Japanese Companies Turn to AI to Predict Employee Resignations, Create More Engaged Workforce

In an effort to retain their young employees, Japanese companies are turning to AI tools for predicting employee resignations. A new tool developed by researchers at Tokyo City University analyzes various data, including work attendance and personal information, as well as information on former employees who have left the company. This data is used by the system to predict the resignation rate of new recruits.

Professor Naruhiko Shiratori from Tokyo City University explains that they are currently testing the tool in multiple companies to create models tailored to each of them. The results generated by the AI can be used by bosses to inform high-risk employees, without revealing the raw data, that the company is willing to provide support to help them navigate potential difficulties.

The researchers drew on a previous study that used AI to predict the profile of college students likely to drop out in order to develop this tool. In Japan, companies typically hire young graduates every April, but a significant percentage of these workers leave within the first few years on the job. This tool comes at a time when Japanese companies are increasingly focused on taking care of their young employees in light of an aging population and labor shortages in many sectors.

Ultimately, the AI tool offers bosses a way to proactively address employee turnover and potentially reduce the number of employees leaving the company. By using advanced technology to analyze data and predict outcomes, companies can better support their workforce and create a more stable and engaged work environment.