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Descriptive Analysis of Employees' Sample Data

BUSI 650: Business Analytics

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Introduction

The sample data provided is based on a company that has multiple departments and

consist of information on employees like their ethnicity, their start and end dates, their Annual

Salary, etc.

In this report, we make a detailed analysis of the company employee data and get

meaningful insights that can be used to see the performance of the workforce in different

departments, each department's workforce distribution based on gender, Salary calculation of

employees according to their tenure in the company and analysis of average age of the

employees in the company and relationship between different variable of data and their deep

analysis to get insights. The purpose of this report analysis is to gain a deeper understanding of

the workforce composition, performance distribution, and relationships between key variables.

Analysis

Task 1:

Use pivot tables to calculate and summarize the average salary and tenure across

different departments and job Title.

In this Task 1, we calculate the tenure from the given data set of employees which we

find by using the Exit date minus the Hire date. Once we have tenure in decimal form in years

we use pivot table to calculate and summarize average salary and tenure based on different

departments and job titles. We get the desired result by using the Variable of employee sample

data ‘job title’ and ‘department’ in the row of the table and Average tenure and Average salary in

Values of the pivot table. Below is the data sample

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Task 2:

Create a pivot table to showcase the distribution of employees based on their performance

scores within each department.

In this task, we first make a Performance score indicator of the employees and to create a

Performance score we use the bonus of the employees and multiply it by 10 to calculate a

performance indicator out of 10. Using Full name, Department, and performance score in the

pivot table. We place the Performance score in the value part of the pivot table and sort the data

department and employee performance score-wise within departments. Below is the pivot table.

Task 3:

Investigate which Business Unit has the highest Female-to-Male employee ratio.

In this task we investigated the gender distribution across business units to determine which one

has the highest Female-to-Male employee ratio, to indicate diversity patterns within the

organization. And as per the search women are 51.8% in the company as compared to men which

are 48.20%
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Task 4:

Compute the mean, median, mode, standard deviation, and range for age, salary, and

tenure.

Using descriptive statistics tools in data analysis we find summary statistics which include mean,

mode, median, standard deviation, and range for table variables like age, salary, and tenure.

These statistics show a thorough overview of the central tendencies and distribution within these

key variables. Note that in the case of tenure, we pick the data only for those data sets whose exit

date was given.

Age Annual Salary Tenure

Mean 44.382 Mean 113217.4 Mean 4.931928

Standard Error 0.355661 Standard Error 1693.273 Standard Error 0.554819
Median 45 Median 96557 Median 3.261111
Mode 45 Mode 146140 Mode 0.544444
Standard Standard
Standard Deviation 11.24698 Deviation 53545.99 Deviation 5.115177
Sample Variance 126.4946 Sample Variance 2.87E+09 Sample Variance 26.16504
Kurtosis -1.08112 Kurtosis -0.04372 Kurtosis 2.641795
Skewness 0.022987 Skewness 0.886402 Skewness 1.647473
Range 40 Range 218435 Range 22.28056
Minimum 25 Minimum 40063 Minimum 0.041667
Maximum 65 Maximum 258498 Maximum 22.32222
Sum 44382 Sum 1.13E+08 Sum 419.2139
Count 1000 Count 1000 Count 85

Task 5:

Analyze and compare the variance in age, salary, and tenure. Discuss what these variance
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measurements reveal about each variable in conjunction with the results from the previous

question.

As we know Variance refers to a statistical measurement of the spread between numbers in a

data set. More specifically, variance measures how far each number in the set is from the mean

(average), and thus from every other number in the set. After applying data analysis tool using

covariance on age, salary and tenure we find that, age has a moderate spread with a relatively

normal distribution. Salary has a wide spread with a positive distribution, indicating the presence

of higher earners. And tenure has a moderate spread suggesting some employees have longer

tenures.

Age Annual Salary Tenure

Annual
Age 126.3681 Salary 2864305406 Tenure 25.85721

Task 6:

Create a histogram to illustrate the age distribution. Compare the insights from this chart

with the mean age calculated earlier.

In this task we have created the histogram chart for age variable of the sample data. The x-axis of

the date shows the age range of the employees, where as the y-axis tells us about the number of

employees in that age range. As we calculated the mean age earlier which is 44.38 in which

almost 88 employees fall near to it as per the histogram. The interesting observation is that in

histogram the maximum number of employees falls under 44.5 – 48.4 range.
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Task 7 & 8:

Examine the correlation between salary and tenure, as well as between age and

performance score, using scatter plots for visualization. Adjust the scatter plot from the

previous question. On the Annual Salary axis, use bins of $35,000 each and display the

units in thousands.

A correlation ship tells us about the movement of two variable which are interdependent and fall

between -1 and 1. After applying correlation between Salary and tenure we that both variables

moves inversely but not perfectly and somewhat they are weak and negative in direction where

as in the case of performance and age the correlation is very weak and and are negative in

direction. And when we plot the data for these variables on Scatter plots we can see in case of

tenure vs annual salary there are many outlier after applying the trend line, the relationship is

somewhat weak even after making bin adjustment of 35000. The X-axis indicates the Annual
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salary and Y-axis indicates the Tenure of an employee. On the other hand the Age vs

performance scatter plot the data is scatter and have many outliers in it when see with trend line

indicating relation is weak and negative in direction. In X-axis we have age variable where as in

the Y-axis we have performance score of the employees.

Annual Performance
Salary Tenure Score Age
Performance
Annual Salary 1 Score 1
-
Tenure 0.129928067 1 Age -0.015555127 1

Tenure vs Annual Salary

25

20

15
Years

10

0
$35,000 $85,000 $135,000 $185,000 $235,000 $285,000
Annual Salary

Age vs Performance score

4.5
4
3.5
Performance Score

3
2.5
2
1.5
1
0.5
0
20 25 30 35 40 45 50 55 60 65 70
Age
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Task 9:

Conclusion

The analysis of employee data shows some interesting trends. The company has an equal gender

presence with women constituting 51.8% of its employees. The average age of 44.38 is at the

center with a slight emphasis on employees whose age is in the range between 44.5 years and 48.

However, the varying nature of salary and tenure is indicative of a difference in compensation

plans and employee retention approaches. The relationship between the salary and tenure is a

weakly negative correlation which implies that there is a slight lowering of salary with increase

in years of service. Performance scores results demonstrate poor correlation with age, and so age

practically has no influence on individual performance. The scatter plots show the presence of

outliers in relationships which imply individual difference. In general, these patterns may be

shaped or affected by organizational policies, and selection methods as well as dynamics within

industries to better appreciate understand the underlying trends.