DUC GIA NGHI NGUYEN

ID: 101477133

Part 3
1. Complete the following chart (worth 6 marks):

Salary
Gender (1 - M, Attrition Yr
Age in Yrs. Seniority Salary increases for
0-F) 2022
the last year
min 0 21.010 0 40,105.0 0% 0
max 1.000 59.390 36.480 199,909.0 17% 1.000
average 0.439 35.134 6.908 121,066.8 8.4% 0.105
median 0 31.930 4.800 122,011.0 8.0% 0
correlation
0.071 0.055 0.053 -0.015 0.054 1.000
with attrition
correlation
-0.068 0.682 1.000 -0.019 0.017 0.053
with seniority

2. Create a pivot table as recommended below (worth 4 marks):

Average of
Sum of Count of
Row Average of Average of Salary Average of Attrition
Attrition Yr Attrition Yr
Labels Age in Yrs. Seniority increase for Salary %
2022 2022_2
the last year
0 17 215 34.37 6.41 7.90% 124,632.8 8%
1 22 220 34.73 6.69 8.54% 123,421.5 10%
2 54 474 35.33 7.08 8.47% 119,507.9 11%
3 40 352 35.60 7.12 8.51% 119,516.3 11%
Grand
133 1261 35.13 6.91 8.40% 121,066.8
Total

3. Based on your calculations, please answer the following questions. Please make sure you both
describe the results of your calculations (e.g., provide the range of scores) and explain their
meaning and people management implications.

Q1)Describe demographic characteristics of the company’s workforce. How many employees

are there? Are the two genders illustrated equally represented? What are the min and the
max age? Which age groups can be identified? Which other insights about demographic
characteristics can you observe? (5 marks)
- How many employees are there?
 1261 employees
- Are the two genders illustrated equally represented? Not equally because:
 Not equally because: Male: 553; Female: 708
- What are the min and the max age?
  Min: 21.01; Max: 59.39
- Which age groups can be identified?
+ Young employees aged 21-30 years old (minimum age is 21)
+ Mid-career employees aged 31-45 years old (covers the average age of 35.13)
+ Older employees aged 46-60 years old (covers up to the maximum age of 60)
- Which other insights about demographic characteristics can you observe?
The correlation of 0.682 between age and seniority indicates a strong positive relationship.
This means that as age increases, seniority tends to increase as well. In other words, older
employees are likely to have been with the company longer.

Q2)Analyse data related to salaries and the salary increase. What is the minimum, maximum,
average, median? (5 marks)
+ Minium salary: $40,105
+ Maximum salary: $199,909
+ Average salary: $121,067
+ Median salary: $122,011
 Minimum salary is $40,105 and maximum salary is $199,909. This indicates a wide variation in
salaries within the company, which could be due to different job roles, levels of experience, or
performance. A broad range like this is common in larger organizations with diverse positions.
 Average salary is $121,067 and Median salary is 122,011 means that the salaries are quite evenly
distributed among the employees. Since the median is very close to the average, it indicates that
there are not many extremely high or low salaries skewing the average.
 The average salary increases of 8.4% for the last year. This could indicate that the company is
doing well financially and is able to reward its employees with a salary increase above the typical
inflation or cost-of-living raise, which is usually around 2-3%.

Q3)Analyze data related to seniority. (5 marks)

+ The minimum seniority is 0 years, indicating that there are new hires in the company.
+ The maximum seniority is 36.48 years, showing that some employees have a very long tenure
with the company (more than 3 decades).
+ The average seniority is 6.91 years, which suggests that on average, employees have been with
the company for a moderate amount of time.
+ The median seniority is 4.80 years, which is lower than the average, indicating that more than
half of the employees have a tenure less than the average, pointing to a relatively younger
workforce in terms of company experience.

Q4)Based on your correlation analysis, which variables are positively related to attrition. And
which variables are negatively related to attrition? How can you explain this? (5 marks)
+ Variables are positively related to attrition: gender (0.071), age (0.055), seniority (0.053), and
salary increases for the last year (0.054).
+ Variables are negatively related to attrition: salary (-0.015)

Positive correlation means that as one variable increases, the other variable also tends to increase.
Negative correlation means that as one variable increases, the other variable tends to decrease.
 1. Gender (0.071): This correlation suggests that there is a slight tendency for one gender
to leave the company more than the other. If males are coded as 1 and females as 0, a
positive correlation might indicate that males are slightly more likely to leave the
company than females.

2. Age (0.055): A weak positive correlation with attrition means that as employees get
older, there is a slightly higher chance of them leaving the company. This could be due to
retirement, career changes, or other life events that are more common as age increases.

3. Seniority (0.053): This also shows a weak positive correlation, suggesting that
employees with more years of service have a marginally higher likelihood of leaving.
This could be because long-tenured employees might seek new challenges or retire.

4. Salary increases for the last year (0.054): This weak positive correlation suggests that
employees who received salary increases last year have a slightly higher likelihood of
leaving the company. This might seem counterintuitive, as we would typically expect
salary increases to reduce attrition. However, it could be that employees who received
raises still left for better opportunities, or it could reflect that even with a raise, other
factors influenced their decision to leave. It's important to note that this is a very weak
correlation, so the relationship is not strong.

5. Negative correlation of the salary and attrition (-0.015) suggests that there is a slight
tendency for employees with higher salaries to stay with the company, while those with
lower salaries might be more likely to leave. However, since the correlation is very weak,
it indicates that salary might not be a strong predictor of whether an employee will leave
or stay. Other factors could be more influential in the decision to leave the company.

Q5)Based on your correlation analysis, which variables are positively related to seniority. And
which variables are negatively related to seniority? How can you explain this? (5 marks)

Variables are positively related to seniority: Age (0.682), Salary increases for the last year (0,017)
Variables are negatively related to seniority: gender (-0.068), salary (-0.019)

1. Age (0.682): This strong positive correlation suggests that as employees get older,
their seniority increases, which is logical since more years in age could mean more
time spent at the company.
2. Salary increases for the last year (0.017): This very weak positive correlation implies
that employees who have been with the company longer might receive slightly higher
salary increases. However, since the correlation is so weak, it indicates that the length
of time an employee has been with the company is not a strong predictor of the size
of their salary increase. Other factors could be playing a more significant role in
determining salary increases.
3. Gender (-0.068): This weak negative correlation suggests that one gender may have
slightly less seniority than the other. If males are coded as 1 and females as 0, it could
imply that females have slightly less seniority on average, but the relationship is
weak.
 4. Salary (-0.019): This indicates that having a higher salary does not necessarily mean
an employee has higher seniority at the company. In other words, employees with
longer tenure don't always have higher salaries, and vice versa. Since the correlation
is so weak, it suggests that other factors might determine salary levels more than just
the length of service.
Q6)Based on Pivot table 1, describe differences between departments in terms of their size,
workforce demographics, and salaries. (5 marks)

- Administration (label 0): This department has a total of 215 employees, with 17 of them having left the
company. The workforce in Administration has the lowest average age and seniority, which are 34.37
years and 6.41 years respectively. The fact that the Administration department has the highest average
salary at $124,632.8 but the lowest average salary increases of 7.90%. It could reflect that the department
may already have higher salaries compared to others, so the increases are relatively smaller.

- Sales and Marketing (label 1): This department has 220 employees with 22 attritions. The average age
of employees in Sales and Marketing is 34.73 years, which is marginally older than Administration. The
average seniority is 6.69 years, indicating a similar level of experience within the company as
Administration. Specially, the Sales and Marketing department having an average salary of $123,421.5,
which is slightly lower than the Administration department, and the highest average salary increase of
8.54% compared to other departments. It suggests that while the base salaries in Sales and Marketing may
not be the highest, the company is actively trying to increase them, possibly to remain competitive and
retain talent in a role that directly contributes to the company's revenue. The higher salary increase could
also be an incentive to motivate the sales and marketing team, considering their direct impact on business
growth.

- Production (label 2): This department is the largest with 474 employees and 54 attritions, which is the
highest among the departments. The workforce has an average age of 35.33 years, which is older than the
Administration and Sales & Marketing departments. The average seniority is the high at 7.08 years,
indicating that employees in Production tend to stay with the company longer than the Administration and
Sales & Marketing departments’ employees. The average salary is $119,507.9, which is the lowest among
the departments, and the average salary increase for the last year is 8.47%, which is lower than Sales and
Marketing but higher than Administration.

- Customer Service and Tech Support (label 3): This department has 352 employees with 40 attritions.
The workforce has an average age of 35.60 years, which is the oldest among all departments. Specially, it
has the highest average seniority at 7.12 years indicates that employees in this department tend to stay
with the company longer than those in other departments. The average salary being $119,516.3, which is
just slightly higher than Production. The average salary increases of 8.51%, which is high but just a bit
lower than Sales and Marketing.

Q7)Based on Pivot table 1 and correlations, explain the difference in attrition% for different
departments. (5 marks)

- Administration (label 0):

 + Lowest average age and seniority.

+ Highest average salary but lowest average salary increases.

+ Attrition percent: 8% (lowest).

 Explanation: Despite offering the highest average salary, the Administration department
experiences the lowest attrition rate. This could be because employees in this department have
relatively lower average age and seniority, indicating that they may be earlier in their careers and
less likely to seek new opportunities elsewhere. Additionally, the lower salary increase suggests
that the department may already offer competitive compensation, reducing the incentive for
employees to leave.

- Sales and Marketing (label 1):

+ Slightly older average age than Administration.

+ Similar average seniority as Administration.

+ Highest average salary increases.

+ Attrition percent: 10%.

 Explanation: Sales and Marketing department experiences a moderate attrition rate despite
offering slightly lower average salary compared to Administration. However, the department
provides the highest average salary increases, which could act as an incentive for employees to
stay or attract new talent. The focus on increasing salaries may help retain employees and remain
competitive in the market.

- Production (label 2):

+ Oldest average age among departments.

+ Lowest average salary but moderate salary increases.

+ Attrition percent: 11% (highest).

 Explanation: The attrition rate for the Production department is 11%, which is the highest among
all departments. This suggests that a significant portion of employees within the Production
department are leaving their positions. Several factors such as:
 It has the oldest average age among departments, potentially leading to more retirements
or career changes.
 Despite offering the lowest average salary, moderate salary increases are provided.
 The nature of production roles may contribute, as they can involve physical labor and
repetitive tasks.
 Opportunities for career advancement may be limited, impacting retention.

- Customer Service and Tech Support (label 3):

+ Highest average age and seniority among departments.

 + Average salary slightly higher than Production.

+ Average salary increase is high after Sales and Marketing.

+ Attrition percent: 11% (highest).

 Explanation: Customer Service and Tech Support department, with the oldest average age and
highest average seniority, also experiences the highest attrition rate. Despite offering slightly
higher average salary than Production and competitive salary increases, the department still faces
challenges retaining employees. Customer service and technical support roles can be demanding
and high-pressure, involving dealing with challenging customer inquiries, technical issues, and
sometimes stressful situations. Employees who feel overwhelmed or unsupported in this
environment may be more likely to seek opportunities elsewhere, contributing to higher attrition.