People Analytics - Part B of D

People Analytics & People Strategy Improvisations – Part B of D

General Idea of Working Environment in this Organisation

Exploring the Data Set:
The dataset has:
  • About 15,000 employee observations and 10 variables.
  • The company had a turnover rate of about 24%
  • Mean satisfaction of employees is 0.61
Dataset Summary: 

Present herewith are different statistical measures of central tendency and variation. For example we can see that our attrition rate is equal to 24%, the satisfaction level is around 62%, performance average is around 71%. We see that on average people work on 3 to 4 projects a year and about 200 hours per months.

Even this simplistic summarization conveys a treasure trove of information for us to understand the People modalities in the given dataset.

Being a People Leader, 4 most important variables here, apart from Attrition are Satisfaction Level, Last Evaluation, Experience in Company, Salary. These variables has the potential to affect the Top Line and Bottom Line directly, while other variables like Number of Projects, Average Monthly Hours, Promotion in Last 5 Years are People Variables influencing the workforce at Individual Levels. The very Critical variable of Work Accident, cannot be quantified further than the times of its Occurrences times, with People’s Office having limited influence to it’s prevention, deterrence or treatment post occurrence. Hence this analysis will limit further deep dives in this direction.

Points of Interests:
     a)      Consider the Q1, Degree of Closeness between Mean & Median & Q3 for Satisfaction Level, Last Evaluation, Experience in Company & Salary classifications
     b)     Similarly, extend the same analysis for other variables and one starts to get the operational aspect of People Model at this Organization.

     a)      Performance (Last Evaluation): 25 % of the workforce is operating at around 55 % of Desired Levels (Alarming), Mean and Median are quite close, indicating a spread similar to Standard Normal Curve, which is like, 50 % of the organization straddles around a rating of 0.71 (Concerning) & the Top 25 % Performers are more than 0.87 (Satisfactorily Appeasing), however the disparity between the bucket is a concern.
      b)     Satisfaction: 25 % of workforce is at 44 % (Alarming), Median > Mean, curve seems to be slightly left skewed, indicating around 50 % of workforce being moderately satisfied and 25 % of workforce have approval rating above 0.82. Note that, if NPS is applied here, than only 13 % of Workforce is a Promoter, rest being passive or detractors!!
      c)      Utilization (Average Monthly Hours): 25 % of the workforce is underutilized by 25 % at least. At the same time, 25 % of the workforce is over utilized by atleast 23 % - with remaining 50 % at average 200 Hours !! Aint a healthy picture by any standards, as a good upper cap for average monthly hours would be around 180 hours – but this far exceeds the benchmarks.
       d)      Tenurity (Experience in Company): Looks a pretty young company, with Youngest tenured 25 % of people in organization being 3 year old and Oldest tenured 25 % of People being more than 4 years old. The Mean is greater than Median, indicating the right skewness of the curve, meaning around 50 % of workforce between 3 – 3.5 years.
      e)      Similar readings can be made from Number of Projects & Promotion in Last 5 Years, with the undertones of mismanagement and skewed utilization of resources & a broken Progressions & Rewards and Recognition mechanisms.

Correlation between all the Lead Indicators for Entire Workforce:

Few interesting insights from correlation visualization:

     a)      The Positive correlation between Last Evaluation, Number of Projects & Average Monthly Hours. This is a worrying trend, as workforce tends to be rated higher with the number of projects they are in, and equally tend to put in more hours as number of projects increases.

      b)     A positive in this environment is Allocation of projects and Promotion are not dependent on the Experience in organization. This is a great cue for hard selling merit, however lack of correlation here does not mean that the system is designed in such a way, it might equally mean a total ignorance or blinding away from these variables.

      c)      Check out the row of Experience in organization, and there are no clear signals coming out – this is a worry trend as we can figure out why Attrition is happening, but we still wont be able to figure out why Tenured People are sticking to this environment and their motivations!! Effectively, a long term People Strategy is missing and needs to be shaped out for Workforce aided by different levers in People Value chain to give them a strong reason to stick to the organization.
    d)     Check out the Satisfaction row & one finds the no brainer here – Negative correlation between Satisfaction & Attrition, meaning workforce with lower satisfaction levels have higher probability to leave the organization. 

Insights from Lead Indicators for entire workforce:

Let’s put few parameters on Distribution plots: (Satisfaction – Evaluation – Average Monthly Hours – Experience – Number of Projects)

·         Satisfaction - There is a huge spike for employees with low satisfaction and high satisfaction.
·         Evaluation - There is a bimodal distribution of employees for low evaluations (less than 0.6) and high evaluations (more than 0.8)
·         Average Monthly Hours - There is another bimodal distribution of employees with lower and higher average monthly hours (less than 150 hours & more than 250 hours)
·         The evaluation and average monthly hour graphs both share a similar distribution.
·         Employees with lower average monthly hours were evaluated less and vice versa, as validated from the correlation matrix, where Last Evaluation, Average Monthly Hours & Number of Projects are positively correlated.

     Check out all the parts of People Analytics:
  • Part A - Overview & Macro People Strategy Inferences
  • Part B - General Idea of Working Environment in the Org
  • Part C - General Reasons of Attrition
  • Part D -  People Strategy Improvisations