Paying new hires fairly Ben Teusch HR Analytics Consultant - - PowerPoint PPT Presentation

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Dec 26, 2022 161 likes •420 views

DataCamp Human Resources Analytics in R: Exploring Employee Data HUMAN RESOURCES ANALYTICS IN R : EXPLORING EMPLOYEE DATA Paying new hires fairly Ben Teusch HR Analytics Consultant DataCamp Human Resources Analytics in R: Exploring Employee

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Paying new hires fairly

HUMAN RESOURCES ANALYTICS IN R: EXPLORING EMPLOYEE DATA

Ben Teusch

HR Analytics Consultant

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DataCamp Human Resources Analytics in R: Exploring Employee Data

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DataCamp Human Resources Analytics in R: Exploring Employee Data

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DataCamp Human Resources Analytics in R: Exploring Employee Data

The data

> head(pay) # A tibble: 6 x 5 employee_id department salary new_hire job_level <int> <chr> <dbl> <chr> <chr> 1 1 Sales 103263.64 No Salaried 2 2 Engineering 80708.64 No Hourly 3 4 Engineering 60737.05 Yes Hourly 4 5 Engineering 99116.32 Yes Salaried 5 7 Engineering 51021.64 No Hourly 6 8 Engineering 98399.87 No Salaried

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Introducing broom::tidy()

> chisq.test(survey$in_sales, survey$disengaged) Pearson's Chi-squared test with Yates' continuity correction data: survey$in_sales and survey$disengaged X-squared = 25.524, df = 1, p-value = 4.368e-07 > chisq.test(survey$in_sales, survey$disengaged) %>% + tidy() statistic p.value parameter method 1 25.52441 4.368222e-07 1 Pearson's Chi-squared test ... > chisq.test(survey$in_sales, survey$disengaged) %>% + tidy() %>% + pull(p.value) [1] 4.368222e-07

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Let's practice!

HUMAN RESOURCES ANALYTICS IN R: EXPLORING EMPLOYEE DATA

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Omitted variable bias

HUMAN RESOURCES ANALYTICS IN R: EXPLORING EMPLOYEE DATA

Ben Teusch

HR Analytics Consultant

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DataCamp Human Resources Analytics in R: Exploring Employee Data

When group compositions differ

Two groups of people A: eats little to no meat B: eats normal amount of meat Group A gains weight Conclusion: weight gain plans should exclude meat?

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DataCamp Human Resources Analytics in R: Exploring Employee Data

When group compositions differ

Two groups of people A: eats little to no meat B: eats normal amount of meat Group A gains weight Omitted piece of data: group A is made up of infants group B is made up of adults

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Omitted variable bias

Omitted variable bias occurs when an omitted variable is correlated with: the dependent variable, and the way the groups are divided

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Visualizing group composition

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DataCamp Human Resources Analytics in R: Exploring Employee Data

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DataCamp Human Resources Analytics in R: Exploring Employee Data

100% stacked bar charts

> pay %>% + ggplot(aes(x = new_hire, fill = department)) + + geom_bar(position = "fill")

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Let's practice!

HUMAN RESOURCES ANALYTICS IN R: EXPLORING EMPLOYEE DATA

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Using linear regression

HUMAN RESOURCES ANALYTICS IN R: EXPLORING EMPLOYEE DATA

Ben Teusch

HR Analytics Consultant

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DataCamp Human Resources Analytics in R: Exploring Employee Data

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Linear regression

Focus on testing differences between groups Learn more about other uses and the math under the hood at DataCamp

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DataCamp Human Resources Analytics in R: Exploring Employee Data

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DataCamp Human Resources Analytics in R: Exploring Employee Data

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Simple linear regression

> lm(salary ~ new_hire, data = pay) %>% + tidy() term estimate std.error statistic p.value 1 (Intercept) 73424.603 577.2369 127.200112 0.00000000 2 new_hireYes 2649.672 1109.3568 2.388476 0.01704414 # A tibble: 2 x 2 new_hire avg_salary <chr> <dbl> 1 No 73424.60 2 Yes 76074.28 > 76074.28 - 73424.60 [1] 2649.68

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Significance for linear regression

> lm(salary ~ new_hire, data = pay) %>% + tidy() term estimate std.error statistic p.value 1 (Intercept) 73424.603 577.2369 127.200112 0.00000000 2 new_hireYes 2649.672 1109.3568 2.388476 0.01704414

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Multiple linear regression

> lm(salary ~ new_hire + department, data = pay) %>% + tidy() term estimate std.error statistic p.value 1 (Intercept) 72844.040 679.3007 107.233869 0.00000000 2 new_hireYes 2649.028 1108.9698 2.388728 0.01903265 3 departmentFinance 3092.807 2457.0717 1.258737 0.20832572 4 departmentSales 1477.215 1082.4749 1.364665 0.17256792

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Using summary()

> lm(salary ~ new_hire + department, data = pay) %>% + summary() Call: lm(formula = salary ~ new_hire + department, data = pay) Residuals: Min 1Q Median 3Q Max

31674 -14446 -3629 10657 88580

Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) 72844.0 679.3 107.234 <2e-16 *** new_hireYes 2649.0 1109.0 2.389 0.017 * departmentFinance 3092.8 2457.1 1.259 0.208 departmentSales 1477.2 1082.5 1.365 0.173

Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1

Residual standard error: 18890 on 1466 degrees of freedom Multiple R-squared: 0.005923, Adjusted R-squared: 0.003889 F-statistic: 2.912 on 3 and 1466 DF, p-value: 0.03338

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DataCamp Human Resources Analytics in R: Exploring Employee Data

Let's practice!

HUMAN RESOURCES ANALYTICS IN R: EXPLORING EMPLOYEE DATA