Managing Employee Retention Essay

September 12, 2017 Business

One of the first stairss in analysis of the information is to do a comparing of the 10 most profitable shops and the 10 least profitable shops. Hart claimed that the director and crew term of office in the most profitable shops was about four times the degree of that in the least profitable shops. This analysis is nevertheless based entirely on the drumhead statistics for those 10 shops in each class. Taking a closer expression at the consequences for the single shops would propose that the relationship is non so simple. For illustration looking at shop 47. which is at the underside of the 10 most profitable list. both the crew and director term of office are really low in comparing to the other shops in the list. This means that it would non be expected that shop 47 would be so profitable if the director and crew term of office were the lone influencing factor on profitableness. In fact. the degrees of term of office in this shop are lower the norm of those from the 10 last net income shops. which would bespeak that really low degrees of net income would be expected from the shop. A more in-depth analysis is hence needed.

There is farther grounds that neither director term of office nor employee term of office entirely significantly influences the profitableness of each shop. This may seen in the scatter-plots which are included below as Figure 1 and Figure 2. It appears clear from Figure 1 that most directors have been at their shop for less than 50 months. and the mean which is given for director term of office is 45. 3. This mean may nevertheless be somewhat higher than the median would be given that there are several extremely high values which would act upon the computation of the mean. A similar form may be seen in Figure 2. where it is clear that most employees have lower than 20 months keeping. with the mean given as 13. 9 months.

What is besides evident from these secret plans is that neither variable may significantly explicate variableness in the profitableness of a shop. This is apparent in the r-squared value. which indicates that merely 19. 6 % of fluctuation in profitableness may be explained by director term of office entirely. Similarly. merely 6. 7 % of this fluctuation may be explained by employee term of office entirely. It hence is evident that there are multiple variables which may act upon profitableness.

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In order to measure whether a director and employee term of office combine to act upon profitableness a multiple arrested development theoretical account may be formed utilizing these two variables. The consequences of this arrested development may be seen in Table 1.

Figure 1: Correlation between director term of office and shop profitableness
Figure 2: Correlation between employee term of office and shop profitableness

From Table 1 it may be seen that when sing both director and employee term of office there is still merely 21. 7 % of fluctuation in profitableness which these variables may explicate. This therefore indicates that there must be other factors which exert an influence. It would hence be suited to build a multiple arrested development theoretical account which takes into history other variables for which information is available. Although it was originally believed that the relationship may be non-linear. this still does non significantly increase the r-squared value.

Table 1: Arrested development theoretical account in which director term of office and employee term of office are included |Regression Statisticss |
|Multiple R |0. 465617551 |
|R Square |0. 216799704 |
|Adjusted R Square |0. 19504414 |
|Standard Error |80212. 7404 |
|Observations |75 |




Multiple Regression Model
The first multiple arrested development theoretical account which is included is that which includes all of the variables for which informations are available. These variables are:
Yttrium: Profitableness
X1: Manager term of office
X2: Employee term of office
X3: Population near shop
X4: Competition near shop
X5: Visibility of shop
X6: Pedestrian count
X7: Residential or industrial country
X8: 24 hr entree









The consequences of the arrested development theoretical account may be seen in Table 2 below. This shows that utilizing the theoretical account with all eight variables included 63. 8 % of the fluctuation in profitableness may be explained. This suggests that the theoretical account may be valid in explicating the impact on profitableness. In add-on to this. from Table 3 it may be seen that the value of the F-test statistic is 14. 53. with a significance of less than 0. 05 which besides shows that the theoretical account is important. However by looking at the consequences in Table 4 it may be seen that non all of the variables which are included in the theoretical account may be significantly lending to the theoretical account. As the variable X5. which is the visibleness of the shop. has a p-value of more than 0. 05 this suggests that the variable is non lending significantly to the theoretical account.

This would propose that taking this variable may farther better the theoretical account. In add-on to this it would be necessary to take any variables which were collinear as this could interfere with the consequences of the arrested development. After utilizing the plan PHStat to analyze the variable rising prices factors ( VIFs ) of the variables these are all below 5. which shows that there is no collinearity between variables. Therefore the improved theoretical account would be one which included all variables except X5.

The Impact of Increasing Crew Tenure

From the arrested development equation which is calculated from the multiple arrested development theoretical account it may be seen that increasing both director and employee term of office is important in increasing profitableness of shops. Specifically. the theoretical account predicts that for every month addition in director term of office there would be an addition in net incomes of around $ 787 if all other factors were kept changeless. Besides. for every addition of one month in employee term of office there is predicted to be an addition in profitableness of around $ 963 if all other factors were kept changeless. It was suggested that the relationship between term of office and profitableness may be dependent on the length of term of office. i. e. a non-linear relationship. However the adjustment of a tendency line to the scatter-plot suggests that a non-linear relationship does non suit the informations significantly better than a additive tendency line. Therefore it would be predicted that an addition in employee term of office of 1. 38 months would ensue in an addition in profitableness of around $ 1330.

Cogency of the Data

The information on which the above analyses are based contains information taken from 2000. which is now eight old ages old. Therefore it is possible that the fiscal deductions of increasing crew term of office have changed slightly. It would nevertheless be considered valid to utilize the informations to supply an estimation of the fiscal deductions as the factors which would act upon the arrested development theoretical account used would be mostly the same. Although the informations besides included merely the informations from 75 of the 82 shops. this is a big plenty sample to be considered representative of the concatenation as a whole. It would hence be expected that while these other shops may non follow the theoretical account exactly. it should still supply an indicant of the influence of term of office on profitableness of these shops.

Recommendations

Based on the analysis of the informations it would be recommended that increasing both director and employee term of office may significantly increase profitableness of shops. In peculiar. the current fillip program would be profitable to the company if the sum of fillip offered were less than around $ 1330. as this is the addition in profitableness which would ensue. However. it is besides possible that offering these fillips would increase director term of office. which would so foster addition profitableness. It would nevertheless be suggested that this alone may non be sufficient to mostly increase the profitableness of some shops. as the overall profitableness of shops is a consequence of an interplay of both site-location and people factors.

Bibliography

Berenson. M. L. . Levine. D. M. & A ; Krehbiel. T. C. ( 2008 ) Basic Business Statistics. 11th Edition. Philadelphia. Dad: Prentice Hall.

Kazmier. L. J. ( 2003 ) Schaum’s Outline of Business Statistics. New York: McGraw-Hill.

Levine. D. M. . Stephan. D. F. . Krehbiel. T. C. & A ; Berenson. M. L. ( 2007 ) Statistics for Managers Using Microsoft Excel. Philadelphia. Dad: Prentice Hall.

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