Table of Contents

Introduction........................................................................................................... 2
Objective of the Report....................................................................................... 2
Overview of Assessment 2 Findings....................................................................2
Purpose of Policy Recommendations..................................................................2
Conceptual Framework and Hypotheses................................................................3
Key Metrics and Variables................................................................................... 3
Proposed Causal Relationships...........................................................................3
Hypotheses Development.................................................................................. 4
Regression Model and Diagram.............................................................................5
Correlation and Regression Analysis......................................................................7
Correlation Matrix Analysis................................................................................. 7
Regression Results and Interpretation................................................................7
Key Findings from Correlation and Regression....................................................8
HR Policy Recommendations................................................................................. 9
Conclusion........................................................................................................... 10
References........................................................................................................... 11
Appendix.............................................................................................................. 12
Appendix A: Original Regression Output...........................................................12
Appendix B: Correlation Matrix.........................................................................12
Appendix C: Profitability by Business Division..................................................12
Appendix D: Profitability by Branch..................................................................13

1
Introduction

Objective of the Report

This whole report basically aims to support and provide evidence-based
HR policy recommendations in order to basically improve the staffing
practices and organizational outcomes of an organization. By applying
these predictive analytics, particularly regression analysis, we can explore
the important relationships between key HR metrics and different
business outcomes such as profitability, productivity, and engagement
(Tanasescu et al., 2024). The main goal is to basically identify actionable
and workable strategies to basically optimize recruitment, enhance
employee performance, and basically drive profitability across the
organization to the maximum (Al-Quhfa et al., 2024).

Overview of Assessment 2 Findings

The findings that we have concluded from completing Assessment 2
basically revealed significant amount of differences in profitability across
branches and business divisions within the organization to us. Home Cares
was basically identified as one of the most profitable divisions among all,
basically generating an average profitability amount of $24,915 per
employee, despite employing fewer staff members compared to other
Community Outings, which basically generated an amount of $22,805 on
average. At the branch level, Denver branch basically emerged as one of
the top performers with a profitability amount of $25,475, while Brighton
branch lagged significantly at $20,032 amount. Key and important factors
such as work experience, education, engagement, and salary were
basically identified as strong predictors of performance and profitability.

2
Purpose of Policy Recommendations
Building on findings that we have founded from the completion of the
Assessment 2; the main purpose of this whole report is to basically
propose key and important HR policies that are going to basically address
the identified gaps in branch and divisional performance of the
organization (Elias et al., 2023). The whole report is going to completely
focus on improving recruitment practices, increasing employee
engagement, and basically enhancing the overall organizational efficiency
to the maximum level (Georgescu et al., 2024). These recommendations
that we are going to make is basically aimed at underperforming branches
like Brighton, where improvements in recruitment quality, engagement,
and salary structures are very critical and important for the success of the
organization. Additionally, best practices from Denver and Home Cares
are going to be considered for application across the whole organization to
standardize and elevate performance company-wide.

Conceptual Framework and Hypotheses

Key Metrics and Variables

To basically understand the drivers and main factors behind organizational
profitability and performances of the employees, key and important
metrics have been identified from the analysis that were done in
Assessment 2 on the available data. These metrics and important
factors are going to basically form the basis of the conceptual framework
and are basically categorized into independent and dependent
variables:
 Independent Variables:
o Demographics: Work experience, years of education, age
o Efficiency Metrics: Salary, time to fill positions, hiring costs
o Effectiveness Metrics: Performance at 90 days, speed to
competency, engagement levels
o Business Outcome Metrics: Productivity, Bradford Factor
(measuring absenteeism)
 Dependent Variable:
o Profitability: The core and main business outcome that we
are looking to get in this study, basically representing the
average revenue amount that is generated by an employee

3
 minus their costs and expenditures, including salary and
associated expenses that comes with it.

Proposed Causal Relationships

Based on the findings that we got from the analysis that was done in
Assessment 2, several causal relationships are basically proposed. These
relationships basically suggest how different independent variables
together or alone impact profitability and success of the organization:
 Work Experience: More experienced employees in an organization
tend to be more productive and efficient in their roles since, they
have more experience than other employees in what they are doing
(Abdelwahed & Doghan, 2023).
 Productivity: Productivity, measured as billable hours, is directly
related to the company or organizations’ profitability. Employees
who contribute more billable hours or working hours tend to
generate more revenue for the company, thus positively influencing
profitability (Profit.co, 2023).
 Engagement: Engagement parameter basically tells whether the
employees’ is committed to their work or not. Higher engagement is
basically expected to lead to the better performance, which in turn
basically impacts profitability positively (Deepalakshmi et al., 2024).
 Speed to Competency: The quicker an employee reaches
competency in their role, the sooner they can contribute to the
organization's goals. A shorter time to competency is expected to
positively impact profitability (Kim & Jung, 2022).
 AssessmentScore90: This parameter basically measures the
overall capability, attitude, and behaviour of employees 90 days
after joining the organization. A higher score basically indicates
better performance, which should contribute to higher profitability
to an organization (Vuong & Nguyen, 2022).
 Year of Education (YearOFeducation): Higher level of education
typically lead to better decision-making and more effective job
performance, which is expected to basically correlate positively with
profitability (Kampelmann et al., 2018).
 Salary: While salary is more than often associated with higher
profitability due to fact that more skilled employees are being paid
more, but at the same time it can also reflect higher costs that may
need to be balanced with the revenue generated by those particular
employees (Strain, 2019).

4
Hypotheses Development
Based on the above proposed relationships, describe below are some
hypotheses that are derived to basically test the impact of the
independent variables on profitability of an organization:
 H1 (Hypotheses One): Employees with more work experience will
be positively correlated with higher profitability.
 H2 (Hypotheses Two): Higher levels of productivity will lead to an
increase in profitability.
 H3 (Hypotheses Three): Employees with higher engagement will
positively influence profitability.
 H4 (Hypotheses Four): A quicker speed to competency will
positively affect profitability.
 H5 (Hypotheses Five): Higher AssessmentScore90 will be
positively associated with profitability.
 H6 (Hypotheses Six): Higher Sponsor Satisfaction scores will have
a positive impact on profitability.
 H7 (Hypotheses Seven): Employees with more years of education
will positively influence profitability.
 H8 (Hypotheses Eight): Salary will have a positive relationship
with profitability, but high salary levels may also reflect higher
operational costs.
Describe above hypotheses are going to be tested using the correlation
and regression analysis to basically determine the strength and
significance of these parameters and relationships, forming the basis for
evidence-based HR policy recommendations.

Regression Model and Diagram

In this particular section, we basically try to outline the regression model
that we are going to used to analyse the relationships between
profitability (the dependent variable) and key HR metrics (the
independent variables). This regression analysis basically seeks to
determine how the combination of different independent variables such as
productivity, work experience, assessment score after 90 days, sponsor
satisfaction, speed to competency, employee engagement, education
level, and salary impact the dependent variable profitability.
The regression model is built based on the following variables:
 Dependent Variable: Profitability
 Independent Variables:
o Productivity
o Work Experience

5
 o Assessment Score at 90 Days
o Sponsor Satisfaction at 90 Days
o Speed to Competency
o Employee Engagement
o Years of Education
o Salary
Each independent variable was basically selected based on its possible
correlation with profitability and its relevance and importance to the
organization’s performance success and outcomes, as discussed above
and earlier in the conceptual framework. This model basically aims to
assess the extent to which basically these independent variables
collectively contribute to predicting profitability, basically offering insights
into how adjustments in these factors and parameters could basically
enhance the overall financial outcomes of an organization in either a
positive way or negative way.
Describe below is basically the diagram of the regression model that we
are building. It basically depicts the structure of the regression model that
we are building. It contains all the independent variables and dependent
variable.

6
Figure 1: Regression Model Diagram

7
Correlation and Regression Analysis

Correlation Matrix Analysis

The correlation matrix provides insights into the relationships between the
independent variables and profitability.
Key findings include:
 Productivity do basically show a strong positive correlation with
the dependent variable profitability (r = 0.6), suggesting that higher
productivity leads to increased profitability for an organization.
 Work Experience is also very positively correlated with the
dependent variable profitability (r = 0.53), basically highlighting the
role of experience parameter in driving financial outcomes.
 Assessment Score at 90 Days variable basically has a moderate
but positive correlation with the dependent variable profitability (r =
0.48), basically indicating that early performance assessments done
for an employee are very important for profitability of the
organization.
 Speed to Competency variable shows a negative correlation with
the dependent variable profitability (r = -0.47), basically meaning
that faster achievement of competency, basically positively impacts
profitability.
 Engagement variable has somewhat moderate positive correlation
with the dependent variable profitability (r = 0.41), basically
reinforcing that the role of commitment is very important.
 Salary and Years of Education variables basically show weaker
correlations with the dependent variable profitability, basically
indicating they have less direct influence on profitability that initially
imagined.
From the above analysis of the correlation matrix, it is very clear that
productivity, experience, and early performance assessments are key
parameters and drivers of profitability for an organization.

Regression Results and Interpretation

The multiple regression model that is described below basically examines
the impact of key independent variables on dependent variable
profitability, with the following summary that came from the analysis:

8
  R-squared (R²): 0.4124 – About 41.24% of the variability in
profitability is explained by the independent variables.
 Adjusted R-squared: 0.3759 – Adjusts for the number of
variables, confirming that around 37.59% of the variance is
explained by the model.
 Significance F: 4.68E-12 – The model is statistically significant,
indicating the variables collectively influence profitability.
Key Coefficients:
 Productivity (β = 1394.93, p < 0.001) – A strong positive
relationship, where increased productivity boosts profitability
significantly.
 Work Experience (β = 477.86, p = 0.0061) – Each additional
year of experience increases profitability by $478, confirming the
value of experience.
 Assessment Score at 90 Days (β = 1278.53, p = 0.0786) –
Early performance positively impacts profitability, though less
significant.
 Speed to Competency (β = 108.93, p = 0.0975) – Faster
competency improves profitability, though this effect is weaker.
 Engagement (β = -1484.92, p = 0.1080) – Shows a negative
coefficient, though not statistically significant.
 Salary and Education have minimal and insignificant effects on
profitability.

Key Findings from Correlation and Regression

 Productivity and Work Experience are the two variables that are
most strongest and important predictors of profitability for an
organization.
 Assessment Score at 90 Days variable basically positively impacts
profitability but is less significant than the Productivity and Work
Experience.
 Speed to Competency variable do basically plays an important role,
with faster onboarding benefiting profitability. But again, not that
much important on comparing to the Productivity and Work
Experience.
 The overall regression model basically explains the 41.24% of the
variability in profitability, suggesting other factors also influence
profitability not captured in this model.

9
10
HR Policy Recommendations

Recommendations for Improving Employee Engagement:

 Analysis Insight: Engagement variable is positively correlated with
profitability (r = 0.41), but the analysis from the regression model
showed a negative coefficient (β = -1484.92), suggesting that this
trend varied impact by different branches.
 Application (Recommendations): Try to basically develop
tailored engagement strategies, particularly in underperforming
branches like Brighton, based on their unique dynamics. Basically,
different engagement strategies for different branches based on
their demand.
Recommendations for Enhancing Recruitment Quality:
 Analysis Insight: Work experience (β = 477.86) and productivity
(β = 1394.93) are strong profitability drivers.
 Application (Recommendations): Try to focus recruitment efforts
on experienced and productive hires to maximize profitability of an
organization. As employees with greater work experience tends to
have greater impact on the profitability.
Strategies for Optimizing Branch and Division Performance:
 Analysis Insight: Productivity is positively and highly correlated
with profitability (r = 0.59) and also shows the strongest regression
coefficient (β = 1394.93).
 Application (Recommendations): Try to invest in training of the
under skilled employees and replicate best practices from the high-
performing branches and divisions to basically boost productivity
and profitability.
Recommendations for Underperforming Branches (Brighton):
 Insight: Work experience variable is positively and strongly
correlated with the dependent variable profitability (r = 0.53).
 Application (Recommendations): Try to increase the focus on
hiring experienced workers or employees in Brighton to improve
profitability. As we know from the analysis that the experienced staff
increases the profitability of an organisation.
Application of Best Practices from Denver and Home Cares:
 Analysis Insight: Denver’s branch higher salaries and Home
Cares’ focus on experienced, high-quality staff result in better
profitability.

11
  Application (Recommendations): Apply successful practices
from Denver and Home Cares across other branches to improve
profitability per employee.

Conclusion
This whole report and analysis basically highlight key factors and drivers
of profitability across divisions and branches of an organization.
Productivity and work experience are two drivers that basically emerged
as the strongest predictors of profitability. Denver and Home Cares
consistently outperformed other branches by implementing right
strategies that they made based on these two drivers, basically
emphasizing the importance of skilled, engaged, and experienced
employees. Underperforming branches like Brighton show clear gaps in
these areas, particularly in work experience and engagement.
The whole analysis does basically suggest that optimizing recruitment
processes to basically prioritize experience and productivity is very critical
and crucial for profitability of an organization. Investing in employee
development, training, and aligning engagement strategies with branch-
specific needs can significantly improve profitability. Additionally,
branches with better recruitment and onboarding practices, such as
Denver and Home Cares, demonstrate the value of strategic staffing.
Going forward, organizations should basically focus on replicating high-
performing practices from Denver and Home Cares, particularly in the
area and field of recruitment and training. Continuous evaluation of the
engagement strategies, basically tailored to individual branch dynamics
and needs, will further enhance the organizational outcomes. Addressing
experience gaps in underperforming branches will be very important and
crucial in closing the profitability gap for all low performing branches.

12
References
Tanasescu, L. G., Vines, A., Bologa, A. R., & Vîrgolici, O. (2024). Data
analytics for optimizing and predicting employee performance. Applied
Sciences, 14(8), 3254. https://doi.org/10.3390/app14083254
Al-Quhfa, H., Mothana, A., Aljbri, A., & Song, J. (2024). Enhancing talent
recruitment in business intelligence systems: A comparative analysis of
machine learning models. Analytics, 3(3), 297–317.
https://doi.org/10.3390/analytics3030017
Elias, A., Sanders, K., & Hu, J. (2023). The sustainable human resource
practices and employee outcomes link: An HR process lens. Sustainability,
15(13), 10124. https://doi.org/10.3390/su151310124
Georgescu, I., Bocean, C. G., Vărzaru, A. A., Rotea, C. C., Mangra, M. G., &
Mangra, G. I. (2024). Enhancing organizational resilience: The
transformative influence of strategic human resource management
practices and organizational culture. Sustainability, 16(10), 4315.
https://doi.org/10.3390/su16104315
Abdelwahed, N. A. A., & Doghan, M. A. A. (2023). Developing employee
productivity and performance through work engagement and
organizational factors in an educational society. Societies, 13(3), 65.
https://doi.org/10.3390/soc13030065
Profit.co. (2023). Billable utilization and why it matters for your business.
Profit.co. https://www.profit.co/blog/kpis-library/how-to-calculate-billable-
utilization-and-why-it-matters-for-your-business/
Deepalakshmi, Dr., Tiwari, Dr., Baruah, Dr., Seth, A., & Bisht, R. (2024).
Employee engagement and organizational performance: A human
resource perspective. Educational Administration: Theory and Practice,
30(4), 5941–5948. https://doi.org/10.53555/kuey.v30i4.2323
Kim, J., & Jung, H.-S. (2022). The effect of employee competency and
organizational culture on employees’ perceived stress for better
workplace. International Journal of Environmental Research and Public
Health, 19(8), 4428. https://doi.org/10.3390/ijerph19084428
Vuong, T. D. N., & Nguyen, L. T. (2022). The key strategies for measuring
employee performance in companies: A systematic review. Sustainability,
14(21), 14017. https://doi.org/10.3390/su142114017
Kampelmann, S., Rycx, F., Saks, Y., & others. (2018). Does education raise
productivity and wages equally? The moderating role of age and gender.
IZA Journal of Labor Economics, 7, 1. https://doi.org/10.1186/s40172-017-
0061-4

13
Strain, M. R. (2019). The link between wages and productivity is strong. In
Expanding economic opportunity for more Americans (pp. 168–179). The
Aspen Institute. https://www.aei.org/wp-content/uploads/2019/02/The-
Link-Between-Wages-and-Productivity-is-Strong.pdf

Appendix
Appendix A: Original Regression Output
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.642183684
RSquare 0.412399884
Adjusted RSquare 0.375959567
Standard Error 6109.484682
Observations 138

ANOVA
df SS MS F Significance F
Regression 8 3379368358 422421044.7 11.31713211 4.68349E-12
Residual 129 4815028598 37325803.08
Total 137 8194396956

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -20643.85024 11534.99926 -1.789670702 0.075852968 -43466.12879 2178.428318 -43466.12879 2178.428318
Productivity 1394.931609 340.3294275 4.098768713 7.29764E-05 721.5815021 2068.281717 721.5815021 2068.281717
WorkExperience 477.8613283 171.4717901 2.786821832 0.006127097 138.6001919 817.1224646 138.6001919 817.1224646
AssessmentScore90 1278.527495 721.1605476 1.772874986 0.078609575 -148.3063103 2705.361301 -148.3063103 2705.361301
SponsorSatisfaction90 -425.1193115 858.8718437 -0.494974093 0.621460422 -2124.418289 1274.179666 -2124.418289 1274.179666
SpeedToCompetency 108.9253669 65.26225003 1.669040936 0.097534468 -20.19759316 238.048327 -20.19759316 238.048327
Engagement -1484.917734 917.4949597 -1.618447838 0.108008581 -3300.203983 330.3685144 -3300.203983 330.3685144
YearOFeducation -354.4965261 432.3459249 -0.819937244 0.413764302 -1209.903527 500.9104752 -1209.903527 500.9104752
Salary 0.009794305 0.036626512 0.267410247 0.78958037 -0.062672146 0.082260755 -0.062672146 0.082260755

Appendix B: Correlation Matrix

Productivity WorkExperience AssessmentScore90 SponsorSatisfaction90 SpeedToCompetency Engagement YearOFeducation Salary Profitability
Productivity 1
WorkExperience 0.733557102 1
AssessmentScore90 0.705730521 0.553172474 1
SponsorSatisfaction90 0.812108453 0.648363883 0.618880035 1
SpeedToCompetency -0.842032064 -0.781378389 -0.66600616 -0.693210396 1
Engagement 0.802974024 0.623110744 0.655982642 0.711182734 -0.722614771 1
YearOFeducation 0.70128248 0.674871537 0.561845784 0.619475744 -0.733484276 0.622014765 1
Salary 0.299601124 0.30447359 0.263871538 0.29245421 -0.295750427 0.229920187 0.307076447 1
Profitability 0.592141191 0.525701115 0.475429718 0.468600771 -0.47082567 0.413775337 0.386699532 0.211263649 1

14
Appendix C: Profitability by Business Division

Profitibility average
$25,250
$24,750
$24,250
$23,750
$23,250 Total

$22,750
$22,250
$21,750
Community Outings Home Cares
Total 22804.5714285714 24914.5454545455

Appendix D: Profitability by Branch

Profitibility average
$30,000

$25,475
$25,000 $24,233 $23,747

$20,032
$20,000
Total
$15,000

$10,000

$5,000

$0
Brighton Denver Eaton Victoria

15