Case Study of Store24 (a): Managing Employee Retention
Case Study of Store24 (A): Managing Employee Retention
Summary: The top executives of a chain of convenience stores, Store24, are attempting to come up with ways to increase employee tenure at their stores. We need to determine the relationship of employee tenure to store profits before they commit to this. They collected profits, management and crew tenure, and site location factors of 75 stores. Based on the data, we recommend that Store24 researches ways to increase employee tenure, more specifically manager tenure. Holding store location factors constant, manager tenure has the greatest impact on profits of Store24 stores.
Problem and Matching Objectives: In defining the problem, we need to determine whether employee drives performance and how well employee tenure explains financial performance compared to site location factors. If we can find proof that employee tenure drives performance, we need to determine how to distribute the budget in extending retention of managers and crew. Our project is to set up a relatively reliable model to predict the corresponding change in the store performance, specifically the store profitability, with an increase in the employee tenure.
Data Analysis: Based on the data we have, we plan to set up a multi-regression model with the expected profit as the depend variable Y and all other factors (Manager tenure, Crew tenure, Competitor number, Population, Visibility, Pedestrian foot traffic volume, 24 hour open or not, and located in residential or industrial area) as independent variables. From the scatter plots below, we can see that management and crew tenures drive performance.
We consider Visibility, PedCount, Res, and Hours24 factors as dummy variables, and we calculate correlation coefficient to understand the correlation between profit and the independent variables. According to the result below, we know that Mtenure, Ctenure, Population, Visibility=4, Visibility=5,Pedestrian=4, and Pedestrian=5 have
Summary: The top executives of a chain of convenience stores, Store24, are attempting to come up with ways to increase employee tenure at their stores. We need to determine the relationship of employee tenure to store profits before they commit to this. They collected profits, management and crew tenure, and site location factors of 75 stores. Based on the data, we recommend that Store24 researches ways to increase employee tenure, more specifically manager tenure. Holding store location factors constant, manager tenure has the greatest impact on profits of Store24 stores.
Problem and Matching Objectives: In defining the problem, we need to determine whether employee drives performance and how well employee tenure explains financial performance compared to site location factors. If we can find proof that employee tenure drives performance, we need to determine how to distribute the budget in extending retention of managers and crew. Our project is to set up a relatively reliable model to predict the corresponding change in the store performance, specifically the store profitability, with an increase in the employee tenure.
Data Analysis: Based on the data we have, we plan to set up a multi-regression model with the expected profit as the depend variable Y and all other factors (Manager tenure, Crew tenure, Competitor number, Population, Visibility, Pedestrian foot traffic volume, 24 hour open or not, and located in residential or industrial area) as independent variables. From the scatter plots below, we can see that management and crew tenures drive performance.
We consider Visibility, PedCount, Res, and Hours24 factors as dummy variables, and we calculate correlation coefficient to understand the correlation between profit and the independent variables. According to the result below, we know that Mtenure, Ctenure, Population, Visibility=4, Visibility=5,Pedestrian=4, and Pedestrian=5 have