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HR / People Analytics · how-to

Diversity Index → EBIT impact — in Excel

A composite-index-regression analysis. Every step below is the same analysis rendered for Excel — grounded in the source, honest where Excel can't do a step cleanly.

Same analysis, your tool

SCORE-INDEX

convert raw headcount breakdowns into one trackable diversity metric

=AVERAGE(items)   ' one score/row across the ethnic diversity items

SCORE-INDEX · mechanical

same index treatment for the gender dimension

=AVERAGE(items)   ' one score/row across the gender diversity items

REGRESS

estimate how diversity indices move earnings before interest and taxes

=LINEST(Y, X_block, TRUE, TRUE)   ' or Data ▸ Data Analysis ▸ Regression

VALIDITY · mechanical

confirm the diversity-EBIT relationship is reliable

=CORREL(measure, criterion)   ' criterion validity

PREDICT

quantify the business value of increasing diversity

' apply the fitted equation per row: y = const + b1*x1 + …

Grounded in

Predictive HR Analytics with Excel, Sec 18.1-18.2 Convert Diversity into Index + regress on EBIT

Doing HR / People Analytics work?

The full HR / People Analytics guide covers this and the whole workflow around it — reconciled from the field’s best books.

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