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HR / People Analytics · how-to

Diversity Index → EBIT impact — in Python

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

Same analysis, your tool

SCORE-INDEX

convert raw headcount breakdowns into one trackable diversity metric

df["EthnicityDiversityIndex"] = df["items"].mean(axis=1)

SCORE-INDEX · mechanical

same index treatment for the gender dimension

df["GenderDiversityIndex"] = df["items"].mean(axis=1)

REGRESS

estimate how diversity indices move earnings before interest and taxes

smf.ols("y ~ x1 + x2", data=df).fit()

VALIDITY · mechanical

confirm the diversity-EBIT relationship is reliable

df["measure"].corr(df["criterion"])

PREDICT

quantify the business value of increasing diversity

model.predict(df)

Grounded in

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

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