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HR / People Analytics · how-to

Diversity Index → EBIT impact — in R

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

Same analysis, your tool

SCORE-INDEX

convert raw headcount breakdowns into one trackable diversity metric

df$EthnicityDiversityIndex <- rowMeans(df$items)

SCORE-INDEX · mechanical

same index treatment for the gender dimension

df$GenderDiversityIndex <- rowMeans(df$items)

REGRESS

estimate how diversity indices move earnings before interest and taxes

lm(y ~ x1 + x2, data = df)

VALIDITY · mechanical

confirm the diversity-EBIT relationship is reliable

cor(df$measure, df$criterion)   # criterion validity

PREDICT

quantify the business value of increasing diversity

predict(model, newdata = df)

Grounded in

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

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