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HR / People Analytics · how-to

Diversity Index → EBIT regression — in Excel

A composite-index-driver 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 group counts into a single trackable diversity metric

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

SCORE-INDEX · mechanical

same index treatment for gender composition

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

REGRESS

estimate how each diversity index moves EBIT

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

VALIDITY · mechanical

keep only a statistically reliable model

=CORREL(measure, criterion)   ' criterion validity

PREDICT

translate diversity indices into a bottom-line forecast

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

Grounded in

Predictive HR Analytics with Excel — §18.1/18.2 Simpson's Diversity Index & EBIT regression

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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