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HR / People Analytics · how-to

Diversity Index → EBIT regression — in Python

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

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

SCORE-INDEX · mechanical

same index treatment for gender composition

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

REGRESS

estimate how each diversity index moves EBIT

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

VALIDITY · mechanical

keep only a statistically reliable model

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

PREDICT

translate diversity indices into a bottom-line forecast

model.predict(df)

Grounded in

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

Doing HR / People Analytics work?

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