1. Case
The case study involves a D&Y company that seeks to understand the reason behind most of the employees not working for the company for more than 3 years. From the data, it is evident that only 32 employees remained working for the company after 3 years of being in the D&Y Company. 34 of the employees, on the other hand, worked for the company for less than 3 years and left. This is one thing that bothers the management and they seek to come up with a solution to this issue and propose ways in which employee retention can be improved. The company went further to study patterns of the starting salary of the employees as it could be one of the reasons why the employees did not stay for long in the D& Y Company. Majority of the employees under the case study are individuals who have a degree in computer information systems. 27 of the employees attended a state college for a degree in a computer information system. The company has also provided us with an on-road pact that is the time each employee has spent with an employee. 2. The objective of the problem
The company seeks to understand the reason behind most of the employees leaving the company and what can be done to boost the retention of employees in the company. 3. Methodology
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The company collected data on the educational background of the employees and this included whether the employee had gone to a state university or not. The company also collected information on starting salary and an on-road pact for all the employees. 4. Analysis
The company seeks to determine whether the starting salary has an impact on the number of years employee chooses to stay in the company. The data was analyzed by determining the mean starting salary for the individuals who have stayed in the company for more than 3 years and for those who have stayed for fewer years. The 95% confidence for the two means were determined as well as the confidence interval for the two means. 5. Excel output
The mean starting salary for employees who have stayed in the company for less than 3 years was found to be 38,556 while the mean starting salary for individuals who have been in the company for 3 years and more is 37381. The standard deviation between these two means was found to be 587.
| Employees who have stayed for less than 3 years | |
| Standard deviation | 1859.1888 |
| Mean | 38555.882 |
| n | 34 |
| Confidence interval | 12959.829 |
| Employees who have stayed for at least 3 years | |
| Standard deviation | 1777.54 |
| Mean | 37381.25 |
| n | 32 |
| Confidence interval | 615.87487 |
| Confidence Interval for the difference between the means | |
| Standard Deviation | 587.31618 |
| Mean | 37968.566 |
| n | 2 |
| Confidence interval | 813.96374 |
6. Conclusion
From the company, we see that the people who were paid less in the company ended up staying for more years in the company. This could be attributed to the fact that talented individuals are paid more and they tend to have a good demand in the market. These individuals thus end up leaving the company earlier than other individuals who as talented as they are. The other individuals end up staying longer in the company because they want to gain experience so that they can also stand competitive in the job market. The other reason for individuals leaving the company was on road pact as the employees tend to get frustrated because of too much traveling and they thus decide to leave the company. 7. Managerial implications
The company should thus consider balancing the number of times an employee spends on the road pact so as to boost employee retention in the company. Starting salary has a low impact on the retention rate of the employees; therefore the company needs to look into other factors that could be the cause of employees staying for less than 3 years in the company.
