Employee retention
Scenario
You own two restaurants in the Boston area with both being opened for about 11 years now.
You never gave employee retention a second thought up until recently as you are looking to rebound from the COVID pandemic.
You realize with lower margins that you need to be more strategic with retaining employees as you have little time to keep hiring and training new employees all the time.
You also want to save on hiring, job postings and training costs that come with new hires.
You have had some customers on your facebook page (which you PROMPTLY DELETE AND BAN THEM FROM POSTING AGAIN!!!) over the years complain about new hires not knowing your super awesome sophisticated MENUS
Your google reviews have also referred to your customer service as inconsistent (mostly due to new employees coming in and learning the ropes)
Questions
Points Cumulative Points
1) Put together a survival plot of your employees churn for both restaurants combined 10 10
b Run a survival plot on each restaurant individually 20 30
c Based on your survival plots, describe each restaurants employee churn. Where are the inflection points for each restaurant. 5 35
d Based on your survival plots, where are the inflection points for each restaurant. 5 40
2) Run a box plot on employee tenure between each restaurant 10 50
b Based on your box plot, which restaurant looks more problematic in terms of employee retention and why? 5 55
c In your view, does your box plots comparing the restaurants retention add any additional information versus your survival plots? Explain your response. 5 60
3) Run at least 2 box plots on employee characteristics for the restaurant that is problematic 20 80
b Based on your box-plots, do you notice any troublesome patterns on retention of employees with select characteristics? Explain your response 5 85
c What solution would you recommend the restaurant undertake to solve the issue/s found in your box-plots (3b) 10 95
4) If you were hiring new employees, would you recommend the restaurants to offer higher starting wages or go after more experienced individuals for all new hires, why or why not? 5 100
Extra Credit Develop a Regression Model that Predicts Employee Retention Duration 10
Let's say you have the folliwng new hires: based on your model, how long do you expect each to work at each restaurant (2 predictions for each hire)? 10
Hire 1 Hire 2 Hire 3 Hire 4
Female Male Female Male
12.00 Starting Rate 8.00 Starting Rate 18.50 starting rate 15.00 starting rate
Full Part Part Full
21 YO 35 YO 55 YO 22 YO
1 years of Experience 10 years of experience 30 years of experience 0 years of experience