Employee Retention

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Describe the relationship between manager and crew tenure and store-level performance. Estimate the actual financial impact of increased tenure. (Specifically show impact of increasing 1.38-month increase in crew tenure) Describe how important manager and crew tenure are relative to site-location factors in determining store-level financial performance. Recommend the most convenient alternative to increase employee retention: a.- Increasing wages

b.- Bonus program
c.- Training programs
d.- Career development programs

Financial impact of employee tenure
The correlations of manager tenure (+0.44) and crew tenure (+0.26) with profits show that there is a clear positive financial effect of increasing tenure. Though both factors have a quite strong correlation with profits, the manager tenure seems to be a much stronger driver. However, considering the learning curve of the employees it seems reasonable to assume that the impact of tenure depends also on the tenure itself. In other words, employees would be increasing their contribution much more at the beginning of their careers than once that they acquired all the core skills needed. One way to contemplate this effect into the analysis is replacing the tenure by its corresponding square root. The comparison of the linear and the non-linear models shows that the non-linear model fits better. The financial value of a manager or a crew can be estimated according to its

| Linear Model | Non-Linear Model |
| Adj. R Square | Std. Error | Adj. R Square | Std. Error | Profits | 0.588 | 57360 | 0.629 | 54470 | Sales | 0.530 | 208732 | 0.574 | 198766 |
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