Starting salaries(2)

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Starting salaries(2)

  1. 1. By: Wadha Alqahtani
  2. 2. People work for money.  following the Hierarchy of needs, Food, shelter, clothing, and mobility.
  3. 3. Scattergram of Starting Pay for Systems Analysts That Stayed Less than 3 Years y = -0.0015x + 72.233 R2 = 0.1771 0 5 10 15 20 25 30 35 34000 34500 35000 35500 36000 36500 37000 37500 38000 38500 39000 39500 40000 40500 41000 41500 42000 42500 43000 Starting Pay TenureinMonths
  4. 4. There seems to be inverse relationship between length of stay and pay. Those who are paid less stay longer.  Assuming starting pay is based on merit, one may theorize that those given lower salary to start with are not as attractive to employers who poach. We see from the computed r2 value of the trend line that salary explains just 17.7% of the variance.
  5. 5. Retaining systems analysts at D&Y Employee StartSalOnRoadPct StateUCISDegreeStayed3Yrs Tenure 1 38900 57% Yes Yes No 11 2 42300 68% Yes Yes No 5 3 39800 75% No Yes No 21 4 35700 29% No Yes Yes 5 40400 71% No Yes No 19 6 36400 62% No Yes No 18 7 37300 41% Yes No Yes 8 36600 37% No Yes No 17 9 34600 65% No Yes No 20 10 42300 53% Yes Yes No 16 11 37800 73% No Yes Yes 12 39700 60% No Yes No 12 13 36100 56% Yes Yes Yes 14 36100 42% Yes Yes Yes 15 33800 35% No Yes Yes 16 38900 36% No Yes Yes 17 35500 50% No Yes No 15 18 37600 58% No Yes Yes 19 38100 78% Yes Yes Yes 20 38300 16% No No Yes 21 34600 29% No Yes Yes 22 36300 26% No Yes Yes 23 37200 59% Yes Yes No 14 24 37700 55% Yes Yes Yes
  6. 6. System analysts typically receive starting wages of just 37,986.63. This is 15% lower of the 40,000. Just one in six Systems Analysts at D&Y receive starting pay of 40,000. Nearly have stayed three or more years.
  7. 7. Is D&Y offering less than the industry standard of $40K to the employees that don’t stay for at least 3 years? Number of employees in the D&Y= 66 People who left = 34. The average salary for each one = 38,555.88. The variance between people who left and stayed = 3,561,328.
  8. 8. We reject the null hypothesis and draw the conclusion: D&Y really does pay its Systems Analysts who leave before 3 years are up less than the industry norm.
  9. 9. The statistical analysis suggested that wages below the industry standard do not explain turnover among D&Y Analysts. Lack of loyalty is more likely explained by leadership, recognition and self esteem, and the organizational climate as a whole.
  10. 10. Obviously , D&Y would do well to address these factors if it wishes to come to grips with employee turnover rate. Equity and the effect of normal pay on self- esteem mean D&Y also needs to address the pay gap anyway.
  11. 11. Thanks For listening

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