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Starting salaries(2)






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Starting salaries(2) Starting salaries(2) Presentation Transcript

  • Starting Salaries
    By: Wadha Alqahtani
  • Introduction
    • People work for money.
    • following the Hierarchy of needs,
    • Food, shelter, clothing, and mobility.
  • The Relationship Between the Two Variables.
    • 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.
  • The Situation at D&Y
    • 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.
  • The Hypothesis Test
    • 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.
  • The Hypothesis Test
    • 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.
  • Recommendations.
    • 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.
  • Recommendations.
    • 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.
  • Thanks For listening