ProblemA financial institution was sure salary was driving people out, and the instinct was to simply raise offers.
ApproachI tested the salary theory directly across 300 employees, controlling for the other factors so a single loud variable couldn't take the credit. Hypothesis testing alongside regression keeps you honest about what is significant and what only looks that way.
FindingSalary was not statistically significant once the other drivers were controlled for. Career development and training were.
OutcomeThey built real progression paths instead of just raising offers, and attrition fell 20% within 12 months of acting on the finding.
Leadership's theory
✕ Salary
Not statistically significant once the other drivers were controlled for.
What the data showed
✓ Career development
✓ Training
Tested vs significanthypothesis testing
| Driver | Tested | Significant |
| Salary | ✓ | ✕ |
| Career development | ✓ | ✓ |
| Training | ✓ | ✓ |
20% lowerattrition within 12 months of acting on the finding
Attrition, indexed (100 = before)before vs after
Hypothesis testingRegressionPeople analyticsSignificance testing