Edition 1·Updated 2026-08-19·20 min read
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About this book
An overview of the book, with source information for further reading.
Handbook of Regression Modeling in People Analytics
Keith McNultyWritten by a mathematician-turned-practitioner, this open-source handbook fills a critical gap for people analytics professionals who need to move beyond gut instinct and borrowed best practices toward evidence-based decisions.
It treats regression as the indispensable 'Swiss army knife' of people analytics, walking the reader from statistical foundations through linear, binomial, multinomial, ordinal, mixed, structural equation, and survival models. Each method is grounded in a relatable problem, demystified with just enough mathematics to interpret outputs credibly, and demonstrated with reproducible code on realistic data sets. The book emphasizes inference (understanding why something happens) over pure prediction, reflecting the reality of small, consequential people data sets, and equips analysts to defend, critique, and communicate their models to non-statistical stakeholders.
Movement I
Orient
What this book claims, and who wrote it.
- — The book's one-line promise
- — The author and where the book stands
A practical handbook teaching analytics practitioners how to select, run, and interpret the full range of regression models for inferential analysis of people-related questions, with worked examples in R and Python.
The need-to-know
Regression is the most versatile and important inferential toolkit in people analytics. The type of outcome variable (continuous, binary, nominal, ordinal, time-to-event, hierarchical) dictates the appropriate regression method. Model assumptions must be checked before inferences can be trusted.
About this guide
The guide describes these challenges, steps and possible outcomes.
Who it is for
You are building a real capability: Handbook of Regression Modeling in People Analytics.
Challenges
- In practice · Valid Statistical Inference erodes when it is left to instinct instead of method.
- For the reader · You were taught the moves piecemeal, never the whole model.
Steps to consider
- 1Master outcome variable type.
- 2Master data structure and hierarchy.
- 3Master regression method selection.
Risks
You stay dependent on instinct, and it fails you when the stakes are highest.
Intended result
Valid Statistical Inference becomes something you produce by design, not by luck.
Set the record straight
What this book sets straight
The common beliefs this book pushes back on.
You can run multivariate models without understanding the underlying mathematics.
Practitioners cannot credibly respond to questions or critique without at least a basic understanding of the mathematics behind the models.
Ordinal outcomes like ratings or Likert scales can be treated as continuous and modeled with linear regression.
Treating ordinal outcomes as continuous can lead to wildly inaccurate inferences; proportional odds logistic regression is the appropriate approach.
A statistical relationship between variables establishes causation.
Correlation does not equal causation; establishing a relationship is a far cry from establishing that one variable causes another.
Prediction accuracy is the most important aim of modeling.
In people analytics, understanding why something happens (inference) is usually more important and more attainable than prediction given small, consequential data sets.
Movement II
Map
The book's main ideas and how they connect.
Handbook of Regression Modeling in People Analytics's own model — and how it sits inside its field.
- — 9 constructs the book works with
- — Where it agrees with the field, exceeds it, or fills a gap
The constructs
How they connect (9)
- Outcome Variable Type → predicts → Regression Method Selection
- Data Structure and Hierarchy → moderates → Regression Method Selection
- Regression Method Selection → influences → Coefficient Interpretation
- Regression Method Selection → influences → Model Fit and Parsimony
- Assumption Validation → moderates → Valid Statistical Inference
- Coefficient Interpretation → predicts → Valid Statistical Inference
- Model Fit and Parsimony → predicts → Valid Statistical Inference
- Statistical Power and Sample Adequacy → moderates → Valid Statistical Inference
- Valid Statistical Inference → predicts → Stakeholder Impact and Evidence-Based Decisions
Where this book diverges from the corpus
- fills gap Outcome Variable Type — fills gap
- fills gap Coefficient Interpretation — fills gap
- fills gap Assumption Validation — fills gap
- fills gap Valid Statistical Inference — fills gap
Movement III
Master
Explore the book's ideas, examples and practical tools.
How the author makes the case — section by section, with the book's own tools.
- — 9 sections, in the book's order
- — The book's frameworks, checklists, and worked cases
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- Handbook of Regression Modeling in People Analytics
This section shows you how to judge whether a regression model earns its complexity, weighing explained variance against the cost of every additional predictor. You leave knowing which fit statistics to trust and when to cut variables.
Model Fit and Parsimony
The combined assessment of how well the model explains outcome variance (R-squared, pseudo-R-squared, goodness-of-fit tests) and how economically it does so (AIC, removal of non-significant variables), balancing explanatory power against interpretability.
Why it matters. A model that maximizes fit at the expense of parsimony will predict your training data beautifully and your next hiring cohort terribly.
Myth
A higher R-squared means a better model, so you should keep adding predictors until it stops rising.
Reality
R-squared mechanically increases with every variable added, even noise; parsimony metrics like AIC penalize that inflation precisely because unchecked fit is a symptom of overfitting, not quality.
- Stepwise Model Simplification (Parsimony)Process — To create a more parsimonious model by safely removing variables that do not contribute significantly to the model's explanatory power.
- Adjusted R-squared and AIC, not raw R-squared, are the metrics that reward economy alongside explanation.
- A parsimonious model that a line manager can interpret usually outperforms a saturated one in real decisions.
- Every predictor you keep must justify itself on both significance and practical contribution.
The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Parsimony Comparison Worksheet” tool. Included when you buy this guide.
The rest of this section
the full written section · 3 how-to steps · 2 pitfalls to watch for · 1 tool for this section. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
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- Handbook of Regression Modeling in People Analytics
This section helps you determine before analysis whether your headcount data can realistically detect the effects you care about. You learn to size samples and read the risk of missing real relationships.
Statistical Power and Sample Adequacy
The probability that the analysis will correctly detect a true effect given the sample size, effect size, and significance level, determining whether the data has a realistic chance of yielding valid inferences.
Why it matters. An underpowered study that finds nothing tells you nothing — you cannot distinguish a genuine null effect from a sample too small to see it.
Myth
A large employee dataset automatically guarantees adequate power, so power analysis is unnecessary in people analytics.
Reality
Power depends on effect size and the number of observations per predictor and subgroup, not on total headcount; a 50,000-person file split into thin diversity or tenure cells can still be badly underpowered for the comparison you actually need.
- Power Analysis Pre-computation ChecklistChecklist — 4 checkpoints
- Power is driven by events per predictor, so rare HR outcomes demand disproportionately large samples.
- Decide the minimum effect worth detecting first, then size the analysis to catch it.
- A non-significant result in an underpowered model is silence, not evidence of no effect.
The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Sample Adequacy Pre-Registration Sheet” tool. Included when you buy this guide.
The rest of this section
the full written section · 3 how-to steps · 2 pitfalls to watch for · 1 tool for this section. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
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- Handbook of Regression Modeling in People Analytics
This section is where fit, assumptions, power, and interpretation converge into a conclusion you can actually stand behind. You learn what must be true simultaneously before generalizing beyond your sample.
Valid Statistical Inference
The trustworthy generalizable conclusion about the relationship between input variables and the outcome in the broader population, achieved when an appropriate, well-fitted, assumption-validated model is correctly interpreted.
Why it matters. Inference is the one output stakeholders act on, so a conclusion that is technically fitted but assumption-violated or over-interpreted propagates bad decisions across the whole workforce.
Myth
A statistically significant coefficient with a small p-value is itself proof of a valid, generalizable finding.
Reality
Significance is necessary but never sufficient; validity requires that assumptions hold, power is adequate, the model is appropriately specified, and the coefficient is interpreted in context — a p-value below 0.05 from a misspecified model is a confident error.
- General Inferential Modeling ProcessProcess — To provide a structured workflow for developing a robust and generalizable statistical model.
- Valid inference is a conjunction of conditions, not a single significant coefficient.
- Confidence intervals communicate uncertainty that p-values hide.
- State the population and period your conclusion applies to, and refuse to stretch beyond it.
The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Valid Inference Checklist” tool. Included when you buy this guide.
The rest of this section
the full written section · 3 how-to steps · 2 pitfalls to watch for · 1 tool for this section. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
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- Handbook of Regression Modeling in People Analytics
This section covers the last mile: turning a valid model into a decision a non-technical executive will trust and use. You learn to translate coefficients into consequences without distorting them.
Stakeholder Impact and Evidence-Based Decisions
The downstream organizational benefit when valid inferences are clearly communicated to non-statistical decision makers, enabling evidence-based people decisions and improved organizational outcomes.
Why it matters. A perfectly valid analysis that a decision maker cannot understand or misinterprets produces exactly the same organizational damage as a wrong one.
Myth
Communicating results well means simplifying the statistics until the caveats disappear.
Reality
The goal is faithful translation, not dilution; stakeholders make better decisions when uncertainty and boundary conditions are conveyed in business terms, because hiding them invites overconfident action that later backfires.
- Translate statistics into the units and consequences the decision actually turns on.
- Communicating uncertainty honestly builds more durable trust than false precision.
- Explicitly bound what the analysis can decide to prevent stakeholders from overreaching.
The deep drill-down: 7 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Stakeholder Inference Brief” tool. Included when you buy this guide.
The rest of this section
the full written section · 3 how-to steps · 2 pitfalls to watch for. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
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- Handbook of Regression Modeling in People Analytics
This section shows you how to classify the thing you are trying to predict — headcount, attrition, promotion level, tenure until exit — into one of the six measurement types that dictate every downstream modeling choice. Get this classification first; everything else follows.
Outcome Variable Type
The measurement nature of the outcome being modeled (continuous, binary/dichotomous, nominal multi-category, ordinal, time-to-event, or hierarchical), which fundamentally determines which regression technique is appropriate to use.
Why it matters. Misclassifying the outcome type routes you to a technique that produces coefficients and predictions that are mathematically invalid — for instance, predicting probabilities above 1 or treating rank-ordered pay grades as if the gaps between them were equal.
Myth
Practitioners often treat any numeric-coded outcome as continuous, running ordinary linear regression on a 1–5 engagement rating or a 0/1 termination flag because the column contains numbers.
Reality
The numbers stored in a column are labels, not measurements; a five-point Likert scale is ordinal because you cannot assume 'agree' is exactly one unit more than 'neutral', and a binary flag violates linear regression's constant-variance and unbounded-range assumptions.
- Regression Model Selection Decision TreeTemplate — To guide the analyst in choosing the appropriate regression model based on the type of outcome (dependent) variable being studied.
- Classify the outcome's measurement nature before opening any modeling software — it is the single decision that constrains all others.
- Ordinal outcomes carry rank information but not equal intervals, so proportional-odds models preserve information that linear regression destroys.
- Time-to-event outcomes require you to track censoring; ignoring it biases every estimate toward employees who have not yet left.
The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Outcome-Type Routing Checklist” tool. Included when you buy this guide.
The rest of this section
the full written section · 3 how-to steps · 2 pitfalls to watch for · 1 tool for this section. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
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- Handbook of Regression Modeling in People Analytics
This section teaches you to audit the shape of your dataset — whether employees nest within teams, whether dozens of survey items measure a few latent constructs, and whether observations are truly independent — before you assume a single-level model will do.
Data Structure and Hierarchy
The structural characteristics of the data including presence of explicit grouping hierarchies, latent thematic structure among many items, missingness, collinearity, and independence assumptions, which condition the modeling approach and required adaptations.
Why it matters. Ignoring nesting or non-independence collapses your standard errors, making you declare weak effects 'significant' and recommend interventions built on statistical illusions.
Myth
Analysts assume that as long as they have thousands of employee rows, more data guarantees reliable inference regardless of how those rows relate to one another.
Reality
Employees within the same manager or office are correlated, so 5,000 employees in 50 teams carry far less independent information than 5,000 unrelated observations; the effective sample size — and thus your confidence — is governed by structure, not row count.
- Grouping hierarchy determines whether you need a mixed model; check the intraclass correlation before assuming independence.
- Latent thematic structure among survey items should be modeled as constructs, not fed in as many collinear predictors.
- How data went missing matters more than how much is missing — the mechanism decides whether deletion or imputation biases your results.
The deep drill-down: 7 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Data Structure Diagnostic Worksheet” tool. Included when you buy this guide.
The rest of this section
the full written section · 3 how-to steps · 2 pitfalls to watch for. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
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- Handbook of Regression Modeling in People Analytics
This section connects outcome type and data structure to the specific regression family you should run — linear, logistic, multinomial, proportional odds, mixed, SEM, or Cox — and frames that choice as a deliberate design decision rather than a default.
Regression Method Selection
The analyst's deliberate choice of which regression technique to apply (linear, binomial logistic, multinomial, proportional odds, mixed, structural equation, or Cox survival) based on the outcome type and data structure, representing a primary design lever in the modeling workflow.
Why it matters. The method you select determines whether your coefficients answer the business question in interpretable units and whether the model can even be estimated on your data — a wrong choice invalidates the entire analysis regardless of how carefully you clean the inputs.
Myth
Many practitioners believe method selection is a matter of preference or familiarity — reaching for logistic regression or linear regression because that is what they know best.
Reality
Method selection is largely determined for you once you have honestly diagnosed the outcome type and data structure; the analyst's judgment operates at the margins, such as choosing between proportional-odds and multinomial when the proportional-odds assumption is borderline.
- Modeling Soccer Player DisciplineCase study — A sports broadcaster wants to know what factors influence the level of disciplinary action (None, Yellow Card, Red Card) a soccer player receives in a game.
- Let outcome type and data structure narrow the method before personal preference enters the decision.
- The proportional-odds model is preferred for ordinal outcomes but only survives if the parallel-lines assumption holds — always test it.
- Mixed models and SEM are structure-driven upgrades, not defaults; invoke them because the data demands it, not because they look advanced.
The deep drill-down: 8 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Regression Method Selector” tool. Included when you buy this guide.
The rest of this section
the full written section · 3 how-to steps · 2 pitfalls to watch for · 1 tool for this section. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
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- Handbook of Regression Modeling in People Analytics
This section shows you how to read what a fitted model is actually telling you — turning raw coefficients, odds ratios, and hazard ratios into defensible sentences about how a predictor moves an outcome. It covers units, direction, baseline categories, and the scale on which each coefficient lives.
Coefficient Interpretation
The analyst's correct understanding and articulation of model coefficients, including odds ratios, effect directions, units, and significance, enabling translation of model output into meaningful statements about variable relationships.
Why it matters. A misread coefficient becomes a false workforce claim — telling leadership that a training program 'raises retention 40%' when the number was an odds ratio on a rare event can drive a costly, wrong intervention.
Myth
Practitioners treat a logistic regression coefficient (or its odds ratio) as if it were a change in probability or percentage points of the outcome.
Reality
Logistic coefficients live on the log-odds scale and odds ratios are multiplicative on odds, not probability; the same odds ratio implies a large probability change near a 50% base rate and a tiny one near 5%, so the marginal effect depends on where each employee sits.
- Modeling Salesperson PromotionCase study — A company wants to understand what factors (sales, customer satisfaction, performance ratings) influence the likelihood of a salesperson being promoted.
- Always attach the coefficient's scale (log-odds, odds ratio, hazard ratio, raw units) to any spoken or written claim.
- Convert logistic and Cox output to predicted probabilities or survival curves at real employee profiles before presenting to non-technical audiences.
- A coefficient in an interaction model is only interpretable relative to the value of the interacting variable, so never report it as a standalone effect.
The deep drill-down: 7 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Coefficient Statement Builder” tool. Included when you buy this guide.
The rest of this section
the full written section · 4 how-to steps · 2 pitfalls to watch for · 1 tool for this section. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
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- Handbook of Regression Modeling in People Analytics
This section gives you the diagnostic checklist that must clear before you trust any p-value or interval — linearity, homoscedasticity, residual normality, proportional odds, proportional hazards, and collinearity — matched to the specific model family you chose.
Assumption Validation
The degree to which the analyst checks and confirms the underlying assumptions of the chosen model (linearity, homoscedasticity, normality of residuals, proportional odds, proportional hazards, collinearity) before trusting inferences.
Why it matters. Skipping assumption checks means your standard errors and significance tests may be silently wrong, so an inference you present as 90% confident could be a coin flip.
Myth
Analysts believe a high R-squared or a good fit statistic means the model's assumptions are satisfied and the inferences are safe.
Reality
Fit quality and assumption validity are orthogonal — a model can predict well overall while violating homoscedasticity or proportional hazards, which corrupts the standard errors and confidence intervals even when the point predictions look fine.
- Linear Regression Model Assumption ChecklistChecklist — 4 checkpoints
- Checking Linear Regression Model AssumptionsProcess — To validate that the underlying statistical assumptions of OLS regression are met, ensuring the model's inferences are reliable.
- Run the assumption checks specific to your model family, not a generic OLS residual scan applied to everything.
- Use robust or clustered standard errors when homoscedasticity fails rather than abandoning the model outright.
- Validated assumptions are what license the inference step — treat them as a gate, not an afterthought once results are written up.
The deep drill-down: 7 operational steps, a worked example from the source, 5 decision rules, 5 failure modes, and the “Assumption Validation Checklist” tool. Included when you buy this guide.
The rest of this section
the full written section · 4 how-to steps · 2 pitfalls to watch for · 2 tools for this section. Included when you buy this guide.
Grounded in: Handbook of Regression Modeling in People Analytics
The playbook — the whole process
Beneath the model sits the practical spine — 3 named, end-to-end processes the source books lay out. Here they are, in sequence, each broken into the steps you actually run.
The sequence — high level first
Illumination of the parts
Process 1 · named in the source
General Inferential Modeling Process
To provide a structured workflow for developing a robust and generalizable statistical model.
- 1
Define the outcome of interest and input constructs based on a broader evidence-based objective.
- 2
Confirm that the outcome has reliable measurement data.
- 3
Determine which data can be used to measure the input constructs.
- 4
Determine a sample and collect, refine, and clean data.
- 5
Perform exploratory data analysis (EDA) and propose a set of models to test.
- 6
Put the data in an appropriate format for each model.
- 7
Run the models.
- 8
Interpret the outputs and perform model diagnostics.
- 9
Select an optimal model or models.
- 10
Articulate the inferences that can be generalized to the population.
Process 2 · named in the source
Checking Linear Regression Model Assumptions
To validate that the underlying statistical assumptions of OLS regression are met, ensuring the model's inferences are reliable.
- 1
Check the assumption of linearity and additivity, often by plotting residuals against fitted values and looking for random scatter.
- 2
Check the assumption of constant error variance (homoscedasticity) by plotting residuals against each input variable to ensure the variance is stable.
- 3
Check the assumption of normally distributed errors by creating a Q-Q plot of the residuals.
- 4
Avoid high collinearity and multicollinearity by examining a correlation matrix of input variables or calculating Variance Inflation Factors (VIFs).
Process 3 · named in the source
Stepwise Model Simplification (Parsimony)
To create a more parsimonious model by safely removing variables that do not contribute significantly to the model's explanatory power.
- 1
Start with the variable having the least significant p-values across all sets of coefficients.
- 2
Run the model without this variable.
- 3
Test that none of the remaining coefficients change substantially (e.g., by more than 20-25%).
- 4
If no substantial change occurs, safely remove the variable and repeat the process for the next least-significant variable.
- 5
If a substantial change occurs, retain the variable in the model.
- 6
Stop when all remaining variables are statistically significant or have been tested.
What's underneath
What the field takes for granted
Every field runs on assumptions it rarely says out loud — the beliefs its advice quietly depends on. We surface the load-bearing ones, where they hide, and when they break. Most guides never tell you this.
Placing the idea
How it compares — and where else it applies
We don't just explain the idea in isolation. We place it: against the alternative it replaces, and beyond the domain it was born in. That's the difference between knowing a method and knowing when to reach for it.
How it compares
vs Predictive Modeling
Both use statistical models and data to relate input variables to an outcome. Many regression techniques can be used for both purposes.
Inferential modeling's primary goal is to *understand* the relationship between variables and explain an outcome. Predictive modeling's primary goal is to accurately *forecast* the outcome for new data. Interpretability of coefficients is critical for inference, but less so for prediction.
This book is explicitly focused on inferential modeling, which it argues is more often the need in people analytics where stakeholders need to understand 'why' before making decisions impacting individuals.
vs Python vs. R
Both are powerful, free, open-source programming languages capable of performing sophisticated statistical analysis and data manipulation.
The author finds R to have a wider array of resources for inferential modeling. Python is noted as having a more well-developed toolkit for predictive modeling and machine learning.
The book uses R for its primary, in-depth walkthroughs because of its strength in inference, but provides a dedicated chapter (Chapter 10) showing how to implement the same models in Python for users of that ecosystem.
Where else it applies
The model, taken beyond its home domain
Marketing Analytics
The techniques can be used to model customer behavior. For example, using binomial logistic regression to predict purchase likelihood, multinomial regression to model brand choice, or linear regression to model customer lifetime value.
Medical and Epidemiological Research
This is the origin field for many of the book's methods. Survival analysis is used to model patient survival times, logistic regression to model disease risk factors, and mixed models to analyze data from clinical trials with patients clustered in different hospitals.
Economics and Finance
Linear regression can model factors affecting income or stock prices. Logistic regression can model the likelihood of loan default. The methods are directly applicable to understanding economic behaviors and outcomes.
Public Policy and Sociology
Multinomial regression can model voting choices among multiple candidates. Structural equation modeling can be used to understand the latent drivers of public opinion from survey data. The book's example on graduate salaries is a direct application in this area.
Movement III · The run-it-now depth
The Playbook
Practical tools and examples from this guide.
Checklists
Linear Regression Model Assumption Checklist
- Verify the linearity assumption by plotting residuals versus fitted values; check for random scatter.
- Verify the constant error variance (homoscedasticity) assumption by plotting residuals against each predictor; check for stable variance.
- Verify the normality of errors assumption using a Q-Q plot of the residuals; check if points fall along the diagonal line.
- Check for high collinearity or multicollinearity between input variables using a correlation matrix or VIF scores.
Power Analysis Pre-computation Checklist
◆ All 4 checkpoints — included with this guide purchase
Case studies — including what didn't work
When the Earliest Signal Fades: Modeling Final Exam Scores from Prior Years
A biology department analyst learns that not every year of prior performance carries weight when predicting a final-year exam result.
This case shows how a routine multiple linear regression becomes a lesson in variable relevance: the earliest data point turned out to be statistically insignificant, forcing a simpler, more honest model. It matters because parsimony and evidence, not intuition about what 'should' predict, decide what belongs in a model.
The story, in brief
Abstract
An analyst set out to model final-year biology exam scores against scores from the three preceding years using multiple linear regression. Year 1 proved statistically insignificant, so the model was reduced to Year 2 and Year 3, which together explained more than half the variance in the outcome. Interaction terms were explored to test whether the trajectory of prior scores, not just their levels, carried additional signal.
Situation
An analyst for a university's biology department wanted to understand the relationship between students' final-year exam performance and their scores in the three prior years. This is precisely the kind of foundational task that a linear regression is built for: the walkthrough example in the linear regression chapter of McNulty's Handbook of Regression Modeling in People Analytics involves modeling academic results from prior results. The outcome of interest was continuous, the candidate inputs were three earlier score sets, and the goal was inferential — to discover and understand a mathematical relationship between the prior-year measurements and the final result, rather than to build a black-box predictor.
The decision
Following the standard approach, the analyst ran a multiple linear regression with the final exam score as the outcome and the Year 1, Year 2, and Year 3 scores as inputs, then examined the coefficients and their statistical significance. Here the model pushed back against intuition. The Year 1 scores — the earliest signal, and the one you might assume set the trajectory — were not statistically significant. Managing inputs in linear regression, as the Handbook frames it, begins with the relevance of input variables. Confronted with an input that failed that test, the analyst chose to simplify rather than defend it.
What happened
The model was refit using only the Year 2 and Year 3 scores. Rather than accept a single specification, the analyst also extended the model by exploring interaction terms between the input variables — a technique for testing whether the combined trajectory of prior scores, not merely their independent levels, added explanatory power. This is model-building as a disciplined process: fit, interrogate the coefficients, remove what does not earn its place, and then test whether the relationships are more subtle than a simple additive structure.
Outcome
The simplified model, built on Year 2 and Year 3 scores alone, explained over 50% of the variance in the final exam score. Dropping the insignificant Year 1 input cost nothing in explanatory reach while producing a leaner, more interpretable model — the kind of result that stakeholders can understand and trust, which the Handbook argues matters more than raw predictive accuracy in people-related fields.
The lesson
The durable lesson is that the relevance of an input is decided by the data, not by narrative expectation. The most temporally distant predictor — the Year 1 score — seemed like it ought to matter, yet it contributed nothing statistically. A model that keeps such variables in the name of completeness only borrows false precision. Parsimony, arrived at by honest elimination, is a feature.
How to apply it
- When building a multiple linear regression, examine each coefficient's statistical significance before trusting the model, and be willing to remove inputs that fail the test.
- Do not assume the earliest or most obvious variable is the strongest predictor; let the significance tests, not intuition, rank relevance.
- Report goodness-of-fit (such as the share of variance explained) for the simplified model so stakeholders can judge whether the leaner specification holds up.
- Explore interaction terms to test whether the combined trajectory of related inputs adds explanatory value beyond their individual levels.
- Favor the simpler model when dropping an input does not meaningfully reduce fit, since interpretability and trust are central in inferential settings.
When Higher Customer Ratings Hurt: Reading a Promotion Model Honestly
A company's binomial logistic regression revealed that, once sales are accounted for, better customer ratings quietly lowered a salesperson's odds of promotion.
Promotion was decided at the discretion of each regional sales team head, weighing financial performance, customer satisfaction, recent performance ratings and personal judgment. With three years of data on salespeople considered for promotion, no one had isolated which factors actually moved the outcome — and the outcome was binary, so ordinary linear regression did not apply.
◆ The full case — situation, decision, outcome, and the lesson — included with this guide purchase
When the Slope Stays the Same: Modeling Referee Discipline in Professional Soccer
A sports broadcast analyst uses proportional odds logistic regression to identify which player and game factors drive the severity of in-game disciplinary action.
The broadcaster wanted to know which metrics genuinely influence how severely a referee disciplines a player, but discipline is an ordered category — None, Yellow, Red — not a simple binary or an unordered set, so ordinary logistic methods would misrepresent it.
◆ The full case — situation, decision, outcome, and the lesson — included with this guide purchase
Reading the Clock on Attrition: Survival Analysis for Employee Retention
A people analytics team uses survival analysis to quantify how early job sentiment shapes when—not just whether—employees leave.
Retention is fundamentally a timing question—did someone leave, and if so, when—but standard binary models ignore both the clock and the problem of censoring, where an employee is still present (or was last contacted) when the study ends. Treating these incomplete observations as simple 'stayers' or dropping them throws away real information and can distort conclusions about what drives people out.
◆ The full case — situation, decision, outcome, and the lesson — included with this guide purchase
Templates
Regression Model Selection Decision Tree
To guide the analyst in choosing the appropriate regression model based on the type of outcome (dependent) variable being studied.
◆ The fillable template — included with this guide purchase
Items marked Paid are included when you buy this guide.
Reading well
How the author makes the case
Reading well means seeing how an argument is built, not just what it claims. Here are the moves this author uses to persuade you — the technique, where it shows up, and what it's doing to you. See the machinery, and you read everything more sharply.
Simplification of Complexity
The author intentionally limits mathematical exposition 'to a level that allows confident and fluent execution and interpretation' rather than delving into deep theory, as stated in the introduction.
To make the complex topic of regression modeling accessible and practical for analytics practitioners who are not academic statisticians, prioritizing application over theoretical purity.
Pattern Repetition
Most technical chapters follow a consistent structure: 'When to use it', a real-world 'Walkthrough example', explanation of the model's intuition, R code for implementation, guidance on interpretation and diagnostics, and 'Learning exercises'.
To create a predictable and easy-to-follow learning path. This scaffolding allows the reader to focus on the nuances of each new model without having to re-learn the chapter's structure.
Storytelling
Each chapter is framed around a relatable analytics problem, such as 'Analyzing graduate salaries' (Ch 12), 'Analyzing a recruiting process' (Ch 12), or modeling soccer player discipline (Ch 7).
To motivate the technical material by grounding it in a practical context. This makes the abstract statistical concepts more concrete and demonstrates their real-world value immediately.
Metaphor
In Chapter 1, the author describes regression as being able to 'cut through the messiness, compartmentalize the randomness and lead you straight to inferences'.
To create an intuitive and appealing image of regression's power, framing it as a tool that brings clarity to complex data rather than just a dry mathematical procedure.
Movement IV
Reflect
Consider the book's evidence, limitations and how it compares with other sources.
How good is it — where the book stands against the field, what it leaves open, and when to trust it.
- — Its positioning, its critique, its blind spots
- — When to apply it — and when not
- — The evidence behind the advice
Book profile · in the corpus
This book’s model, against the corpus
5 of 9 constructs align with the field · 4 the book adds · 0 where it diverges · the field spans 66 constructs across 111 books
Shared with the corpus — corroborated by other sources
This book's own emphasis — where it's the authority
The corpus adds — from 110 other sources this book doesn't cover
The full field guide folds in ideas this book doesn’t reach — drawn from 110 further sources and cited in the full model.
This book’s place in the corpus
Why the corpus guide, not just this book
This book is a primary voice in organizational science; the reconciled field-guide adds the 62 constructs and cross-book reconciliation a single book can't provide.
This guide stands on the shoulders of this book and 110 other sources — every claim cited, the disagreements named.
Read it closely
The book, examined
Not a summary — a close analytical reading: how the book is built, what it leaves open, and where it falls short.
How it’s built — the argument in order
- 01Motivation and orientation (Ch. 1) — Establishes why regression is the indispensable 'Swiss army knife' of people analytics, frames the inference-over-prediction emphasis, positions the book as a practical bridge between messy real data and credible insight, and previews structure and learning objectives.
- 02Scoping the analytic process (steps 7–10) — Acknowledges the full analytic pipeline (problem definition, data collection, cleaning) but deliberately narrows focus to model selection, execution, interpretation and validation, signaling what the book will and won't teach.
- 03Tooling and pedagogical method — Sets up R as primary tool with Python in later chapters, and establishes the chapter template: relatable problem, minimal-but-sufficient mathematics, walkthrough example, and end-of-chapter exercises on alternate data/problems.
- 04Statistical foundations (Ch. 3 onward) — Grounds later modeling in descriptive statistics, distributions of random variables, and hypothesis testing, introducing the salespeople data set that recurs, so readers can interpret model outputs credibly.
- 05Progression through regression families — Moves outcome-type by outcome-type — linear, binomial, multinomial, ordinal, mixed, structural equation, survival — each keyed to the nature of the dependent variable, building toward a decision framework for method selection.
What it leaves unsolved
How does one reliably define the problem, collect valid measures, and clean data before modeling?
The author explicitly defers steps 1–6 as 'for another day' while conceding they are critical and 'loaded with analytic traps' — meaning the book's inferences rest on foundations it does not teach.
At what exact point is mathematical understanding 'enough' for credible practice?
The book aims to limit math to a level allowing 'confident and fluent execution and interpretation,' but never operationalizes where that threshold sits, leaving the sufficiency judgment to the reader.
How should analysts handle the causal gap between inference ('why something happens') and mere association?
The book champions inference over prediction but the passages describe regression as revealing 'relationships' and 'influences' without addressing confounding, endogeneity, or the leap from correlation to causal claim.
How much data is genuinely enough for the small, consequential people data sets emphasized?
Power analysis is named as a key question and takeaway, but the passages stress that people data sets are small and consequential without resolving how power constraints should temper the confident inferences the book promises.
Where it falls short — a fair critique
By self-consciously excising steps 1–6 (problem framing, measurement, cleaning), the book teaches technique on already-tidy data (e.g., the pre-structured salespeople set) yet these excluded steps are where the author admits most analytic errors originate — so the reader is equipped to run models but not to trust their inputs.
The central claim that inference dominates because people data sets are small and consequential sits in tension with the promise to walk through the 'full range' of complex models (SEM, survival, mixed): the very small-n reality that justifies inference also undermines the statistical power those elaborate models require, a tension the framing does not reconcile.
The book positions regression as the near-universal toolkit for understanding 'why something happens,' but the foundational chapters presented (descriptive stats, distributions, hypothesis testing) never engage causal-inference methodology (designs, counterfactuals, identification), so the 'why' promise outruns the machinery actually supplied.
The pedagogy leans on reproducible walkthroughs and exercises on clean example data, which risks teaching output interpretation in an idealized setting; the messy, random real data the author praises regression for cutting through is asserted rather than demonstrated in the foundational passages.
Framing regression as inherently able to 'cut through the messiness' and 'compartmentalize the randomness' to yield surprisingly clear conclusions risks overselling the method — regression can just as easily launder noise into confident-looking coefficients when assumptions fail, a risk the assumption-validation takeaway names but the motivational rhetoric downplays.
Before you apply it
Using it well
Where the method fits, who it’s for, and the honest case for and against — so you apply it where it works.
Is this book for you?
For you if
- You work in people analytics and rely on gut instinct or borrowed best practices
- You can run code but don't understand what the model outputs mean
- You need to defend or critique models to stakeholders
Skip it if
- You want deep theoretical statistics or proofs
- You need prediction-at-scale ML rather than inference
- You seek help with data collection or cleaning
Need first
- Descriptive statistics of populations and samples
- Distribution of random variables
- Hypothesis testing
- Basic familiarity with R (or Python)
When it applies — and when it doesn’t
- Modeling a people-related outcome to understand what drives it — inferential regression is the book's core purpose
- Choosing a method based on outcome type (binary, ordinal, time-to-event) — the book maps outcome types to appropriate models
- Interpreting and defending model outputs to non-statistical stakeholders — emphasizes credible interpretation and communication
- Analytics outside people/HR domains — author states material transfers naturally to other disciplines
- Building high-accuracy predictive models at scale — book prioritizes inference over pure prediction
- Working with very large datasets where power is trivial — power analysis framed for small consequential people data
- Problem definition, data collection and cleaning — explicitly out of scope, covers only steps 7-10
- Deriving deep statistical theory or proofs — math limited to what enables fluent interpretation
The honest case
Strongest case for
- Regression is a versatile, underused toolkit that cuts through messy data to clear inferences
- Matching method to outcome type is a rigorous, teachable discipline
- Minimal-but-sufficient math builds credibility to defend and critique models
- Inference fits the small, consequential datasets typical in people analytics
Strongest objection
- Emphasizing inference over prediction may underserve teams needing forecasting
- Regression-centric framing may crowd out other valid methods for messy people data
- Assuming assumptions can be validated understates how often real people data violate them
Tensions — choices to make, not settled answers
The model's constructs are drawn from the source element(s); load-bearing constructs are corroborated across the shelf, emerging ones are flagged.
Ideas covered by the source notes
- Outcome Variable Type
- Data Structure and Hierarchy
- Regression Method Selection
- Coefficient Interpretation
- Assumption Validation
- Model Fit and Parsimony
Movement IV · Measure · The evidence
The evidence behind the advice
We don’t just assert — we show the research the ideas rest on: the study, its key finding, what it means for you, and the citation to chase it yourself. Then a curated path to go deeper. Grounded, not hand-waved.
The studies
The empirical backing, with findings and citations — trace any claim to its source.
Regression to the mean
Galton's study of parent and child heights
The relationship was not perfect. The heights of children of very tall or very short parents tended to be closer to the population average height than their parents' heights. Galton described this as a 'regression towards mediocrity'.
Introduced the statistical concept and term 'regression'.
This is the origin story for the term 'regression' and provides the foundational intuition for linear regression models.
Mentioned in Chapter 4, with a chart from Senn (2011) illustrating the data.
Go deeper
A curated reading ladder — not a dump. Each with why it’s worth your time.
- R for Data Science · Hadley Wickham and Garrett Grolemund
Recommended as a key resource for learning the basics of R, which is the primary programming language used throughout the book.
- Applied Logistic Regression · David W. Hosmer, Stanley Lemeshow, and Rodney X. Sturdivant
Cited as a go-to source for a deeper treatment of goodness-of-fit tests for logistic regression models, a topic the book introduces but doesn't cover exhaustively.
- Analysis of Ordinal Categorical Data · Alan Agresti
Recommended for readers who want a more intensive treatment of ordinal data modeling, including alternatives to the proportional odds model.
- Modelling Survival Data in Medical Research · David Collett
Recommended as an in-depth text on survival analysis, particularly for understanding more advanced topics like frailty models.
- Generalized Latent Variable Modeling: Multilevel, Longitudinal, and Structural Equation Models · Anders Skrondal and Sophia Rabe-Hesketh
Cited as an excellent resource for a deeper study of the theory and application of latent variable models and structural equation modeling.
Movement V
Measure
Use available assessments to reflect on what you have learned.
A way to gauge yourself against the book's model, and the instruments it gives you.
- — A self-check built from the book
- — Instruments and what you'd measure next
Learning curriculum
After this book, you can…
The book's learning objectives, classified by Bloom's taxonomy and ordered so each builds on the ones before it.
- classifyAfter this book you can classify an outcome variable by its measurement nature (continuous, binary, nominal, ordinal, time-to-event, or hierarchical).Check: Given a set of research questions and variables, correctly label each outcome's type with a rationale.
- explainAfter this book you can explain why regression is the central inferential toolkit in people analytics and articulate the value of evidence-based over intuition-based decisions.Check: Short written justification of regression's role in a people analytics scenario, evaluated for accurate framing of inference and business value.
- distinguishAfter this book you can distinguish inferential modeling from predictive modeling and justify why inference dominates in small, consequential people-data contexts.Check: Compare-and-contrast question requiring the learner to classify given analytic tasks as inferential or predictive and defend the appropriate emphasis.
- interpretAfter this book you can correctly interpret model coefficients, including odds ratios, effect directions, units, and significance.Check: Given model output tables, write plain-language interpretations of coefficients and odds ratios with correct direction and units.
- calculateAfter this book you can conduct a power analysis to judge whether the sample size is adequate to detect a meaningful effect and whether research effort is justified.Check: Given effect size, sample size, and significance level, compute statistical power and recommend whether to proceed.
- selectAfter this book you can select the appropriate regression method given the outcome type and data structure.Check: Case scenarios where the learner chooses among linear, binomial, multinomial, ordinal, mixed, SEM, and survival models and justifies each choice.
- runAfter this book you can run a linear regression model in R or Python on a realistic people data set and reproduce the analysis.Check: Hands-on coding task producing a reproducible linear regression on a supplied data set with correct syntax and output.
- executeAfter this book you can run and reproduce binomial, multinomial, ordinal, mixed, structural equation, and survival regression models in R or Python.Check: Series of coding exercises, one per model family, each producing reproducible output on the relevant data set.
- validateAfter this book you can check and confirm the underlying assumptions of a chosen regression model (linearity, homoscedasticity, normality of residuals, proportional odds, etc.) before trusting its results.Check: Given model output and diagnostic plots, perform and document assumption checks, flagging violations.
- identifyAfter this book you can identify the structure and hierarchy of a data set, including grouping levels and latent thematic structure among items.Check: Analyze a described data set and diagram its nesting/grouping and any latent item structure.
- assessAfter this book you can assess model fit and pursue parsimony, using R-squared, pseudo-R-squared, and goodness-of-fit tests to prefer simpler models with comparable fit.Check: Compare competing nested models on fit and complexity and recommend the most parsimonious defensible model.
- judgeAfter this book you can judge whether a statistical inference is valid and generalizable to the broader population by integrating assumption checks, fit, and power.Check: Critique a completed analysis and render a defensible verdict on whether its inferences can be trusted, citing specific evidence.
- communicateAfter this book you can communicate valid inferences clearly to non-statistical stakeholders to enable evidence-based organizational decisions.Check: Produce a stakeholder-facing summary translating model results into actionable, non-technical recommendations.
- designAfter this book you can design a complete, reproducible regression study grounded in a real-world people problem, from method selection through interpretation and openly shareable code.Check: End-to-end project: define a problem, select and run the appropriate model, validate assumptions, assess fit, and deliver reproducible code and a written report.
- critiqueAfter this book you can defend and critique a regression model against methodological challenge using appropriate mathematical understanding of the method.Check: Respond to a set of critical questions about a model's methodology, demonstrating enough mathematical grounding to defend the outputs.
How to measure it
Turning each idea into a measure
For each construct: how to operationalize it, the observable signals to look for, and how well it holds up.
Classification of the outcome column as continuous, binary, nominal multi-category, ordinal, time-to-event, or hierarchical based on inspection of values and distribution.
- data type of outcome column
- number of distinct values
- presence of order among categories
- presence of timing/event data
Categorical typology, not a numeric scale.
High construct validity as it is directly observable from the data. · Highly reliable; objective classification.
Assessment via exploratory data analysis, correlation matrices, variance inflation factors, and knowledge of data collection design.
- grouping identifiers in data
- correlated item clusters
- NA counts
- VIF values
- pairplot patterns
Mixed: some components binary (hierarchy present/absent), others continuous (correlation magnitude).
Validity depends on thoroughness of EDA. · Reliable when standard diagnostics are consistently applied.
The specific modeling function and family invoked (e.g., lm, glm binomial, multinom, polr, lmer/glmer, sem, coxph) as documented in the analysis.
- modeling function chosen
- documented rationale for method
- alignment of method with outcome type
Categorical selection.
Valid choice indicated by correspondence to outcome type and data structure. · Reliable across analysts trained in the framework.
Written interpretation of coefficients, odds ratios, hazard ratios, directions, units, and significance compared against correct statistical meaning.
- accurate statements of unit effects
- correct odds-ratio language
- proper handling of dummy variable references
Quality judged categorically (correct/incorrect/partial).
Validity assessed by expert review against statistical conventions. · Moderate; depends on analyst skill.
Count and appropriateness of diagnostic tests performed (Q-Q plots, residual plots, VIF, Brant-Wald, Schoenfeld residuals) prior to declaring results valid.
- diagnostic plots produced
- statistical assumption tests run
- documented assumption conclusions
Can be scored as proportion of relevant assumptions checked.
Valid when checks match the model's required assumptions. · Reliable when a standard diagnostic checklist is followed.
Values of R-squared/pseudo-R-squared, goodness-of-fit test p-values, and AIC, together with the number of retained input variables.
- R-squared / pseudo-R-squared values
- AIC values
- goodness-of-fit p-values
- F-statistic
Continuous metrics computed from model output.
Established statistical metrics with known interpretations. · Highly reliable; deterministic given model and data.
Power value computed via power analysis functions given assumed effect size, alpha, and sample size.
- computed power value
- required minimum sample size
- power curves
Probability between 0 and 1; targets typically 0.8-0.9.
Approximate due to unknown true effect sizes and measurement error. · Reliable computation but sensitive to assumed inputs.
Conclusions stated with significance support, correct interpretation, validated assumptions, and bounded scope to the population.
- significance-supported statements
- appropriately hedged generalization
- replicability
Assessed qualitatively and via replication.
Validity is the construct itself; assessed by peer review and replication. · Reliable when modeling workflow is sound and reproducible.
Adoption of model-informed recommendations and observable changes in people decisions or policies.
- stakeholder uptake of recommendations
- policy or practice changes
- reported decision improvements
Mixed: perceptual ratings and archival decision records.
Moderate; impact may be confounded by other factors. · Moderate; depends on tracking of decisions.
Self-assessment
Where would you like to improve?
This is a structured self-diagnostic built from the model — a mirror for reflection, not a validated psychometric scale. For validated measurement, see the instruments below.
1 = Strongly Disagree · 7 = Strongly Agree
Proposed measures — starter instruments where no validated one was found
Outcome Variable Specification Audit
proposed · not validatedRate each observable statement on the scale below.
- Every analysis plan states the measurement type (continuous, binary, nominal, ordinal, count, time-to-event) of each outcome before modeling begins
- The variable's coding scheme and category levels are documented and cross-checked against the stated measurement type prior to analysis
- Any deviation between the originally specified outcome type and the type actually modeled is logged with a written justification
Scale: 1–7 (Strongly Disagree → Strongly Agree). Average the item ratings. This proposed index has no validated cutoff.
Data Structure Documentation Index
proposed · not validatedRate each observable statement on the scale below.
- A data dictionary or codebook explicitly identifies all nesting or clustering levels (e.g., subjects within sites) before analysis begins
- Item-level or variable-level correlation structure is examined and reported to detect latent grouping or thematic clusters prior to model specification
- The final analytic dataset includes a documented schema showing hierarchical or repeated-measures structure that matches the modeling approach used
Scale: 1–7 (Strongly Disagree → Strongly Agree). Average the item ratings. This proposed index has no validated cutoff.
Regression Method Justification Protocol
proposed · not validatedRate each observable statement on the scale below.
- The chosen regression technique is documented with an explicit rationale tied to the outcome type and data structure identified beforehand
- Alternative candidate methods are listed and compared against diagnostic criteria before the final method is selected
- Model assumption checks (e.g., proportional odds, independence, distributional fit) are performed and recorded before results are finalized
Scale: 1–7 (Strongly Disagree → Strongly Agree). Average the item ratings. This proposed index has no validated cutoff.
Sources
- Handbook of Regression Modeling in People Analytics — Keith McNulty
The cheat sheet
Everything, on one page
One key takeaway from each section, with links to read more.
- Outcome Variable TypeClassify the outcome's measurement nature before opening any modeling software — it is the single decision that constrains all others.
- Data Structure and HierarchyGrouping hierarchy determines whether you need a mixed model; check the intraclass correlation before assuming independence.
- Regression Method SelectionLet outcome type and data structure narrow the method before personal preference enters the decision.
- Coefficient InterpretationAlways attach the coefficient's scale (log-odds, odds ratio, hazard ratio, raw units) to any spoken or written claim.
- Assumption ValidationRun the assumption checks specific to your model family, not a generic OLS residual scan applied to everything.
- Model Fit and ParsimonyAdjusted R-squared and AIC, not raw R-squared, are the metrics that reward economy alongside explanation.
- Statistical Power and Sample AdequacyPower is driven by events per predictor, so rare HR outcomes demand disproportionately large samples.
- Valid Statistical InferenceValid inference is a conjunction of conditions, not a single significant coefficient.
- Stakeholder Impact and Evidence-Based DecisionsTranslate statistics into the units and consequences the decision actually turns on.
Publication details
Consult the sources listed in this guide for further reading. Edition 1 · Updated 2026-08-19.