Factor Analysis

Reduce correlated survey or assessment items into underlying factors.

• What themes drive engagement scores?
• Which competencies load on leadership potential?

• Clean employee event history
• Consistent definitions
• Adequate sample size

Extract factors from item correlation matrices; name factors from highest-loading items.

Identify engagement drivers from pulse survey factor scores by department.

Factor scores simplify action planning versus raw item noise.

Sample size requirements; factor naming subjectivity.