Correlation Analysis of Factors Affecting Firm Performance and Employees Wellbeing: Application of Advanced Machine Learning Analysis

Abstract

Given the importance of identifying key performance points in organizations, this research intends to determine the most critical intra- and extra-organizational elements in assessing the performance of firms using the European Company Survey (ECS) 2019 framework. The ECS 2019 survey data were used to train an artificial neural network optimized using an imperialist competitive algorithm (ANN-ICA) to forecast business performance and employee wellbeing. In order to assess the correctness of the model, root mean square error (RMSE), mean absolute percentage error (MAPE), mean square error (MSE), correlation coefficient (r), and determination coefficient (R2) have been employed. The mean values of the performance criteria for the impact of internal and external factors on firm performance were 1.06, 0.002, 0.041, 0.9, and 0.83, and the value of the performance metrics for the impact of internal and external factors on employee wellbeing were 0.84, 0.0019, 0.0319, 0.83, and 0.71 (respectively, for MAPE, MSE, RMSE, r, and R2). The great performance of the ANN-ICA model is indicated by low values of MAPE, MSE, and RMSE, as well as high values of r and R2. The outcomes showed that “skills requirements and skill matching” and “employee voice” are the two factors that matter most in enhancing firm performance and wellbeing.