Introduction to Pivot Table

What Is a Pivot Table?

A pivot table is one of the most powerful tools you can use in Excel. It’s an easy and
simple way to summarize large data sets. Consequently, pivot tables allow you to
easily display, understand, and analyze numerical data.
Pivot tables are available not only in Excel but also in other programs such as
Google Sheets. They restructure and summarize complex data into tables that help
you answer questions surrounding said data.

Benefits of Using Pivot Tables

Pivot tables are amazing when creating reports and generating insights from huge
data sets. Instead of combing through the data manually and one by one, you can be
more efficient by using pivot tables to generate analytics.
More importantly, you’ll create reports backed by data — data that is easy to
understand for your target audience. A pivot table can group data into categories,
count the number of items in each category, and add the item’s value.
Here are more benefits you can get from using pivot tables:
 Simplicity. The most you have to learn when using pivot tables is using a drag-
and-drop tool. You don’t have to worry about complex operations or formulas.
 Speed. Because they’re easy to create, pivot tables are time-efficient. You can
further speed up your process by organizing data before putting them into the
table.
 Flexibility. Your data view isn’t limited to only one. Rather, you can quickly
rearrange how data is displayed to meet your needs. You can even clone a table
to get separate views.
 Accuracy. Results from pivot tables are generally accurate, provided you set it up
properly. Pivot tables also highlight potential problems in data sets, so you have
extra guidance when using them.
 Formatting. Need consistent number and style formatting? Pivot tables can do
that, too. On top of that, the consistency remains the same even when you
change data.
 Filtering. With pivot tables, you can filter data in many ways. You can define the
data sets you want to display in the table and vice versa. Visualizations and charts
associated with the data are also updated.
 Charts. If you have pivot tables, you can create pivot charts — the visual
representation of the tables. Kohezion, for instance, offers plenty of styles and
layouts to fit your needs.

Where Can I Use Pivot Tables?

Pivot tables’ usefulness is easy to understand: you have a large chunk of data, and
the tables help you turn the data set into useful reports and summaries.
Visualizations are available, too. The following are the best use cases for pivot
tables:
1. Run automatic calculations on summed or counted values
Pivot tables are efficient at performing calculations on large data sets. By
summarizing and organizing data, you can effortlessly compute sums, counts,
averages, and more.
This feature is perfect if your work requires you to deal with sensitive financial data.
For instance, you can benefit from pivot tables if you’re a financial analyst tallying
expenses or a sales manager assessing your business’ revenue. Pivot tables are
also great if you need to generate quick insights but don’t have the time to do
manual calculations.
Because pivot tables are dynamic, you can perform real-time adjustments as
changes happen to the underlying data. This ensures accuracy and efficiency in data
analysis and management.

Figure 1: Pivot table used to run automatic calculations on summed or counted values

2. Create percentages of totals

With pivot tables, you have a straightforward way of generating percentages of
totals. This lets you grasp the proportional contribution of each data category in the
data set.
This is perfect if you want to get a holistic view of the data. Marketers, for example,
find pivot tables useful when evaluating their campaign’s performance. They’re also
ideal for project managers assessing resource allocation.
Using pivot tables, you can transform absolute values into insightful percentages.
This improves your data interpretation and decision-making quality. On top of that,
you can speed up your workflow by ditching time-consuming manual percentage
calculations.

Figure 2: Pivot table used to create percentage of totals

3. Segment data by date, the user, or other variables and calculate totals
Pivot tables allow you to segment data effortlessly. This enables in-depth analysis
based on specific criteria such as date, user name, or other customizable variable.
With this feature, you can generate time-sensitive reports invaluable for assessing
trends, identifying patterns, and making informed decisions.
For example, if you’re a sales manager, you can analyze revenue by quarter. If
you’re an HR professional, you can analyze employee performance by department.
Project managers can track progress across different phases.
 Figure 3: Pivot table used to segment data

4. Automatic calculations for organized data [impossible in Excel]

Pivot tables offer dynamic interfaces that let you arrange information into
customizable rows and columns.
This is beyond Excel’s basic features. As a result, pivot tables allow you to do
complex calculations that would otherwise be cumbersome or tedious to perform
manually.

Figure 4: Pivot table used for automatic calculations of organized data

How Do Pivot Tables Work?

Pivot tables are like reports that offer an interactive view of your data without
needing complex formulas or effort. They help you look at data from different
perspectives. With pivot tables, you can group data into categories and break them
into relevant types. You can even build charts with them.
Filters are also available if you need to include or exclude specific categories and
variables. Pivot tables are called “pivot” tables because they let you rotate or pivot
data in the table to view it from another perspective. You don’t add or subtract
anything from the table — rather, you reorganize data to uncover useful insights.
Creating an efficient pivot table is worth its weight in gold. However, getting there is
half the battle for non-technical users. You’re not making a pivot table to generate
just one report. Instead, you should use pivot tables to summarize and filter data to
tell different stories. Don’t be afraid to create as many pivot tables as you need.
Because of its usefulness for analysis, you can answer many critical business
questions using a pivot table. Spreadsheets are one of the most popular solutions to
create pivot tables. However, the best tools don’t require complicated formulas. You
might even have to start all over again every time you need to organize data
differently.
Finding a program with a drag-and-drop option to move fields around is a convenient
feature.

How to Build a Pivot Table in Excel?

As mentioned, using Excel spreadsheets is one of the most common ways to create
pivot tables. Here are the steps you need to take:
Step 1. Enter Your Data into Excel
Enter your data into the spreadsheet and ensure that each column has a clear
heading. Organize the data in a tabular format — remember that pivot tables rely on
structured data to generate useful insights. Make sure you’ve included all the
information you wish to analyze using the pivot table.
Step 2. Format Your Excel Spreadsheet as a Pivot Table
After entering data, format your spreadsheet appropriately to set the stage for the
pivot table. Click a target data range (or click CTRL+A to select all), navigate to the
Insert tab, and select PivotTable. Confirm that the range is accurate and decide if
you want the pivot table should be placed in a new worksheet or an existing one.
Click Ok.
Step 3. Build Your Pivot Table Skeleton
After establishing the pivot table framework, drag and drop variables into the proper
box. You’ll see four boxes:
 Filters
 Columns
 Rows
 Values
You can re-arrange variables to achieve different outputs, depending on what
insights you want to get. The “values” area helps perform calculations, while the
rows and columns areas are for the horizontal and vertical axes respectively.
Step 4. Work with Your Data
After completing step three, start refining and customizing the pivot table to gain
more valuable insights. Experiments with arrangements, filters, and summary
functions, which include:

 Sum
 Average
 Count
Explore different perspectives and patterns in your data using Excel’s drag-and-drop
interface. Also, try formatting the table to enhance its visual appeal and make it more
accessible for presentations or reports.

Why Assessing Pivot Tables is Important in the Hiring Process

Assessing a candidate's ability to work with pivot tables is crucial in the hiring
process for several reasons:
1. Data Analysis Skills
Proficiency in pivot tables reflects a candidate's ability to analyze and make sense of
large sets of data efficiently. By evaluating their understanding of pivot tables, you
can ensure that they possess the data analysis skills necessary for the role.
2. Decision-Making
Pivot tables allow professionals to extract valuable insights from complex data,
enabling informed decision-making. Assessing a candidate's pivot table skills
ensures that they can contribute to data-driven decision-making processes within
your organization.
3. Streamlining Workflow
Efficiently organizing and summarizing data is essential for streamlining workflow.
Candidates who can effectively use pivot tables can work more efficiently, saving
time and effort when dealing with large amounts of information.
4. Identifying Patterns and Trends
Pivot tables enable users to identify patterns and trends within datasets easily. By
assessing a candidate's ability to work with pivot tables, you can determine if they
possess the skills needed to uncover valuable insights and trends that can drive
business success.
5. Collaboration and Communication
Proficiency in pivot tables often goes hand in hand with strong communication and
collaboration skills. Candidates who can effectively use pivot tables can present their
findings in a clear and concise manner, making it easier to collaborate with team
members and stakeholders.
Incorporating an assessment of pivot table skills in your hiring process can ensure
that you are selecting candidates who have the necessary data analysis skills,
decision-making capabilities, and the ability to streamline workflow and identify
valuable patterns and trends in complex datasets.

Practical Applications of Pivot Tables

Pivot tables are widely used across various industries and sectors for a multitude of
data analysis tasks. Here are some practical applications of pivot tables:
1. Sales and Marketing Analysis
Pivot tables enable sales and marketing teams to analyze and summarize sales
data, customer demographics, and marketing campaign results. By organizing and
summarizing this data, businesses can gain insights into sales trends, customer
behaviors, and the effectiveness of marketing strategies.
2. Financial Analysis
In finance departments, pivot tables are utilized to analyze financial data, such as
revenue, expenses, and cash flow. By summarizing financial information,
organizations can identify patterns, perform budget analysis, and track financial
performance across different time periods or departments.
3. Human Resources Management
Pivot tables assist human resources departments in managing employee data,
including performance evaluations, training records, and payroll information. HR
professionals can use pivot tables to summarize employee data based on various
factors like job titles, departments, or performance metrics, providing valuable
insights for decision-making.
4. Supply Chain and Inventory Management
By analyzing inventory and supply chain data, businesses can optimize their
procurement and inventory management processes. Pivot tables are employed to
summarize data related to stock levels, order fulfillment, supplier performance, and
demand forecasting, enabling businesses to make informed decisions to streamline
operations.
5. Research and Data Analysis
Researchers in various fields use pivot tables to analyze large datasets efficiently.
By summarizing and cross-referencing data, researchers can identify correlations,
patterns, and trends, facilitating data-driven decision-making and contributing to the
advancement of knowledge in their respective fields.
6. Project Management
Project managers can use pivot tables to track project progress, monitor resource
allocation, and analyze project costs. By summarizing data related to tasks, team
members, and project milestones, project managers gain insights into project
performance, enabling timely adjustments and informed decision-making.
These are just a few examples of how pivot tables are utilized in real-world
scenarios. With their versatility and ability to transform complex data into actionable
insights, pivot tables serve as a valuable tool for data analysis and decision-making
across various industries and functions.

Roles that Require Good Pivot Tables Skills

Proficiency in pivot tables is a valuable skill set that can benefit individuals in various
roles across different industries. Here are some roles that require good pivot tables
skills:
 Data Analyst: Data analysts work extensively with data and use pivot tables to
organize, analyze, and gain insights from large datasets. Proficiency in pivot
tables is essential for this role to perform data-driven analysis and generate
meaningful reports.
 Data Scientist: Data scientists utilize pivot tables to explore and summarize
data, identify patterns, and develop statistical models. Strong pivot tables skills
enable data scientists to manipulate data efficiently and extract valuable insights.
 Data Engineer: Data engineers often use pivot tables to transform and
aggregate data in various formats. Proficiency in pivot tables allows data
engineers to manipulate data sets effectively, ensuring data quality and integrity.
 Insights Analyst: Insights analysts rely on pivot tables to transform and analyze
data to uncover trends, patterns, and actionable insights. Proficiency in pivot
tables is crucial for insights analysts to derive valuable findings from complex
datasets.
 Marketing Analyst: Marketing analysts leverage pivot tables to analyze
marketing campaign data, customer behavior, and performance metrics.
Proficiency in pivot tables assists marketing analysts in deriving actionable
insights to optimize marketing strategies.
 Financial Analyst: Financial analysts use pivot tables to analyze and
summarize financial data for budgeting, forecasting, and financial reporting
purposes. Proficiency in pivot tables enables financial analysts to efficiently
manipulate and analyze financial information.
 GIS Data Analyst: GIS data analysts employ pivot tables to analyze geospatial
data, summarize information, and generate maps and visualizations. Proficiency
in pivot tables allows GIS data analysts to perform data analysis tasks efficiently.

These are just a few examples of roles that require good pivot tables skills.
Developing a strong understanding of pivot tables can significantly enhance
performance in these positions and contribute to data-driven decision-making and
analysis.
References
Alooba. (2024). Pivot Tables [online]. Available from:
https://www.alooba.com/skills/concepts/spreadsheets/pivot-tables/#:~:text=Research
ers%20in%20various%20fields%20use,knowledge%20in%20their%20respective
%20fields. [accessed 8 January 2025].
Tremblay, T. (2022). Mastering Pivot Tables: Examples and Practical Uses [online].
Available from: https://www.kohezion.com/blog/what-is-a-pivot-table-examples-and-
uses/ [accessed 8 January 2025].