in your formula you type 'E2 Employees#' while I can see that your dimension is called 'E2 Employee#'. Either add letter 's' to your dimension name or type 'E2 Employee#' in your formula.
Of course, double check if you set-up your hierarchy correctly as indicated by @Misbah1
It doesn't look like that you have not set up Employee hierarchy correctly or haven't set it up at all. E2 should be parented by E1 Departments in the configure tab of the list0
Thank you, it worked0