Points: 10©2006 Capsim Management Simulations, Inc.® Chester\'s turnover rate fo
ID: 2789303 • Letter: P
Question
Points: 10©2006 Capsim Management Simulations, Inc.® Chester's turnover rate for this year is 6.25%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Chester plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Chester next year?
d) $171,577
Select: 1 a) $223,049 b) $205,892 c) $188,734d) $171,577
HRITQM Report IN BR Mark Hanson December 31, 201 HUMAN RESOURCES SUMMARY Baldwin 472 472 549 549 390 160 Needed Complement 788 788 413 375 619 619 215 0.0% 1st Shift Complement 2nd Shift Complement 183 Overtime% Turnover Rate New Employees 0.1% 6.9% 0.0% 8.0% 0.0% 6.2% 113 10.0% 172 28 S5,000 Recruiting Spend Training Hours Productivity Index S5,000 123.2% $677 40 113.6% 107.5% 100.0% $62 $32 Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $140 $1,261 $1.726 $132 $858 $378 S1,368 $879 $1,556 Labor Contract Next Year S28.15 S28.15 S28.15 S28.15 Profit Sharing Annual Raise Starting Negotiation Position Profit Sharing Annual Raise Ceiling Negotiation Position Profit Sharing Annual Raise Adjusted Labor Demands Profit Sharing Annual Raise Strike DaysExplanation / Answer
Recruiting Spend (R1) for the next year can be calculated using the equation
Where B is the Base Line Spend= $ 1000
A is the additional next year spend = $ 500
N is the New Employees for the next year = Total employees * turnover rate
N = 549 *0.0625 = 34.312
Substituting in the Formula R1 = (1000+5000+500)*34.312
= $ 223049