A call center employs 960 agents Every month 60 employees le

A call center employs 960 agents. Every month 60 employees leave the company and 60 new employees are hired. a. How long on average does an agent work for this call center? Average working time 16 months Suppose the cost of hiring and training a new agent is $1,200. The manager of this call center believes that increasing agents’ salaries would keep them working longer at the company. The manager wants to increase the average time that an agent works for the call center to 36 months, or three years. b-1. Use the calculated average working time at this call center to determine the current annual cost for hiring and training. Current annual cost $ 864000 b-2. Determine the new annual cost for hiring and training. New annual cost $ 480000 b-3. How much can the company save on hiring and training costs over a year? Annual saving $ 384000

Solution

A call center employs 960 agents. Every month 60 employees leave the company and 60 new employees are hired. a. How long on average does an agent work for this call center? Average working time 16 months Suppose the cost of hiring and training a new agent is $1,200. The manager of this call center believes that increasing agents’ salaries would keep them working longer at the company. The manager wants to increase the average time that an agent works for the call center to 36 months, or three years. b-1. Use the calculated average working time at this call center to determine the current annual cost for hiring and training. Current annual cost $ 864000 b-2. Determine the new annual cost for hiring and training. New annual cost $ 480000 b-3. How much can the company save on hiring and training costs over a year? Annual saving $ 384000

Answer :

Organizations : Call center

Employs = 960 agents

Every month 60 employees leave the company

60 new employees are hired

a. How long on average does an agent work for this call center?

Total Employees = 960

Employee leaving per month = 60

Average time of agent = 960 / 60

=16 months

---------------------------------------------------------------------------------------------------------------------------------------------------------------------Suppose the cost of hiring and training a new agent is $1,200

The manager of this call center believes that increasing agents’ salaries would keep them working longer at the company.

The manager wants to increase the average time that an agent works for the call center to 36 months, or three years.

b-1. Use the calculated average working time at this call center to determine the current annual cost for hiring and training.

Here average working time mentioned is 16 months .

60 employee are leaving per month.

In whole year ,

60 * 12 months = 720 Employee

Cost of hiring these 720 people

720 * 1200

=$ 864000

Annual Hiring cost = $ 864000

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b 2

Determine the new annual cost for hiring and training.

Here average working time mentioned is 36 months .

We consider 34 employees are leaving per month.(Approximate)

In whole year ,

34 * 12 = 408 Employee

Cost of hiring these 408 people

408 * 1200

=$ 489600

Annual Hiring cost = $ 480000 (Round up for simple calculation )

Current annual cost $ 864000

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b-3. How much can the company save on hiring and training costs over a year?

Previous cost = $ 864000   (1)

Present cost = $ 480000 (2)

Substraction of 1 - 2

Annual saving $ 384000