A call center employs 1,400 agents. Every month 50 employees leave the company a
ID: 428769 • Letter: A
Question
A call center employs 1,400 agents. Every month 50 employees leave the company and 50 new employees are hired. a. How long on average does an agent work for this call center? Average working time months Suppose the cost of hiring and training a new agent is $1,000. 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 48 months, or four years. b-1. Given the current average working time for agents at this call center, determine the current annual cost for hiring and training. Current annual cost b-2. Assuming the average time that an agent works for the call center is increased to 24 months, determine the new annual cost for hiring and training. New annual cost b-3. If the time an agent works for the call center is increased to 24 months on average, how much could the company save on hiring and training costs over a year? Annual saving $Explanation / Answer
1. the total number of employees are 1400, each month 50 employees are replacing, then the average time that an employee works for the firm is= 1400/50= 28 months, means if an employee join with the firm, he is going to work for next 28 months with the firm.
2. when the average time of worker increases from 28 months to 48 months, it helps the firm to minimize the hiring and traning costs. the new cost may be= (28/48)*100= 58.3% in the existing cost, i.e. $1000*58.3%= $583 (approximately)
3. if the worker only works for 24 months, then the new cost will be more than $1000. it will be (28/24)*100, it becomes $1,166 per employee
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