A call center employs 1,500 agents. Every month 60 employees leave the company a
ID: 459468 • Letter: A
Question
A call center employs 1,500 agents. Every month 60 employees leave the company and 60 new employees are hired.
Suppose the cost of hiring and training a new agent is $1,200. The manager of this call center believes that increasing agents’ salaries would keep them working longer at the company. The manager wants to increase the average time that an agent works for the call center to 48 months, or four years.
Use the calculated average working time at this call center to determine the current annual cost for hiring and training.
Determine the new annual cost for hiring and training.
How much can the company save on hiring and training costs over a year?
A call center employs 1,500 agents. Every month 60 employees leave the company and 60 new employees are hired.
Explanation / Answer
a)R=60 people/month
I-1500 people
Average working time=throughput time=I/R=1500/60=25 months
b)1)Current annual cost for hiring & training
Throughput rate=60people/month=60*12 people /year=720 people/year
Annual hiring & training cost=720*1200$=864000$
b)2)New annual cost for hiring & training
Average working time=throughput time=48 months
throughput ratio=R=I/T=1500/48 month=31.25 per month=375 per year
Annual hiring & training cost=375*1200$=450000%
b)3)Annual saving on hiring & training cost =(864000-450000)$=414000$
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