Question: Are the calculated benefits of reduced turnover sufficient to justify
ID: 2743553 • Letter: Q
Question
Question:
Are the calculated benefits of reduced turnover sufficient to justify the $680.000 in increased costs associated with the expansion of the Human Resource Management Department?Would your answer be the same if “reduced productivity during the learning period” was excluded from the analysis?
Annual Turnover Rate by Category for Years One through Four:
Personnel Categories
One
Two
Three
Four
Executive (n=127)
12.8
11.5
9.2
8.3
Physician (n=367)
18.1
17.6
17.9
15.6
Other Professional (n=615)
22.6
22.1
18.3
15.6
Nonprofessional (n=804)
29.0
26.3
27.1
24.3
Totals (n=19.3)
23.8
22.3
21.3
18.8
Personnel Category
Turnover Costs
All Categories
Executive
Physician
Other Professional
Non-professional
(n=1913)
(n=127)
(n=367)
(n=615)
(n=804)
Separation Costs:
Exit Interviews
50.73
62.50
73.00
51.00
38.50
Administrative Costs
119.27
127.00
132.50
116.00
114.50
Separation Pay
348.01
2254.00
1034.00
0.00
0.00
518.01
2443.50
1239.50
167.00
153.00
Replacement Costs:
Job Advertisement
1346.49
1805.00
2416.50
1127.50
953.00
Pre-Employment Administration
353.80
405.00
416.50
386.50
291.00
Entrance Interviews
324.86
486.00
724.50
284.00
148.00
Assessment Testing
271.69
382.50
695.00
214.50
105.00
Staff Time
249.00
417.50
522.00
212.00
126.00
Travel/Moving Expenses
293.68
1215.50
1110.50
0.00
0.00
Processing New Employees
87.50
87.50
87.50
87.50
87.50
Medical Examinations
175.00
175.00
175.00
175.00
175.00
3101.50
4974.00
6147.50
2487.00
1855.50
Training Costs
Informational Literature
80.00
80.00
80.00
80.00
80.00
Formal Training
147.53
340.00
516.50
35.00
35.00
On-The-Job Training
68.15
0.00
0.00
212.00
159.50
295.68
420.00
596.50
327.00
274.50
Reduced Productivity
during Learning Period
3133.37
4000.00
6500.00
3452.00
1215.50
Total
7048.56
11837.50
14483.50
6433.00
3528.50
Department Budget per Year
Budget Cost
One
Two
Three
Four
Salaries and Benefits
110,000
233,000
288,000
324,000
Equipment and Supplies
24,000
39,000
48,000
57,000
Communications
41,000
62,000
73,000
81,000
Totals
175,000
334,000
409,000
462,000
Annual Turnover Rate by Category for Years One through Four:
Personnel Categories
One
Two
Three
Four
Executive (n=127)
12.8
11.5
9.2
8.3
Physician (n=367)
18.1
17.6
17.9
15.6
Other Professional (n=615)
22.6
22.1
18.3
15.6
Nonprofessional (n=804)
29.0
26.3
27.1
24.3
Totals (n=19.3)
23.8
22.3
21.3
18.8
Explanation / Answer
No, they are not justified financially but it all depends upon the managment if they seek this as an important step for the company's future based on the needs and the new options which the company assumes as important due to increased human power requirements in the future.
Annual Turnover Rate by Category for Years One through Four: Personnel Categories One Two Three Four Executive (n=127) 12.8 11.5 9.2 8.3 Physician (n=367) 18.1 17.6 17.9 15.6 Other Professional (n=615) 22.6 22.1 18.3 15.6 Nonprofessional (n=804) 29 26.3 27.1 24.3 Totals (n=19.3) 23.8 22.3 21.3 18.8 Turnover Costs All Categories Executive Physician Other Professional Non-professional (n=1913) (n=127) (n=367) (n=615) (n=804) Separation Costs: Exit Interviews Administrative Costs 119.27 127 132.5 116 114.5 Separation Pay 119.27 127 132.5 116 114.5 Replacement Costs: Job Advertisement Pre-Employment Administration Entrance Interviews Assessment Testing Staff Time Travel/Moving Expenses Processing New Employees Medical Examinations 0 0 0 0 0 Training Costs Informational Literature Formal Training On-The-Job Training Reduced Productivity during Learning Period Total 119.27 127 132.5 116 114.5 Department Budget per Year Budget Cost One Two Three Four Salaries and Benefits 110,000 233,000 288,000 324,000 Equipment and Supplies 24,000 39,000 48,000 57,000 Communications 41,000 62,000 73,000 81,000 Totals 175,000 334,000 409,000 462,000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.