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Using the following information to answer the questions. Two years ago, a new Re

ID: 407554 • Letter: U

Question

Using the following information to answer the questions. Two years ago, a new Recruitment Manager was hired at Badger Care, a transportation services company specializing in the transportation of disabled individuals. She began to track recruitment and hiring statistics and found that over the last two-year period, Badger Care had the following historical record:

Total Applicants

Meets Minimal Quals.

Phone

Interviewed

Interviewed

Job Offer

Accepted Job

6 Month Survival

323

259

115

52

40

37

26

Badger Care, needs to hire 20 new drivers by the end of the year. What number should they target for recruitment (i.e., how many applicants should they try to obtain)?

B. How many phone interviews should they be prepared to hold?

C. How many of those 20 drivers can they expect to remain drivers after 6 months?

D. Badger Care found that running a large newspaper ad for one week costs about $3000 and typically results in 282 applicants and 13 job acceptances. However, paying employees a referral bonus of $150 for each applicant results in about 30 applicants and 28 job acceptances. What are the respective costs per new hire for these sources of recruitment?

Total Applicants

Meets Minimal Quals.

Phone

Interviewed

Interviewed

Job Offer

Accepted Job

6 Month Survival

323

259

115

52

40

37

26

Explanation / Answer

(A)

The probability of accepting the jobs = 37 / 323 = 0.1146

If 20 acceptance is required, the number of applicants should be = 20 / 0.1146 = 175 (rounded off)

(B)

Proportion of phone interviews = 115 / 323 = 0.356

So, the number of phone interview needed for 175 applicants = 175 x 0.356 = 62 (rounded off)

(C)

The probability of 6 month survivals given the job is accepted = 26 / 37 = 0.70

So, out of 20 drivers, 6 month survivors will be = 20 x 0.70 = 14 (rounded off)

(D)

Newspaper ad

Total spend = $3,000

Accepted = 13, So, cost per new hire = $3000 / 13 = $230.8 per new hire

Referral bonus

Total spend = 30 x 150 = $4,500

Accepted = 28, So, cost per new hire = $4500 / 28 = $160.7 per new hire