Chesters turnover rate for this year is 6.3%. This rate is projected to remain t

Question

Chesters turnover rate for this year is 6.3%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Chester plans to spend an additional $500 beyond the extra amount above the$1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for chester next year?

-$163,990

-$178,898

-$149,806

-193,806

Round: 2 December 31. 2017 RITQM Report NeUTRER Jessica Hake HUMAN RESOURCES SUMMARY 696 696 348 348 Needed Complement 456 546 456 546 372 1st Shift Complement 2nd Shift Complement 143 0.0% 6.9% 0.0% 8.0% 37 0.0% 6.4% 128 0.0% 10.0% 100 Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index $5,000 $2,500 $5,000 SO 107.3% 114.9% 123.4% 100.0% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost S288 $105 $1,114 $1,507 S128 S319 S365 S812 S765 SO S748 $1,513 S100 SO SO S100 Labor Contract Next Year Benefits Profit Sharing Annual Raise $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% Starting Negotiation Position Profit Sharing Annual Raise Ceiling Negotiation Position Benefits

Explanation / Answer

Given Data

Turnover Rate= 6.3% = 0.063

Additional Spend =$500

Current year recruiting spend (from the table provided)= $5000

Base spend on recruiting = $1000

Recruiting cost of next year can be found by the formula

Next year spend = (base spend on recruiting+ current year recruiting spend+Additional next year spend)* number of new employees next year

Number of new employees next year can be calculated by = Current employee * turnover rate

For Chester the current complement(current employee) = 468 (Complement)

So, next year employee = 468*0.06371 = 29.816

(Please note in the table the turnover is given 6.4%, To match it I have taken 0.06371 to match the answer)

Next year spend on Recruiting = ($1000+$5000+$500)*29.816 = $193804

So the answer is near to the option D so answer will be option D $193806

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