A call center employs 1,100 agents. Every month 55 employees leave the company a
ID: 459504 • Letter: A
Question
A call center employs 1,100 agents. Every month 55 employees leave the company and 55 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 $1,100. 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 24 months, or two years. b-1. Use the calculated average working time at this call center to determine the current annual cost for hiring and training. Current annual cost $ b-2. Determine the new annual cost for hiring and training. New annual cost $ b-3. How much can the company save on hiring and training costs over a year? Annual saving $
Explanation / Answer
a. How long on average does an agent work for this call center? Average working time months
R = 55 people / month
I = 1,100 agents
Average working time = I / R = 1100 / 55 = 20 months
Suppose the cost of hiring and training a new agent is $1,100. 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 24 months, or two years. b-1. Use the calculated average working time at this call center to determine the current annual cost for hiring and training
Hiring cost = $1,100
24 month
Current annual cost for hiring
Throughput Rate = 55 people/month = 660 people / year
Annual hiring and training cost = 660*1100 =$ 726,000
New annual cost for hiring and training:
Average working time = Throughput Time = 24 months = 2 years
Throughput Rate è R= I/T = 1100 people / 2 years = 550 people/year 45.83 per month
Annual hiring and training cost is 550 (1100) = $605,000
Annual saving on hiring and training cost is $ 726,000 - $605,000 = $ 121,000
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