Compared to other methods, these two seem to yield the best results compared to cost and also help with lowering the turnover rate below industry standards. The job service method also seems promising with slightly higher than average cost with similar retention rates as referrals, the very low hiring rate makes it very costly to use as a primary source of recruiting. On the other hand, the media and kiosk methods should be reevaluated or considered for deletion, as in the Southern Oregon area, for the following reasons: Low hiring and retention rates
Low average cost per hire could amount to double the stated amount if retention rate is considered High fixed cost and cost per hire with kiosks
Higher cost per 1 year survival will hurt company financials long-term For in-depth analysis on each method within each region, please see Attachment 1 that follows. Attachment 1 – In-Depth Analysis
Western Washington: Management uses four different types of recruiting methods being media, referrals, kiosks and job service. Referrals cost the most money in total cost, but it’s apparently the most important method of recruiting for the region. This is the strongest method because it is the number one source of hired applicants and it carries the lowest cost per hire along the second highest 1 year retention rate. Also, job services provide a significantly smaller number of hired employees but they have a highest retention rate, the lowest total cost besides referrals, and one of the lowest cost per hire. Kiosks, although having a low cost per hire, the retention rate is almost the industry standard, which is what we are trying to eliminate. Media should also be eliminated or restructured to aid other methods in the region since it has the highest cost per hire and the lowest retention rate. This could serve as potential savings in recruiting for the company. Eastern Washington: Uses three recruiting methods, Media, Referrals, and Kiosk. Even though referrals have higher applicant and retention rates, over half the applicants are not qualified for the position.
The Term Paper on Cost Allocation Method 2
Cost allocation is a method to determine the cost of services provided to users of that service. It does not determine the price of the service, but rather determines what the service costs to provide. It is important to determine the cost allocation of the services, in order to determine a justifiable fee/charge/tax for those services. Included in cost allocation are direct, indirect, and ...
To be considered a candidate an applicant must posse the basic qualifications so we have to find a way to encourage employees to refer only those qualified for the position in order to strengthen this method. Although they already have high retention rates and low cost hire, they can save more money if less time is spent sifting through unqualified applicants. Since kiosks happen to have a higher retention and qualification rates, along with lower variable cost, this method can be supplemented by media ads to encourage applicants to apply at the stores, increasing the number of applications processed at the kiosks and lowering the fixed cost and therefore the high cost per hire. Again, media seems to be highly ineffective when it comes to retention rate even though the cost per hire is lower. In the long run, the lowest cost per hire can be detrimental if the turnover rate is not decreased. Northern Oregon: Also uses three types of recruiting methods; media, agencies, and kiosks. This region should consider getting rid of their media method and implementing a referral program.
Although Media has the lowest total cost and low cost per hire, it brings in a lower number of hired applicants and has a low retention rate. In lieu of media recruiting, the referral program should be implemented since it is working very well for other regions of the company, seems to have a low cost per hire, and could bring Northern Oregon a much larger pool of qualified applicants with high retention rates. Kiosks seem to have the higher cost per hire and higher than average retention rates, which I believe can be highly attributed to the fixed cost, but if realistic job previews and a short test for certain qualities like customer service and empathy, between other, are integrated to this method it can have the potential to achieve higher hiring and retention rates. Agencies lead the way in this region with the highest qualification, hiring and retention rates, but it has a high cost per hire. However if we compare the 1 year survival cost, then it is clear as to why this method is still used. Overall, it may seem like a high cost to pay for each hire, but if you are virtually incurring that cost once a year, then I think it is worth the investment.
The Term Paper on Analysis Of High Turnover Rate
Analysis of High Turnover Rate Introduction High turnover rate of minorities and female employees has become a serious issue in the United States. Even though many ethnic races form this country, male Anglo-Saxons dominate the majority of the workforce. It is not uncommon for minority and female employees to leave their company after only working for a few years. Why has this behavior become a ...
Southern Oregon: This region also uses three types of recruiting methods, referrals, kiosk and agencies. All three have a fairly consistent amount of applicants, hired employees and they have similar one year retention rates. All of these methods have similar costs as well. This means that Southern Oregon does a good job of mixing recruiting methods and attracting talent by different means. Referrals seem to lead the way in lower total cost and cost per hire. The kiosk method should be re-evaluated since it carries the highest cost, total and per hire, of the three; it will possibly have to be eliminated or replaced by an alternative method or simply its resources being distributed among the other two methods. By reducing this cost Southern Oregon could save a lot of money on their recruiting efforts. Agency use has produced slightly better results than referrals at a slight higher cost per hire, but I would mention again that slightly higher upfront cost would benefit the region as the turnover rate decreases.
