1. Simpson Staffing Company, founded 10 years ago by Suzy Simpson, recently completed a study of its employee hiring and retention over the last two years. Suzy is keen on using the results of this study in determining how to hire the additional 25 employees she needs to have at the end of two years from now. In the study, she determined that it costs $2,500 on average to recruit a new employee and $1,500 to onboard them successfully. She primarily hires from Lipscomb and Belmont, along with a handful of other universities. From her study, she found that 50% of those she offered from Lipscomb came to work for her and that 90% of these folks were still with her firm 2 years after hiring. However, for the other universities only 25% accepted her job offers and only 70% of these folks were around after 2 years.

      

Although she would love to get all her employees from Lipscomb, she has determined that, during her hiring window, there would only be 20  graduates from Lipscomb who would meet her specific job criteria. In order to have 25 new employees two years from now, how much should she budget for the hiring and onboarding process, assuming that she hires enough people to net 25 at the end of two years and that all new hires stay through the two-month onboarding period? How many non-Lipscomb people would she need to offer to hit her hiring targets?

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Answer To calculate the budget for hiring and onboarding processes and determine the number of nonLi... View the full answer