A call center employs 1,000 agents. Every month 50 employees leave the company and 50 new employees are hired.
How long on average does an agent work for this call center? Suppose the cost of hiring and training a new agent is $1,000. 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. If an agent works for the call center 24 months on average, how much can the company save on hiring and training, and then determine the new annual cost for hiring and training.