This is a question that was asked regarding human resources in evaluating a staffing process using yield ratios and cycle times.
Problem: Keepon Trucking received a order that will take 3 years to complete and requires the hiring of 100 new assemblers. The HR department implemented a special staffing process to fill the new vacancies. Applicants were recruited from 3 sources: newspaper ads, employee referrals and a local employment agency. All applicants were subject to a common selection and decision making procedure. All offer receivers were given the same terms and conditions in their job offer letters and there were no negotiations. All vacancies were filled.
After the 1st year Dexter Williams pulled together some data to attempt to determine how well the staffing process for the assembler jobs went. This was the only data that was kept for review
Method Applicants Offer receivers Start as Remain after
new hires 6 months
Newspaper
# of apps 300 70 50 35
Avg # of days 30 30 10 0
Employee Referral
# of apps 60 30 30 27
Avg # of days 20 10 10 0
Employment Agency
# of apps 400 20 20 8
Avg # of days 40 20 10 0
1) Determine the yield ratios (offer receivers/applicants,and new hires/applicants) time lapse or cycle times (days to offer, days to start) and retention rates associated with each recruitment source. (Please show how you got the answer for each)
2) What is the relative effectiveness of the 3 sources in terms of yield ratios, cycle times and retention times? (Be specific)
3) Give some possible reasons for the fact the 3 sources differ in their relative effectiveness.
4) What would you recommend that Dexter do differently int he future to improve his evaluation of the staffing process.