Problem
A call center employs 1,425 agents. Every month 57 employees leave the company and 57 new employees are hired.
I. How long on average does an agent work for this call center? What is the average working time?
Suppose the cost of hiring and training a new agent is $1,140. 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 36 months, or three years.
II. Given the current average working time for agents at this call center, determine the current annual cost for hiring and training. What is the annual cost?
III. Assuming the average time that an agent works for the call center is increased to 36 months, determine the new annual cost for hiring and training. What is the annual cost?
IV. If the time an agent works for the call center is increased to 36 months on average, how much could the company save on hiring and training costs over a year? What is the annual savings?