Baldwin's turnover rate for this year is 6.27%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Baldwin plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Baldwin next year

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Business

27 January, 12:21

Baldwin's turnover rate for this year is 6.27%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Baldwin plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Baldwin next year

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Haiden · Answer 1

Total recruiting cost = $207,850.5

Explanation:

Recruiting spend (R1) for next year can be calculated using the equation

R1 = (B + R0 + A) x N, where

B is baseline spend = $1000

R0 is current year recruits spend = $5000

A is additional next year spend = $500

N is number of new employees for next year = total employees this year x turnove rate

N = 510 x 0.0627 = 31.977

Substituting the values, we get

R1 = (1000 + 5000 + 500) x 31.977 = $207,850.5