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Evaluate staffing process results using yield ratios

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This is a question that was asked about human resources in evaluating a staffing process using yield ratios and cycle times.

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

# 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

4) What would you recommend that Dexter do differently int he future to improve
his evaluation of the staffing process

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Solution Preview

Please see attached Excel file.


Yield ratios
Number of applicants 300 60 400
Offer receivers/applicants 0.233333 0.5 0.05
New hires/applicants 0.166667 0.5 0.05

Time Lapse
Days to apply 30 20 40
days to offer 30 10 20
days to start as new hires 10 10 10

Retention rate
Remain after 6 months/applicants 0.116667 0.45 0.02
Remain after 6 months/new hires 0.7 0.9 0.4

2) What is the relative effectiveness of the 3 sources in terms of yield ratios, cycle times and retention times?

In terms of number of applicants encouraged to apply, employment agencies are the most effective as evidenced by the most number of applicants - 400 as against 300 for newspaper ads and 60 for employee referrals. However, in terms of the percentage of applicants who passed the selection processes (e.g. application blank, tests, interviews, etc) and reached the stage when they ...

Solution Summary

The expert evaluates staffing process results using yield ratios for cycle times for Dexter Williams.