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A call center employs 1,600 agents. Every month 40 employees leave the company and 40 new employees are hired.
a. How long on average does an agent work for this call center?
Suppose the cost of hiring and training a new agent is $800. 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 48 months, or four years.
b-1. Given the current average working time for agents at this call center, determine the current annual cost for hiring and training.
b-2. Assuming the average time that an agent works for the call center is increased to 24 months, determine the new annual cost for hiring and training.
b-3. If the time an agent works for the call center is increased to 24 months on average, how much could the company save on hiring and training costs over a year?
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