hiring new employees pp. 424-426 13-1 section. section copyright © glencoe/mcgraw-hill mba, section...
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Hiring New Employees pp. 424-42613-1SECTIONSECTION
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 2 of 16
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Key Words to KnowKey Words to Know
recruiting (p. 424)
The act of soliciting qualified people to work for a company.
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 3 of 16
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Total = Advertising + Interviewing + HiringRecruiting Expenses Expense Expenses Cost
FormulaFormula
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 4 of 16
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Taliban Manufacturing Company is searching for a person to head its production department.
The personnel department placed advertisements for a total cost of $6,495, and employed Empire Executive Search Company to locate candidates.
Example 1Example 1
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 5 of 16
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Empire recommended Alice Welch, Tomas Valdez, and Cleveland Adams. Taliban paid for the candidates travel expenses (i.e., transportation, lodging, and meals) for interviews.
Alice Welch Total travel expenses: $517
Tomas Valdez Total travel expenses: $735
Cleveland Adams Total travel expenses: $674
Example 1 (cont.)Example 1 (cont.)
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 6 of 16
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After the interviews, Taliban hired Cleveland Adams at an annual salary of $154,900.
Taliban paid these expenses to hire him.
Moving expenses $3,600
Sale of home (real estate broker’s fee) $9,470
Empire’s fee (25 percent of Adams’s first salary) $38,725
Example 1 (cont.)Example 1 (cont.)
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 7 of 16
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Step: Find the total recruiting cost.
Advertising + Interviewing + HiringExpenses Expenses Expenses
$6,495 + ($517 + $735 + $674) + ($3,600 + $9,470 + $38,725)
$6,495 + $1,926 + $51,795 = $60,216
Example 1 AnswerExample 1 Answer
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 8 of 16
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A financial services firm searched and found a senior-level investment banker. Advertising for the position totaled $12,500.
The firm narrowed the search down to 3 finalists. It spent $3,890 on interviewing expenses.
Example 2Example 2
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 9 of 16
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It decided to hire Jane McNally.
The firm paid $5,000 in moving expenses and a 6 percent realtor’s fee on the selling price of her home.
The home sold for $348,000.
What is the total recruiting cost?
Example 2 (cont.)Example 2 (cont.)
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Copyright © Glencoe/McGraw-Hill MBA, Section 13- 1, Slide 10 of 16
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Step: Find the total recruiting cost.
Advertising + Interviewing + HiringExpenses Expenses Expenses
$12,500 + $3,890 + [$5,000 + (6% × $348,500)]
$12,500 + $3,890 + [$5,000 + $20,910]
$12,500 + $3,890 + $25,910 = $42,300
Example 2 AnswerExample 2 Answer
425: 1-17