Recruiting a medical technologist for a hospital laboratory is a multistep process that includes the fol- — jpny and Process lowing activities. Improvements Hourly Hours Recruitment (LO I, 4)

Recruitment Activity Personnel Rate Spent Cost Review need to retain position HR director* $40 4 $ 160 Revise job description as needed HR analyst 15) 8 120 Assess labor trends and compensation HR director 40 8 320 Prepare and post job advertisement HR analyst 15 8 120 Screen applications, verify credentials HR analyst 15 WZ 180 Schedule personal interviews HR analyst 15 6 90 Conduct personal interviews Lab director 60 12 720 HR director 40 6 240 Select finalist and make offer Lab director 60 2 120 HR director 40 1 40 Process new employee paperwork HR analyst 15 4 60 Pay relocation expenses for new employee as needed 1,000 Provide orientation and training for new employee HR analyst 15 4 60 Lab director 60 2 120 Technician 30 40 1,200 Total recruitment cost $4,550

*HR refers to the Human Resources Department.

Required

a. _ If the hospital did not need to replace a medical technician, would it save these recruitment costs?

Explain.

b. The laboratory customers are physicians who request tests and patients who are tested. Which of these recruitment activities would customers regard as value added or non-value added? What is the ratio of the cost of non-value-added to value-added activities?

c. Write a report recommending improvements to increase the human resources department’s proportion of value-added activities.