Job: Assistant Store Manager

A large department store is located in two major parts of the country: the Midwest and the Southwestern United States. The store employs 700 assistant managers. The store has organized its operations based upon these two geographical regions. Each region runs independently of the other. The data below are used to assess turnover for each division.

Employee Information for assistant store managers

	Midwest Division	Southwestern Division
Number of full-time employees on July 1st	500	200
Number of employees that were terminated this year	100	30
Number of employees that quit/retired this year	30	20

Turnover costs

	Est cost per opening in Midwest Division	Est cost per opening in Southwestern Division
Hiring Process Costs
Review & revise job description	$40	$50
Post opening on jobs.com	$1000	$1000
Post opening in classifieds	$1200	$1600
Review resumes	$60	$80
Conduct interviews	$200	$150
Conduct background checks	$100	$120
New hire processing	$100	$100
Training Costs
Orientation	$200	$250
Computer system training for new hires	$200	$300
Departmental training	$200	$150
Separation Costs
Exit interview	$50	$50
Overtime costs	$250	$250

[1] Which division has the higher voluntary turnover rate?

Midwest VTR = __________ Southwestern VTR = __________

[2] Which division has the higher involuntary turnover rate?

Midwest IVTR = __________ Southwestern IVTR = __________

[3] Which division has the overall higher turnover rate?

Midwest TR = __________ Southwestern TR = __________

[4] How much does each division spend on turnover for every opening?

Midwest Turnover cost per opening = __________

Southwestern Turnover cost per opening = __________

[5] What was the total turnover cost for each division for the given year?

Midwest Total Turnover cost = __________

Southwestern Total Turnover cost = __________

[6] If you were the VP of HR, what would this data indicate to you?