Tanglewood Case 3 Analysis
Executive Summary
The methods used by Tanglewood vary from each region. Our studies have concluded that referral is one of the most effective methods of recruiting in the Washington region and agency use in the Oregon region because of the following reasons:
Recruiting
Average 1 Year Retention Rate is 71%
Average Cost per Hire is $3,604.81
Average Cost per 1 Year Survival is $5,050.95
Agency
Average 1 Year Retention Rate is 90%
Average Cost per Hire is $4,712.16
Average Cost per 1 Year Survival is $5,249.48
Compared to other methods, these two seem to yield the best results compared to cost and also help with lowering the turnover rate below industry standards. The job service method also seems promising with slightly higher than average cost with similar retention rates as referrals, the very low hiring rate makes it very costly to use as a primary source of recruiting. On the other hand, the media and kiosk methods should be reevaluated or considered for deletion, as in the Southern Oregon area, for the following reasons:
Low hiring and retention rates
Low average cost per hire could amount to double the stated amount if retention rate is considered
High fixed cost and cost per hire with kiosks
Higher cost per 1 year survival will hurt company financials long-term
For in-depth analysis on each method within each region, please see Attachment 1 that follows.
Attachment 1 – In-Depth Analysis
Western Washington: Management uses four different types of recruiting methods being media, referrals, kiosks and job service. Referrals cost the most money in total cost, but it’s apparently the most important method of recruiting for the region. This is the strongest method because it is the number one source of hired applicants and it carries the lowest cost per hire along the second highest 1 year retention rate. Also, job services provide a significantly smaller number of hired employees but they have a highest retention rate, the lowest total cost
The methods used by Tanglewood vary from each region. Our studies have concluded that referral is one of the most effective methods of recruiting in the Washington region and agency use in the Oregon region because of the following reasons:
Recruiting
Average 1 Year Retention Rate is 71%
Average Cost per Hire is $3,604.81
Average Cost per 1 Year Survival is $5,050.95
Agency
Average 1 Year Retention Rate is 90%
Average Cost per Hire is $4,712.16
Average Cost per 1 Year Survival is $5,249.48
Compared to other methods, these two seem to yield the best results compared to cost and also help with lowering the turnover rate below industry standards. The job service method also seems promising with slightly higher than average cost with similar retention rates as referrals, the very low hiring rate makes it very costly to use as a primary source of recruiting. On the other hand, the media and kiosk methods should be reevaluated or considered for deletion, as in the Southern Oregon area, for the following reasons:
Low hiring and retention rates
Low average cost per hire could amount to double the stated amount if retention rate is considered
High fixed cost and cost per hire with kiosks
Higher cost per 1 year survival will hurt company financials long-term
For in-depth analysis on each method within each region, please see Attachment 1 that follows.
Attachment 1 – In-Depth Analysis
Western Washington: Management uses four different types of recruiting methods being media, referrals, kiosks and job service. Referrals cost the most money in total cost, but it’s apparently the most important method of recruiting for the region. This is the strongest method because it is the number one source of hired applicants and it carries the lowest cost per hire along the second highest 1 year retention rate. Also, job services provide a significantly smaller number of hired employees but they have a highest retention rate, the lowest total cost