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7.2 Human Resources
When the Human Resources Module is activated, three areas must be addressed:
- Complement: The number of workers in the workforce. Needed Complement is the number of workers required to fill the production schedule without overtime.
- Caliber: The talent of the workforce. If companies are willing to spend the money, they can recruit a higher caliber of worker. This results in higher productivity and lower turnover. Companies set a Recruiting Spend budget of up to an additional $5,000 per worker. If they spend nothing extra, their recruitment cost per worker remains at $1,000 and they get an average person off the street. The more they spend, the higher the caliber of the worker.
- Training: The amount of time workers spend in training each year. Training leads to higher productivity and lower turnover, but takes people off the job while they are in the classroom. Each training hour costs $20.00 per worker.
Investments in Recruiting and Training raise your Productivity Index, which in turn lowers your per unit labor costs.
Human Resources decisions are made in two locations:
- The Workforce Complement percentage is entered at the bottom in the Production area;
- Recruiting Spend and Training decisions are made in the Human Resource area.
When the module is not active, the Needed Complement will always be 100% and the Recruiting and Separation costs will automatically update as production schedules are adjusted.