1、Question 1Client Goal: Double the number of recruits while maintaining their quality with minimal increase in resources expended Our client recruits graduating college seniors for entry-level positions in locations around the world. It currently hires and places 500 graduates per year but would like
2、 to triple in size over the next ten years while maintaining quality. Assume that the increase must all come from hiring graduating seniors. (In an actual case, you may not be given this and other assumptions unless you ask.) The clients current recruiting budget is $2 million annually, and while it
3、 is in a strong financial position, it would like to spend as few additional resources as possible on recruiting. McKinsey is advising the client on what steps it will need to take in order to meet its growth targets, while staying within its budget constraints.Q1: What levers does the organization
4、have at its disposal to achieve its growth goal? A: Some possible levers are given below. Its terrific if you identified several of these and perhaps some others. Attract more applicants at the same cost Review the list of campuses targeted (e.g., optimize resource allocation across schools). The re
5、view may result in adding certain higher potential campuses and eliminating other ones that appear to have more limited potential. Review recruiting approach at each campus (e.g., optimize cost-effectiveness of messages and approaches at each school). Extend offers to a higher percentage of applican
6、ts while maintaining quality (e.g., reduce the number of people who are turned down who would have performed equally well in the job) Improve acceptance rates among offerees (e.g., better communicate the benefits of the job relative to alternatives or improve the attractiveness of the job relative t
7、o alternatives) Question 2For the remainder of the discussion wed like to focus on the two specific levers involving attracting more applicants at the same cost. Please note that if you identified different but equally valid levers, the interviewer would be able to assess them. But for the purpose o
8、f this case study, we are going to focus on these two levers.Q2: How would you initially approach determining whether the client can increase hiring by adjusting the list of campuses targeted? What sort of analysis would you want to conduct and why? You might take the following approach, where weve
9、outlined two avenues of analysis:Estimate the hiring potential across schools Analyze the number of hires by school over the last several years Develop a comprehensive list of schools that meet our requirements and a minimum set of standards for recruits Survey seniors at these schools to determine
10、interest in an entry-level position with the client Consider the size of the graduating class at each school, determine how that class might be segmented (e.g., each class could be segmented by discipline or segmented based on career interests in response to the survey), then calculate the size of e
11、ach segment Estimate the optimal cost-per-hire across schools Compare the current cost-per hire across schools Identify opportunities to decrease the cost-per-hire at each school Helpful TipYou may have a slightly different list. Whatever your approach, we love to see candidates come at a problem in
12、 more than one way, but still address the issue as directly and practically as possible. In giving the answer, its useful if you are clear about how the results of the analysis would help to answer the original question posed.Question 3Twenty-five percent of the annual recruiting budget is spent on
13、candidates (i.e., attracting, assessing, and getting them to accept). Twenty percent of hires are categorized as most expensive and have an average cost-per-hire of $2,000.Q3: What is the average cost-per-hire of all other candidates? Remember that the client hires 500 students per year and its annu
14、al recruiting budget is $2 million (information that we hope you noted earlier). The answer is $750 per hire (or less than half the cost-per-hire of the candidates). Amount spent on the less expensive candidates:25% of $2 million budget = $500,000 spent on candidates20% of 500 student = 100 students
15、 categorized as 100 x $2,000 cost-per-hire = $200,000 spent on hires$500,000 recruiting budget - $200,000 = $300,000 remaining for all other hires The number of less expensive candidates:500 hires - 100 = 400 other hiresCost-per-hire of the less expensive candidates:$300,000/400 =$750 per hireWhile
16、you may find that doing a straightforward math problem in the context of an interview is a bit tougher, you can see that it is just a matter of breaking the problem down. We are looking for both your ability to set the analysis up properly and then to do the math in real time.Question4Q: In order to
17、 decide whether to reduce costs at the least efficient schools (i.e., those with an average cost per hire of $2,000), what else would you want to know? Some of the possible answers are given below. Basic questions:What are the components of costs at these schools (why is it so expensive to recruit t
18、here)?What opportunities exist to reduce costs?How much cost savings would result from implementing each of the opportunities?What consequences would implementing each of these opportunities have on recruiting at the least efficient schools?Questions demonstrating further insight:Why is the cost low
19、er at more efficient schools, and are there best practices in resource management that can be applied to the least efficient schools?If we reduce costs at the least efficient schools, what will we do with the cost savings (i.e., what would be the benefit of spending the money elsewhere vs. where it
20、is currently being spent)?We would not expect anyone to come up with all of these answers, but we hope some of your answers head in the same direction as ours. Yours may bring some additional insights. In either case, be sure that you can clearly explain how your question will bring you closer to th
21、e right decision.Question 5The McKinsey team conducts some analysis that indicates that increasing spending on blanket advertising (e.g., advertisements/flyers on campus) does not yield any significant increase in hires.Q5: Given that increased blanket advertising spending seems to be relatively ine
22、ffective, and the client doesnt want to increase overall costs, what might be some other ideas for increasing the candidate pool on a specific campus? We are looking for at least a couple of answers like the ones given below:Improve/enhance recruiting messages (e.g., understand target candidate grou
23、p, refocus message on this group, understand competitive dynamic on campus) Utilize referrals (e.g., faculty, alumni) Come up with creative ways to target specific departments/clubs of the school Rethink advertising spending - while increasing blanket ad spending doesnt seem to work, advertising mig
24、ht still be the most efficient and effective way to increase the number of candidates if it is deployed in a more systematic, targeted way This question is a good one for demonstrating creativity because theres a long list of possible ideas. Additional insights into how a given idea would be approac
25、hed and how much it would cost are helpful.Question 6For simplicitys sake, lets say weve conducted market research and found that there are two types of people on each campus, A and B. Historically, our client has also used two types of recruiting messages in its advertising. The first, called See the World, g
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