Human Resources decisions are made in two locations:

The Workforce Complement is entered at the bottom in the Production area, available from the Decisions menu in Capstone.xls;

Recruit Spend and Training decisions are made in the Human Resource area, also available from the Decisions menu.

Hiring the required number of workers and investments in Recruitment and Training will raise your Productivity Index, which in turn lowers your per unit labor cost.

Tip: If Labor Negotiations are scheduled, gains to the Productivity Index might be erased if low wage/benefit tactics are enacted. Productivity falls by 0.5% for every dollar difference between your wages and the Industry Best.

7.1.1 Three Areas to Consider

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 per worker.

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