Evaluating Hiring Strategies at a Language School
A language school in Paris, which hires recent graduates to teach French, has found that to attract more tutors, it must offer a higher wage. This is because each additional candidate has a different minimum acceptable wage, and to expand the workforce, the school must meet the requirements of those with higher minimums. The school's management is currently debating two strategies to prepare for the upcoming peak season:
- Strategy A: Hire a large number of tutors (50) by offering a significantly high wage (€30/hour). This ensures they are fully staffed but increases payroll costs substantially.
- Strategy B: Offer a more moderate wage (€22/hour), which will likely attract a smaller number of tutors (30), and risk being understaffed, potentially leading to larger class sizes or turning away students.
Evaluate these two strategies. In your evaluation, defend which strategy you believe is superior for the long-term success of the school, justifying your choice by discussing the potential trade-offs related to costs, revenue, instructional quality, and school reputation.
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Wage Determination for Tutors
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Hiring Decisions Based on Reservation Wages
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Hiring Success Factors for the Parisian Language School
The Parisian Language School's Reservation Wage Curve (Figure 6.10)
Labor Turnover and Replacement Hiring at the Parisian Language School