Ivan Is an Outstanding Performer Who Was Provided to the Firm

question 123

Multiple Choice

Ivan is an outstanding performer who was provided to the firm by a temporary service firm two months ago.Ivan's manager would like to hire Ivan as a regular employee and she has come to you,the HR director,to make this request.You realize that

• A) the temporary agency contract requires the company to pay a placement fee if Ivan is hired as a regular employee
• B) Ivan's performance will probably decrease if he is hired as a regular employee because his high performance was likely an "audition effect."
• C) Ivan will be less expensive as a regular employee than as a temporary employee because temporary employees typically receive a 20% wage premium to offset the lack of benefits.
• D) your employer is ethically bound not to hire temporary employees provided by an agency for regular employment.

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Definitions:

Inventory Period

The average time it takes for a company to turn its inventory into sales, indicating the efficiency of inventory management.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Short-term Finance

Financing options intended for a period typically less than one year, used to address immediate operational needs.