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Optimal hiring and retention policies for heterogeneous workers who learn

Publication ,  Journal Article
Arlotto, A; Chick, SE; Gans, N
Published in: Management Science
January 1, 2014

We study the hiring and retention of heterogeneous workers who learn over time. We show that the problem can be analyzed as an infinite-armed bandit with switching costs, and we apply results from Bergemann and Välimäki [Bergemann D, Välimäki J (2001) Stationary multi-choice bandit problems. J. Econom. Dynam. Control 25(10):1585-1594] to characterize the optimal hiring and retention policy. For problems with Gaussian data, we develop approximations that allow the efficient implementation of the optimal policy and the evaluation of its performance. Our numerical examples demonstrate that the value of active monitoring and screening of employees can be substantial. ©2014 INFORMS.

Duke Scholars

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

January 1, 2014

Volume

60

Issue

1

Start / End Page

110 / 129

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences
 

Citation

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Arlotto, A., Chick, S. E., & Gans, N. (2014). Optimal hiring and retention policies for heterogeneous workers who learn. Management Science, 60(1), 110–129. https://doi.org/10.1287/mnsc.2013.1754
Arlotto, A., S. E. Chick, and N. Gans. “Optimal hiring and retention policies for heterogeneous workers who learn.” Management Science 60, no. 1 (January 1, 2014): 110–29. https://doi.org/10.1287/mnsc.2013.1754.
Arlotto A, Chick SE, Gans N. Optimal hiring and retention policies for heterogeneous workers who learn. Management Science. 2014 Jan 1;60(1):110–29.
Arlotto, A., et al. “Optimal hiring and retention policies for heterogeneous workers who learn.” Management Science, vol. 60, no. 1, Jan. 2014, pp. 110–29. Scopus, doi:10.1287/mnsc.2013.1754.
Arlotto A, Chick SE, Gans N. Optimal hiring and retention policies for heterogeneous workers who learn. Management Science. 2014 Jan 1;60(1):110–129.

Published In

Management Science

DOI

EISSN

1526-5501

ISSN

0025-1909

Publication Date

January 1, 2014

Volume

60

Issue

1

Start / End Page

110 / 129

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences