Analytical Aptitude

The correct answer is Analysis of variance (ANOVA).

Analysis of Variance (ANOVA) is the appropriate statistical method used to compare the means of three or more distinct groups simultaneously. By testing the groups together rather than in pairs, ANOVA determines if at least one of the group means is statistically different from the others while controlling the overall Type I error rate (the probability of identifying a difference by chance when none exists).

Why the other answers are incorrect:

• Independent t-test series: An independent t-test is designed to compare the means of only two groups. While one could run multiple t-tests to compare three groups (e.g., Group A vs. B, B vs. C, and A vs. C), doing so increases the family-wise error rate, leading to the inflated error rates explicitly mentioned as a concern in the question.

• Bivariate correlation analysis: This technique measures the strength and direction of the linear relationship between two continuous variables, not the difference in means between groups.

• Multivariate regression modeling: This is used to predict the value of a dependent variable based on the values of two or more independent variables. While it deals with relationships between variables, it is not the primary test for simply comparing mean differences across a single factor with multiple groups in the specific context of avoiding multiple comparison errors.

The correct answer is the compa-ratio calculation. In compensation benefits and administration, a compa-ratio (comparative ratio) is the specific metric used to define the relationship between an employee's pay and the market reference point (the midpoint) for their specific job. The formula is: Individual Base Pay / Salary Range Midpoint = Compa-Ratio.

Why the other answers are incorrect:

• The range penetration index calculates the position of an employee's salary relative to the minimum and maximum of the range, not just the midpoint. It is calculated as (Pay - Range Minimum) / (Range Maximum - Range Minimum).
• The salary compression factor refers to a specific issue where pay differentials between employees with different experience levels are too small, rather than a standardization metric for individual pay positioning.
• The market parity coefficient is not the standard terminology for the internal calculation of dividing base pay by the salary structure midpoint.

The best answer is Recruiting team compensation and benefits.

Under the ANSI/SHRM Cost-per-Hire standard, the Total Cost per Hire formula requires the aggregation of both External Costs ($Cost_{ext}$) and Internal Costs ($Cost_{int}$).

The question indicates that external expenses (agency fees, advertising, travel) are already included. To fully comply with the standard, the formula must account for Internal Costs. These comprise the internal staff, capital, and organizational costs specifically allocated to the recruitment function. The most significant component of internal costs is the salary and benefits of the recruiting team and other staff involved in the hiring process.

Why the other answers are incorrect:
- New hire onboarding and social integration: These costs are typically classified under training and development or general HR integration costs, rather than the specific cost of acquiring (recruiting) the talent.
- Lost productivity measures from vacancies: This calculates the 'Cost of Vacancy,' which is a separate metric used to understand the business impact of open roles, not the operational efficiency of the hiring process itself.
- Future performance based incentive accruals: These are compensation components related to the new hire's future employment package, not an operational expense incurred by the HR department to find and screen the candidate.