1. The 100-employee information technology department of a financial services company had a high turnover rate. A survey of employees revealed that the reason most left was dissatisfaction with the level of training. The average turnover rate was 23 percent per year. The cost to recruit and train one new employee was $56,625. To address the turnover problem, the company developed a skills training program that averaged 80 hours per year per employee. The average employee wage was $35 per hour. Instructor, classroom, and other costs were $170,000.

a. What is the total cost of training? The total cost of turnover?

b. If the turnover rate dropped 8 percent (from 23 percent to 15 percent), what was the

c. What was the ROI of the training program?

d. How much would the turnover rate have to be reduced from 23 percent for the training program to show a benefit?

Sears assigned a training program to improve tools and hardware sales. The two-hour program involved distance learning and was broadcast from the sears training facility to

50 salespersons at 10 store locations in the United States. The salesperson is paid $15 per hour. The program involved training salespeople in how to set up merchandise displays so they attract buyers' attention. Sales of tools and merchandise at the 10 stores included in the program averaged $5000 per week before the program and $6500 per week after the program. Program cost included:

2. What is the return on investment (ROI) from this program?

Instructor………………………………………..................…….$10000

Distance learning (satellite space rental)………..……..$5000

Materials ($100 per trainee at 50 trainees)…………..$5000

Trainees salaries and benefits………………………........$1500

Answer rating: 100% (QA)

1 a 100 employees 23 turnover is 100 023 23 employees year Training cost new employee 23 ... View the full answer