As you have read, training can increase revenue. The revenue could come from increased quality of the
Question:
As you have read, training can increase revenue. The revenue could come from increased quality of the customer experience due to the impact of training. Consider, as an example, the table of customer survey responses before and after training. The numbers are percentages of customers in each satisfaction category six months before and six months after employees received their training. A key change is a reduction in the “Very dissatisfied—will never return” category of customers, which fell from 15 to 5 percent.
a. What will this 10 percent change mean to the bottom line? Assume that the average revenue generated per month by a customer is $500.00. Also assume that you have 500 customers.
b. What is the increased revenue due to the training for the past six months?
c. What would be the revenue generated if you had 1,000 customers?
Training can also impact the bottom line by reducing a number of direct
costs. For example, employee costs may be reduced because fewer overtime hours will be needed because of improved performance. Another cost reduction can be seen in reduced returns, because training may reduce errors or damage that can occur when the product or service is provided.
Step by Step Answer:
Managing Human Resources
ISBN: 9780135196007
9th Edition
Authors: Luis Gomez-Mejia, David Balkin, Kenneth Carson