Question: A training program was introduced to increase leadership effectiveness in a large organization, which was found to be a significant factor in employee turnover. The

A training program was introduced to increase leadership effectiveness in a large organization, which was found to be a significant factor in employee turnover. The cost per leader was $5,000. Fifty leaders were trained and training costs were $250,000(50 x $5,000). The training reduced turnover from 20 percent to 15 percent in the unit where leaders were trained. One percentage point of turnover was estimated to cost the company approximately $100,000(lost productivity, hiring costs, etc). What is the ROI? What are some weaknesses with this approach?

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