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A 100 employee information technology department of a financial services company had a high turnover rate (23% per year). A survey of employees revealed that the reason that most of the employees left was dissatisfaction with the level of training. 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.
1. What is the total cost of training?
2. What is the total cost of turnover?
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