How much would the turnover rate have to be reduced

Assignment Help HR Management

Reference no: EM133407566

Case Study: A financial services company with 100 employees in their Information Technology (IT) department had a high turnover rate within the IT group. A survey of IT employees revealed that the reason most of them left was dissatisfaction with the level of training.

The average turnover rate for this department was 24 percent per year.
The cost to recruit and train one new IT employee was $56,625.
To address the turnover problem, the company developed a skills training program.

The skills training program averaged 80 hours per year, per employee for the 100 employees.
The average IT employee wage was $40 per hour.
Instructor, classroom, and other costs were $160,000.

Questions: In your written assignment, answer all of the following:

What is the total cost of training? The total cost of turnover?
If the turnover rate dropped 8 percent (from 24 percent to 16 percent), what would be the financial benefit of the training program?
What is the ROI of the skills training program with an 8% decrease in turnover?
How much would the turnover rate have to be reduced (from 24 percent) for the training program to show a benefit?

Reference no: EM133407566

Questions Cloud

Discuss how personality psychology has value in your life : Discuss how "personality psychology" has value in your life and/or contributes to understanding humankind

What are the impacts of clumping different latinx : What are the impacts of clumping different Latinx and Latin American films into one category? How does racism and sexism shape power, representation?

How will this work make an impact on the hr organization : What area is your plan (Training/Developing) and why How will you demonstrate/present your work to the team? Via phone (briefly in outline form)

Describe your goals to help consumers stop impulsive buying : Describe your goals to help consumers stop impulsive buying and Describe the methods you would use to solve this problem

How much would the turnover rate have to be reduced : What is the total cost of training? The total cost of turnover? If the turnover rate dropped 8 percent (from 24 percent to 16 percent)

What explains the development of ptsd in one inmate : What explains the development of PTSD in one inmate and not the other? What research supports your reasoning?

Explain what action would be appropriate to determine : Explain what action would be appropriate to determine if training is necessary and the three areas that would need to be addressed. What information would you

How teachers might support language development : Discuss how teachers might support language development in the early years by depicting an example of a teacher using either a recast or expansion of a childs

How has law and psychiatry and other social sciences : With respect to capital punishment, how has law and psychiatry, and/or other social sciences, impacted it as a means of social control in the United States?

User Account

All Pages