2. The following data shows turnover costs for the 4,000 employees of Hulakon, Inc., for one year. In any given year, 12 percent of the employees can be expected to quit.

A total of 120 employees participate in the company’s EAP (62 production employees, 44 clerical employees, and 14 managers). As a result of that involvement, the following numbers of employees actually quit.

Hospitalization costs comprise $189,000, or 56 percent of the total amount annually budgeted for the EAP. What is Hulakon’s ROI for its employee assistance program for this one year?

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Employee Group Number of Employees Individual Cost of Employee Turnover Production 250 $48,500 Clerical 175 $39,000 Management 55 $74,000