Are the calculated benefits of reduced turnover sufficient to justify the $680.000 in increased costs associated with the expansion of the Human Resource Management Department? Would your answer be the same if reduced productivity during the learning period was excluded from the analysis?
Annual Turnover Rate by Category for Years One through Four:
Personnel Categories	One	Two	Three	Four
Executive (n=127)	12.8	11.5	9.2	8.3
Physician (n=367)	18.1	17.6	17.9	15.6
Other Professional (n=615)	22.6	22.1	18.3	15.6
Nonprofessional (n=804)	29.0	26.3	27.1	24.3
Totals (n=19.3)	23.8	22.3	21.3	18.8
	Personnel Category
Turnover Costs	All Categories	Executive	Physician	Other Professional	Non-professional
	(n=1913)	(n=127)	(n=367)	(n=615)	(n=804)
Separation Costs:
Exit Interviews	50.73	62.50	73.00	51.00	38.50
Administrative Costs	119.27	127.00	132.50	116.00	114.50
Separation Pay	348.01	2254.00	1034.00	0.00	0.00
	518.01	2443.50	1239.50	167.00	153.00
Replacement Costs:
Job Advertisement	1346.49	1805.00	2416.50	1127.50	953.00
Pre-Employment Administration	353.80	405.00	416.50	386.50	291.00
Entrance Interviews	324.86	486.00	724.50	284.00	148.00
Assessment Testing	271.69	382.50	695.00	214.50	105.00
Staff Time	249.00	417.50	522.00	212.00	126.00
Travel/Moving Expenses	293.68	1215.50	1110.50	0.00	0.00
Processing New Employees	87.50	87.50	87.50	87.50	87.50
Medical Examinations	175.00	175.00	175.00	175.00	175.00
	3101.50	4974.00	6147.50	2487.00	1855.50
Training Costs
Informational Literature	80.00	80.00	80.00	80.00	80.00
Formal Training	147.53	340.00	516.50	35.00	35.00
On-The-Job Training	68.15	0.00	0.00	212.00	159.50
	295.68	420.00	596.50	327.00	274.50
Reduced Productivity
during Learning Period	3133.37	4000.00	6500.00	3452.00	1215.50
Total	7048.56	11837.50	14483.50	6433.00	3528.50
	1913.00	127.00	367.00	615.00	804.00
	$13,483,895.28	$1,503,362.50	$5,315,444.50	$3,956,295.00	$2,836,914.00
Department Budget per Year
Budget Cost	One	Two	Three	Four
Salaries and Benefits	110,000	233,000	288,000	324,000
Equipment and Supplies	24,000	39,000	48,000	57,000
Communications	41,000	62,000	73,000	81,000
Totals	175,000	334,000	409,000	462,000