Scenario:

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.$

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?