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Training return on investment (ROI) is a calculation of economic return on a project. Refer to the lecture for the formula. Review this problem. An
Training return on investment (ROI)is a calculation of economic return on a project. Refer to the lecture for the formula. Review this problem.
An organization lost 125 employees last year, at a cost of $5,000.00 each. (Value is derived from cost to rehire and fill opening, as well as lost investment in the employee.) You suggest that a one-time investment in a training program (costing $250,000 up front) will reduce turnover by 50%. Calculate the following numbers using historical figures as your assumptions.
- Total savings that the program stands to create
- Net savings the first year in place
- Return on investment after one year
- Return on investment after two years
- Return on investment after six months (assume half of the employees/but all of the cost) (5 points)
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