HRM 420 Training and Development

May 30th, 2013
Price: $50 USD

Question description

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) Cost-benefit analysis presents data as a ratio to determine financial impact on company profitability. The formula is: cost-benefit ratio = value of projected benefits divided by cost. We have estimated that a training program on sexual harassment will cost $14,000 and result in a savings of $70,000 (the cost of the two settlements we paid last year). What is the cost-benefit ratio of this training? (2.5 points) What is the return on investment after one year? (2.5 points) Do you agree that we can use the amount of our settlements from the prior year as our savings figure? Why or why not? (5 points) (10 points total) Break-even analysis. This is the point in which revenue (or savings) from the program equals the cost of the program-the time the company has "broken even" on the cost of the training. Formula = Break-even point = cost/savings * time *time is the period of time in which the return is being calculated−if annually, then 12 months. A program has an annual cost of $70,000 and is expected to generate in return a savings of $80,000. When would the break-even point occur, given steady savings and costs? (5 points) Why is it important for trainers to be able to estimate the ROI, cost-benefit analysis, and break-even analysis? Give three reasons why calculating this information will assist the training endeavors. (5 points)

Tutor Answer

(Top Tutor) Daniel C.
School: Boston College

Studypool has helped 1,244,100 students

Review from our student for this Answer

May 30th, 2013
"<3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors