1. Training return on investment( ROI) is a calculation of economic return on a project.
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.
2. 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).
Value of projected benefits = $ 70,000 Cost = $ 14,000.00
3. 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