Question: A 100 employee information technology department of a financial services company had a high turnover rate (23% per year). A survey of employees revealed that the reason that most of the employees left was dissatisfaction with the level of training. The cost to recruit and train one new employee was $56,625. To address the turnover problem, the company developed a skills training program that averaged 80 hours per year per employee. The average employee wage was $35 per hour. Instructor, classroom, and other costs were $170,000.
If the turnover rate dropped 8% (from 23% to 15%) what would be the financial benefit of the training program?