Cost vs Benefit related to training

HR Case Study The author of this report has been asked to read and review the You Manage It case study on page 286 of the assigned text. The text speaks about training and how it is assessed on a cost versus benefit basis. Indeed, training can be beneficial but it can also be a waste of time and money. Even if there are technically benefits to a training even without proven cost/benefit ratios, it is wise to make a business case that proves that there is a benefit.

Such was the case in the example given in the case study. The author will answer to all of the critical thinking questions in the case as well as at least two of the key learnings to be had as well. While training is not a panacea, it is a needed and necessary part of making sure that service quality is where it could and should be.

Analysis A lot of what is in the case study in question for this assignment has already been touched upon in the introduction but more needs to be said. Basically, the example scenario speaks about the need to find and retain customers. One method to pull this off is to train workers so that the quality of service is there to supplement the quality of the products. Beyond that, there is a grid that shows the "before" and "after" when a training is completed.

The three responses are not satisfied/will not return, OK/would return and satisfied/would return. The responses, respectively, before the training are 15/15/70 and they shift to 5/15/80 after the training. Clearly, the training paid off (Caveo, 2016). As far as the impacts to the bottom line over the next year or two, the case study is clearly indicating that there will be an increase. Indeed, there was a shift from 85 people to 95 people that at least said they would return, even if their overall impression was underwhelming.

This should lead to 13% increase on what would otherwise be seen in the first year and then the increase would be even more in the second year if the pattern holds. This is because the percentage is unchanged but the larger pie from which the percentage comes is bigger, thus the raw numbers that fits into that percentage would be larger. What was described above really points to the answers for 8-19 and 8-20.

The author of this response would simply add that it would be ten percent of the entire client base would be repeat customers. That alone means an increase in sales as those people would come back. New customers would just be icing on the cake and would also compound just like interest if the pattern holds. The average amount by customer would probably rise, albeit that would vary based on how many times they visit, their income, how much they spend per visit and so on.

It is safe to say that a repeat customer would spend the same (or more) as time goes on so long as the quality is there. In the end, having 1,000 customers producing $500 each would be half a million dollars (Fojtik, 2002). If a customer spends $500 and there is a ten percent cost reduction, this would mean a $50 increase in profit, in terms of raw figures. A reduction in turnover rate would also benefit the company as there would be less training costs.

The less new people are brought on means the less training is needed since the people that choose to stay have already had the training. It is noted in the case and questions that 1.5 times the employee's salary must be spent. That means that if a $10,000 a year employee leaves, that means $15,000 a year must be spent to replace him (Go2HR, 2016). Conclusion The two key learnings that the author of this.