Customer Driven HR Costs Benefits: Assessing Business Case Training (Case Study Sample)
Instructions for Assignment Choice #1- Case 8.2 Customer-Driven HR Costs and Benefits: Assessing the Business Case for Training
If you choose this assignment, you are to write a minimum of 2 full pages (double spaced with Times New Roman size 12 font with 1 inch margins) not including title sheet and references. 5 pages is the maximum. You are required to organize your paper into the following 6 section headers in order:
Section 1- Case Summary (<- Use this section header)- Briefly describe the facts of the case.
Section 2- Impact to Bottom Line & Revenue (<- Use this section header)- As you have read, training can increase revenue. The revenue could come from increased quality of the customer experience due to the impact of training. Consider, as an example, the table of customer survey responses before and after training shown on the next page. The numbers are percentages of customers in each satisfaction category six months before and six months after employees received their training. A key change is a reduction in the “Very dissatisfied— will never return” category of customers, which fell from 15 to 5 percent. What will this 10 percent change mean to the bottom line? Assume that the average revenue generated per month by a customer is $ 500.00. Also assume that you have 500 customers. What is the increased revenue due to the training for the past six months? What would be the revenue generated if you had 1,000 customers?
Section 3- Direct Cost Savings (<- Use this section header)- Training can also impact the bottom line by reducing a number of direct costs. For example, employee costs may be reduced because fewer overtime hours will be needed because of improved performance. Another cost reduction can be seen in reduced returns, because training may reduce errors or damage that can occur when the product or service is provided. Make assumptions about the costs in each of these categories and any other direct costs you can think of. Also assume that you can expect a 10- percent reduction in each of these categories. Generate the direct cost savings estimate due to the training.
Section 4- Turnover Costs Savings (<- Use this section header)- Training can also impact the bottom line by reducing indirect costs. These are costs that may not be obvious, but that are still important. For example, safety of work processes or equipment can be improved due to training if workers handle materials or equipment more safely. Employee turnover can also be reduced, because of improved job satisfaction due to the training. Assume that training results in a 10 percent reduction in your turnover rate. Also, assume that the cost of a turnover is 1.5 times the departing employee's salary. For a given average employee salary of your choosing, estimate the reduced costs due to the reduction in turnover.
Section 5- Combine Impacts of Savings (<- Use this section header)- Given your answers to the previous questions, estimate the combined impact of direct and indirect savings generated by training on the bottom line. Extrapolate this number over a one- or two- year time period.
Section 6- Key Learnings (<- Use this section header)- Elaborate on two key learnings from the case related to training and development. Be sure to clearly state the two key learnings and defend them in well-organized, scholarly responses.
Section 7- References (<- Use this section header)- You provide the full citations for 2 credible sources according to the CSU-Global Guide to Writing and APA Requirements. You also incorporated these 2 references internally appropriately.
Section 1- Case Summary
Employee training is crucial for talent management and the wellbeing of the company. Through training, businesses are able to increase their performance and thereby revenue. At the same time, they are able to reduce their direct, indirect costs and turnover costs (Khan, Khan & Khan, 2011).
Section 2- Impact to Bottom Line &
Talent management is a crucial step towards improving the performance of the company. It is important to note that, as the employees are trained, they improve their abilities and reduce the level of inefficiency significantly. Human resource management officers have to make sure that they develop training programs for their staff to ensure that they are able to shore up the challenges with talent and production processes. With the training of the staff comes customer satisfaction, increase with reduced complaints as well (Shaw, 2018). Comparatively, responses from a period of six months indicate a gradual and steady decrease in the complaints, from 15% to 5%. This is a 10% drop which is very significant, especially when the bottom line is concerned. It shows the impact of training on the company. Over the same course of time the customer base has increased from 500 to 1000. Considering that the business was generating $500 it is now expected to generate an estimated $1000 in revenue.
Section 3- Direct Cost Savings
Given that the training increases the skill levels of the employees, it is bound to reduce the direct costs that the company encounters (Khan, Khan & Khan, 2011). The staff is better and efficient, which means that they work more for less hours and this reduces the costs that the business would incur in the past with overtimes. At the same time, gi
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