Abstract

The HR managers of ABC Incorporated needed to evaluate the cost of conducting a training program for its new joinees. The case provides basic facts and figures associated with conducting the training program and asks the participants whether the company should invest in training the new employees and if so, in how much time the firm can expect to recover the costs through the trainees’ output. The case will help students grasp the concept of HR Metrics and orient them toward understanding the process of Return on Investment (ROI) calculation of training.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the process of measuring HR processes.
• Understand training cost evaluation.
• Learn the calculations involved in ROI calculation, with special focus on Training ROI.
• Understand, as future HR managers, how to make their decisions more objective with the help of data.

Keywords

HR metrics, HR analytics, Training and development, Training metrics, ROI of Training, Training cost evaluation, Direct costs, Indirect costs, Cost benefit analysis, Payback period