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You are head of human resources for a large company. Staff turnover is a big pro...
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You are head of human resources for a large company. Staff turnover is a big problem for the company. Every worker that quits means you need to spend, on average, to replace them. This is made up of in overtime paid to cover their work until a replacement is found, in direct recruitment costs, and a further on training their replacement. At present, the company loses workers per year.A HR consultant recommends that you initiate a scheme designed to improve staff wellbeing and that is expected to reduce staff turnover. It is predicted that staff turnover will fall to workers each year the scheme runs. The scheme lasts for four years. Once the scheme ends, you expect staff turnover to return to normal levels. The scheme costs paid up-front. If the firm’s hurdle rate is , what is the net present value of the scheme (to the nearest dollar)?
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