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The following data shows turnover costs for the 4,000 employees of Hulakon Inc., for one year. In any given year, 12 percent of the employees can be expected to quit.
Employee Group Number of Employees Individual Cost of Employee Turnover
Production 250 $58,500
Clerical 175 $49,000
Management 55 $84,000
A total of 120 employees participate in the company's EAP (62 production employees, 44 clerical employees, and 14 managers). As a result of that involvement, the following numbers of employees actually quit.
Employee Group Number of Employees
Production 31
Clerical 22
Management 7
Hospitalization costs are $200,000, or 56 percent of the total amount annually budgeted for the EAP. What is Hulakon's ROI for its employee assistance program for this one year?
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