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| Example: Reduce
training requirements by 40%. |
| Reduction in Training Needs: |
40% |
Annual Salary (Trainee): |
30,000 |
Improvement Cost: |
100,000 |
| Number of Target Users: |
2,000 |
Annual Salary (Trainer): |
40,000 |
Expected Project Life: |
3 years |
| Duration of Training Hours: |
20 hours |
Number of Classes: |
100 |
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| Annual Savings = ( (2,000 x (30,000/1,840*)
x 20) + (100 x (40,000/1,840*) x 20) ) x 0.4 = 278,261 |
| Total ROI = (278,261 x 3) - 100,000 = 734,783 |
| * Work year = 230 work days / year; 8 hours
workday = 1840 hours / year |
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