Turnover costs, absence reduction, training impact, and compliance value
FREE03 – People Professionals and Finance
This CIPD Level 0 video, part of the FREE03 – People Professionals and Finance unit, explores how to evaluate the financial impact of people initiatives by examining turnover costs, absence reduction, training impact, and compliance value. Aligned with assessment criteria AC 2.2, the video demonstrates practical approaches to cost–benefit analysis and ROI thinking, helping HR professionals understand both direct and indirect benefits of HR investments. By analysing real-world examples of payback periods and productivity measures, you'll gain the tools needed to justify people initiatives to senior leadership and make evidence-based decisions about resource allocation.
Assessment Criteria 2.2
Discuss how to evaluate the cost and value of people initiatives.
Indicative Content
To include: ROI and cost–benefit thinking; direct vs indirect benefits; payback period (high level); productivity measures; turnover cost; absence reduction; training impact; risk reduction and compliance value.
What You'll Learn
Video covering: Turnover costs, absence reduction, training impact, and compliance value
About FREE03 – People Professionals and Finance
To develop learners’ understanding of essential finance concepts in business and how people professionals use financial insight to support workforce decisions, budgets and organisational performance.
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