Data: A training programme costs ₹50000 and improves the skills of 40 employees. A new recruitment drive costs ₹60000 to hire 5 new employees.
Which is more beneficial?
Show answer & explanation
Correct answer: A
Explanation
We can evaluate the cost-effectiveness of both options:
• Training Programme: Total cost = ₹50,000 for 40 employees.
Cost per employee benefited =
• New Recruitment: Total cost = ₹60,000 for 5 employees.
Cost per new hire =
The training programme costs significantly less per employee and upgrades the skills of a much larger group (40 employees) compared to hiring only 5 employees at a higher total cost. Therefore, it is far more beneficial.
Hence, the correct option is (A).