How much of a cost savings might you expect in the sixth year? for example, if the total labor costs on the income statement says $29m, and costs stay the same for six years, then in the last year your costs would fall to $29/1.18 m. apply the same approach to years one through five to get a total savings over time. would this justify the necessary expenditures in recruiting and training made over time? assume a turnover of 10% and no increase in workforce size. since you are sending workers to training for 80 hours or two weeks each year, you also need to expand the workforce enough to cover the workers that are in training. we are looking for a ballpark answer, not a precise answer, so that you can decide whether or not a payoff in hr productivity justifies the expense. so far we have assumed our workforce and labor contracts are constant. in practice the market is growing at about 14%, and your labor contract has a 5% wage escalator. how does this affect the numbers? at what level, if any, would you recommend that your company invest in recruiting and training? are there any factors beyond the simple numbers that should be considered?