Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Baldwin has obtained a productivity index of 109.

Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Baldwin has obtained a productivity index of 109.4%. This means that Baldwin’s labor costs would be increased by 9.4% if it did not have these productivity improvements. This is a competitive advantage that Baldwin can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Baldwin’s Annual Report. How much did Baldwin’s productivity improvements save it in direct labor costs (in thousands) last year?

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