Is it possible to reduce training costs by 75%?
Yes, there are several strategies to achieve this.
The total cost of training is much higher than the enrollment fee alone.
The total cost of training includes:
- Course and trainer fees
- Costs for employee absence (employees must be paid even if they are not working)
- Costs related to lost productivity (absent employees do not generate value)
- Knowledge transfer costs (the work time needed to apply what was learned)
Let’s take an example:
Total cost of training for one day of a manager =
- Course and trainer fees: 300.- CHF
- Absence cost (about 50 CHF/hour): 400.- CHF
- Lost earnings: 400.- CHF
- Knowledge transfer cost: 700.- CHF
Total: 1,800.- CHF / day
There are less expensive training options and countries with lower salaries, but this concept can be adapted to your own situation without changing its essence.
What are the most significant training costs?
Absence from work, lost productivity, and knowledge transfer are the factors that most impact training costs, yet they are often overlooked.
Here’s what you can start doing right away:
- Promote training during employees’ free time (or at least partially), transforming it into an opportunity for personal growth and development rather than an obligation.
- Focus on self-training, encouraging preparation before training, between sessions, and after the training ends (ideally in their own free time).
- Choose courses that offer practical tools to apply immediately. Often, courses are rich in theory but lack practical tools that can be used in the field from day one.
At A4ManagementTools, we have been offering these three solutions to our customers since 2016.
Organizations have seen a tenfold increase in the ratio of investment to benefits.
