Too busy for training?

Sometimes training seems expensive, until you take into account the savings in time.  Bear with me on the math (I’m a numbers based person!), but if 4 employees are averaging $35,000 per year, and take an 8 hour class that saves them 30 minutes per day, it takes under 2 months to pay off the class and the time spent in the class.  I have seen equipment payoffs of over 3 years in some cases!  After that, the money goes right to your bottom line.

The lesson to learn is that it pays to assess your skill sets on a regular basis and find out where you can get big payoffs.  Spend time where it is important.

 

Annual Wages  $35,000.00
Working Weeks 50
Hours per Week 40
Labor Overhead – Taxes & Benefits 50%
Dollars per hour (wages/weeks/hrs per week)*labor overhead  $26.25
Course Time (hours) 8
Per Student Labor cost during training (dol per hour * course time)  $210.00
Number of people in class 4
Total Student Labor Cost (per student cost * num students)  $840.00
Instructor Cost in Dollars per hour $125
Instruction cost (Instr. $per hour * course time)  $1,000.00
Total Cost – Student and Instructor (instr. cost + student labor cost)  $1,965.00
Total Cost of training per student (*student & Instr. cost / # students)  $491.25
Hours Saved per week as result of training 2.5
Annual Savings (hrs saved per week * working weeks * labor $ per hour)  $13,125.00
Net Savings (savings – cost)  $11,160.00
Months to recoup investment (total cost / annual savings / 12 months) 1.797

 

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