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 |