Dear HR Practitioners,
I need assistance in determining standard costs for internal training interventions. An example is determining what will the cost per person be for a day's session of induction.
Key to my dilemma is the cost per person that anyone attending that session can be charged. At the moment the cost per person is derived by dividing the total cost of the intervention by the number of people who attended. But we want to have standard costs for each internal intervention irrespective of the number attendees.
Please assist.
From Raymond
From South Africa, Pietermaritzburg
I need assistance in determining standard costs for internal training interventions. An example is determining what will the cost per person be for a day's session of induction.
Key to my dilemma is the cost per person that anyone attending that session can be charged. At the moment the cost per person is derived by dividing the total cost of the intervention by the number of people who attended. But we want to have standard costs for each internal intervention irrespective of the number attendees.
Please assist.
From Raymond
From South Africa, Pietermaritzburg
Dear Raymond,
I don't think we can arrive at STANDARD TRAINING COST because of various reasons involved. Kindly provide me relevant information for the queries listed below
1) Did you hire an external trainer to cater your training needs?
2) Is the trainer's fee(one or two day programme) same /fixed for various modules?
Since it is ON JOB TRAINING, for deriving TRAINING COST PER EMPLOYEE PER MODULE or FOR RESPECTIVE MODULE, add one day salary of respective employee to the TRAINING COST PER EMPLOYEE.
I wonder why you want to charge your employees. Is it a good practice? To my knowledge there is an organisation who pays their employees xyz amount to get themselves trained for better performance. If they fail to perform, they will not get hike in pay.
With profound regards
With profound regards
From India, Chennai
288I don't think we can arrive at STANDARD TRAINING COST because of various reasons involved. Kindly provide me relevant information for the queries listed below
1) Did you hire an external trainer to cater your training needs?
2) Is the trainer's fee(one or two day programme) same /fixed for various modules?
Since it is ON JOB TRAINING, for deriving TRAINING COST PER EMPLOYEE PER MODULE or FOR RESPECTIVE MODULE, add one day salary of respective employee to the TRAINING COST PER EMPLOYEE.
I wonder why you want to charge your employees. Is it a good practice? To my knowledge there is an organisation who pays their employees xyz amount to get themselves trained for better performance. If they fail to perform, they will not get hike in pay.
With profound regards
With profound regards
From India, Chennai
Thank you Shaik for the response,
By standard cost I am referring to one cost for a particular intervention e.g. if an employee attends Time Management, then the cost per person is 25 dollars irrespective of the number of people who attended.
The cost will assist in estimating training budgets for departments in our company.
From South Africa, Pietermaritzburg
By standard cost I am referring to one cost for a particular intervention e.g. if an employee attends Time Management, then the cost per person is 25 dollars irrespective of the number of people who attended.
The cost will assist in estimating training budgets for departments in our company.
From South Africa, Pietermaritzburg
Dear Raynet,
Honestly speaking, i found it your organisations training strategy very strange. If you charge your employees, then its going to be a different ball game. Post training, that too paid(investment) by employees, what if your employees expect more hike in pay if their performance found to be outstanding?
What is the major objective of organizing training for your employee?
Is it a need based training or Generic?
What if employees hesitate to undergo training as they need to invest from their pocket?
It is the responsibility of the organisation to develop employee competencies/skills by offering Trainings, applying Mentoring & Coaching strategies, this is the part of PERFORMANCE ANALYSIS and OD as well. By doing so, management will have upper hand on employees else its difficult to meet employee expectations.
With profound regards
From India, Chennai
Honestly speaking, i found it your organisations training strategy very strange. If you charge your employees, then its going to be a different ball game. Post training, that too paid(investment) by employees, what if your employees expect more hike in pay if their performance found to be outstanding?
What is the major objective of organizing training for your employee?
Is it a need based training or Generic?
What if employees hesitate to undergo training as they need to invest from their pocket?
It is the responsibility of the organisation to develop employee competencies/skills by offering Trainings, applying Mentoring & Coaching strategies, this is the part of PERFORMANCE ANALYSIS and OD as well. By doing so, management will have upper hand on employees else its difficult to meet employee expectations.
With profound regards
From India, Chennai
Our internal training is mainly generic. We do not charge employees, but need to determine what costs have the training department incurred for conducting a particular course. We are able to determine the cost of the entire course and divide that by the number of people.
But my challenge is determining a standard cost for generic training like customer service which we conduct on monthly basis.
From South Africa, Pietermaritzburg
But my challenge is determining a standard cost for generic training like customer service which we conduct on monthly basis.
From South Africa, Pietermaritzburg
Dear All,
Training can not be a cost "it is an investment"
Look at the benefits of the trainings.
Training and Awareness improves the Culture of an organisation
For arriving at the Budgets rafer to the Training need Identification matrix. (If you have it)
Calculate the number of training programs.
Take approx quotes from Faculties and provide 1.5 times of the same while budgeting.
Thanks & Regards,
Sudhir
From India, Nasik
Training can not be a cost "it is an investment"
Look at the benefits of the trainings.
Training and Awareness improves the Culture of an organisation
For arriving at the Budgets rafer to the Training need Identification matrix. (If you have it)
Calculate the number of training programs.
Take approx quotes from Faculties and provide 1.5 times of the same while budgeting.
Thanks & Regards,
Sudhir
From India, Nasik
As i told you earlier, we cannot derive at STANDARD TRAINING COST PER EMPLOYEE unless your management had appointed IN-HOUSE TRAINER and he is responsible for training your employees on various modules. This is the best, cost effective and proven strategy to develop your employees competencies as the IN-HOUSE TRAINER will be available within the organisation, able to interact with your employees regularly and keep monitoring their performance.
Kindly share your email id, will send some information that will be of some help to you and your organisation
with profound regards
From India, Chennai
Kindly share your email id, will send some information that will be of some help to you and your organisation
with profound regards
From India, Chennai
Hi Raymond
You can calculate internal training cost.
Below is the calculation:
Salary of the trainer ( if it is a staff member ) divided by 21.67 (average working days) = Rate per day
You then take the rate per day divided by 8 (average working hours) = Hourly Rate
If your training is only 3 hours a day you take your hourly rate multiply by the no of hours trained.
This will give you a cost to allocate for in-house training.
I hope this helps
Suret
From South Africa, Pretoria
You can calculate internal training cost.
Below is the calculation:
Salary of the trainer ( if it is a staff member ) divided by 21.67 (average working days) = Rate per day
You then take the rate per day divided by 8 (average working hours) = Hourly Rate
If your training is only 3 hours a day you take your hourly rate multiply by the no of hours trained.
This will give you a cost to allocate for in-house training.
I hope this helps
Suret
From South Africa, Pretoria
Raymond,
Many companies we work with use the same methods of calculation that you already do. A crucial part of your question does not take into account the limit of the training class size.
While your training process may be internalized and the topics covered may not require a limit on the class size, you could do either or both of these things:
Look at an "average class size" and figure out per person training costs by dividing the training fee if it's an external trainer (especially for special behavioral training or coaching)
Find the effective training class size for your regular class and divide the internal training budget with this number.
From India, Mumbai
Many companies we work with use the same methods of calculation that you already do. A crucial part of your question does not take into account the limit of the training class size.
While your training process may be internalized and the topics covered may not require a limit on the class size, you could do either or both of these things:
Look at an "average class size" and figure out per person training costs by dividing the training fee if it's an external trainer (especially for special behavioral training or coaching)
Find the effective training class size for your regular class and divide the internal training budget with this number.
From India, Mumbai
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