It’s Friday, time for great thoughts. This week: how to get rich thanks to targeted training cost calculation.
In our previous articles, we have analyzed in detail which items are relevant in the calculation of training costs, including training design and even downtime. The table created in our last post is a basis for calculation that can be built upon or adjusted as you please.
In our example, covering the topic through eLearning proved to be the most convenient choice, but this is not always the case.
1 – If the training involves commuting costs for the trainers only, the cost of classroom training will generally be lower than the eLearning.
2 – On the other hand, if participants have to travel to a training center in order to participate, the costs of classroom training will be higher than the eLearning.
3 – The production costs of an eLearning are very high and not competitive for a very complex training program: Take into account that for a single hour of eLearning, around 40-80 hours of work “behind the scene” are needed. The longer the training, the more competitive the cost of classroom training, compared to the cost of eLearning.
4 – An eLearning module that will not require significant changes, can be used repeatedly and will be distributed to a large number of participants, is the most convenient choice, since the high production costs will be amortized over time.
5 – Finally, don’t forget that there are topics that are more suitable than others for a live training (e.g. soft skills) and for eLearning (e.g. system training).
Not only monetary factors should be taken into account to support one choice or another. Interestingly enough, non-monetary or qualitative factors play a perhaps more important role in choosing the training format.
Utility Factors for eLearning
- Participants can train directly from their workplace (trainees availability)
- Participants can learn at the speed that suits them best (flexibility)
- Quick changes can be made (modifications)
- Contents are always available (availability)
- The platform can also be used for other purposes (multifunctionality)
Utility Factors of a classroom training are:
- The constant contact of pupils and teachers (contact)
- The possibility of networking in and outside the training context (social component)
Here we present an overview of the non-monetary factors that may be relevant. A particular weight has been assigned to each, as not all of them have the same impact.
The cost-value estimation needs to be carried out on the basis of hard and soft facts. You are the expert and it will be up to you to create a balance of the factors set out in this series.
In case you need professional support, we are here to remind you that The Coaching Heads offer mentoring and coaching programs on the subject. Contact us today for a free consultation!