Every company needs to recruit new employees time to time when there is a requirement to do so. Hiring new employees is not just HR related headaches but hiring a new employee needs additional efforts and there are employee training costs related to that. But these costs are justifiable since they will certainly lead to the pforits in the future.
Different employees have different skill sets and position
The costs associated with training different types of employees differ. This is because the skill levels of no two employees are same and so as their positions. The efforts and employee training costs are different for different types of employees. For example – Warehouse workers have to be trained quickly on the job. But in contrast, a mortgage underwriter needs time to get instructed on the process and needs to understand the complexities and guidelines involved in the job.
Costs associated with the recruitment and administration
The employee training costs related to recruitment and administration varies. For example those workers who get on the job training are relatively affordable as they learn as they go on the job. On the other hand lengthy induction training is the training schedules which you provide the workers before they are ready to begin job functions and you will incur higher costs associated with this type of employee training. The cost of off-site courses and training staff salaries and others are also high in this case.
Elements of calculating employee training costs
Here are some of the basic elements to be used in deciding the employee training costs your company incurs.
Facilities- It means that where the employee training will be conducted? It has to be considered that whether the rooms of a hotel or meeting space is required, whether the training is web or computer based, what are the specific resources required, utilities, software, hardware maintenance and more.
Instructors- The following things need to be considered with regard to the facilitators. Do they need a salary or they are billed by another firm? Should the company pay any license fees for using the materials or the outside firm will do?
Participants- What are the combined salaries and benefits which will be dedicated to the time which is spent on the training activities? What is overall price on time spent on seminars, travel, preparation for training and outside activities?
Marketing and communication- Will there be materials like brochures, pamphlets, postage and direct mails are there to generate interest in training process? Are there any kick-off and information meetings on the training to be provided?
Material- What are the materials which will be used in employee training like media, CDs, books, videos? What is the procedure to obtain the materials? Is there any shipping or transmission costs? Is there any redesign cost associated with the training material?