Question

Training programs are at the heart of person-focused pay programs. The following is a sample training budget.

Development costs (salaries, benefits of personnel, equipment) = $30,000

Direct implementation costs (training materials, technology costs, facilities, travel, equipment, instructor’s salary and benefits) = $12,500

Indirect implementation costs (overhead, general, administrative) = $95,000

Compensation for employees while they are in training = $240,000

Lost productivity or costs of ‘backfilling’ positions during the training = $200,000

1) Add the costs listed and enter the total cost of training based on the data above:  

2) Assume that 100 employees will participate in this training program. What is the average training cost per employee? (hint: divide total cost by number of employees):  

3) Employee salaries are based on an hourly rate of $20 and 100 employees receive training. Based on total compensation for employees while in training (see line item 5 above), how many hours does each employee spend in training? (hint: There are several ways to do this. One way is to take your total cost from line 5, divide it by number of employee receiving training to calculate the cost per person. Then take that cost per person in dollars and divide it by their hourly rate).

Answer 1

Use spreadsheet for the ease in computations. Enter values and formulas in the spreadsheet as shown in the image below.

The obtained result is provided below.