Week 12: The Costs & Benefits of Training Programs Flashcards
What is one reason for increased pressure for Information on costs and benefits of training
programs is an important part of training evaluation
96 % of CEOs want to see L & D efforts connected directly to business impact data
and 74% want to see ROI
Why is Cost / Benefit analysis difficult
- Sometimes not everything is quantifiable
- very time consuming and complex
the process of identifying all
expenditures used in training.
COSTING
5 TYPES OF COSTS
1 - Direct 2- Indirect 3- Developmental 4- Overhead 5- Trainee Compensation
What are: Direct Costs
Costs Linked to the Training program
What are: Indirect Costs
Costs that support training activities and are not
directly linked to the program
What are: Developmental Costs
Costs that are incurred in the development of a
training program
What are: Overhead Costs
Costs incurred by the training department but not
associated with any training program
What are: Trainee Compensation Costs
The cost of the salaries and benefits paid to trainees
What type of Cost is this?
Trainer’s salary,
equipment rental
Direct
What type of Cost is this?
Trainer prep & planning, admin support
Indirect Costs
What Type of cost is this?
Needs analysis, developing materials
Developmental Costs
What Type of Cost is this?
Operational costs for the department, staff salaries not linked to a particular training
Overhead Costs
What Type of Cost is this?
Salaries and benefits paid to employees while in training
Trainee Compensation Costs
Benefit - Cost
Net Benefit
