Training costs
It is advisable to review company resources before embarking on any training activity. If your company does not currently have a training budget, developing one will assist you in deciding whether proposed training plans can be supported. It is important to include all training costs, direct and indirect, in a training budget.
The direct costs of training may include:
- the training provider's fee
- the cost of training materials, if they are not included in the course fee
- travel and accommodation costs for participants, if necessary
- development of training materials, if appropriate.
The indirect costs of training may include:
- participants' wages, including all on-costs, such as tax, superannuation and workers' compensation
- the cost of temporarily replacing staff, or the cost of productivity loss while they are being trained
- the cost of management time spent setting up the required training
- any administrative costs and utilities related to the training activity.
The size of your training budget and the proportion of direct and indirect costs will depend on the training option you choose. As with any other business expenditure, there are fixed costs and variable costs associated with training, which means that usually the more training the company provides, the lower the cost per staff member.
Having a training plan and budget that dovetail with your business plan and overall budget will ensure that your training activities are consistent with your business goals and objectives.
Training will then become both an investment and a tool that can assist in getting the best performance possible from your staff, at the same time increasing their job satisfaction.