Return on Investment Estimator for Classroom Training
Select a value in each drop down box and then click on "Click to calculate estimated ROI".
Choose a course
Number of students to train (in one offering)
Location where training is to take place
Approximate annual average salary for each student (US Dollars)
Percent of time student will be using skills from this class
Percent improvement in productivity you expect in these skills
Results
Course
Duration (Days)
Class Size
Location
Training Cost
Initial Value
Returned Value
Increase in Value
Net ROI after costs
ROI Rate
(All amounts are in US Dollars.)
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Notes about Return on Investment
You realize a return on investment from training because your people become more
productive - they can accomplish more work in the same amount of time
One way to realize this is cost avoidance: you may not need to hire additional people
because your trained employees are more effective
Another way to realize this is that projects may be accomplished more quickly or with
higher quality (or both)
Still another way you might realize your return on your training investment is your
people now have the ability to accomplish applications they could not have even
attempted before
Training also tends to improve employee satisfaction, which can lead to lower turnover
rates, saving on the cost of hiring and inducting new people regularly
Other notes
The prices used here for training costs are based on The Trainer's Friend
standard prices, which always include instructor travel and living expenses
Your actual prices may vary due to factors such as small class size, volume purchase
of training days, delivery approach, and other circumstances
Presumably you would not schedule training for a person if they spend less than 10%
of their time, say, applying the skills you are training them in
There is also some contention that without training a person's skills erode, as the
products they use evolve but the worker does not learn how to use new features,
so without training you get a slowly declining productivity
These calculations use simplifying assumptions to yield approximate results. For information
about the details of the calculations, feel free to email steve@trainersfriend.com.
