The Real Cost

The hidden cost of training and development

Development

Counting the cost

How much are you spending on developing knowledge in your department? You might think that’s easy to figure it out. Just look at your training expenditure for the last 12 months. However, the figure you get when you add up all training courses fees underestimates the actual cost by a considerable amount

Instant Knowledge - Competent

The Analysis

Knowledge DEvelopment

The First Problem

There are two problems with the traditional method of calculating the cost of developing your staff. First, each staff member will never get the full benefit from any training course.

Let’s say you send ten people on a course and there were one hundred facts covered. If you check what they know after a month, you’re likely to find the following:

Facts remembered (one for each person):
85, 75, 40, 40, 35, 30, 20, 20, 15, 10

Two people got a reasonable benefit, but the rest did not. And those figures will get worse with time. So much of your training budget is wasted. When you spend €10,000 you may only be getting €1000 worth of benefit.

KNOWLEDGE DEVELOPMENT

The second problem

The second problem is that most “training” is done when machines and equipment are down. People “learn on the job” and that’s the most expensive training possible.

Let’s say that a job could be completed in an hour by a knowledgeable technician. If it takes five hours for someone with less knowledge, then the cost includes 4 hours production – which could run into hundreds of thousands of euro. There are also quality and reliability concerns.

Knowledge DEvelopment

The solution

What can be done? There are several things that need to happen, but the primary one is to create materials that will make their job easier. 

That’s what this site is all about – Instant Knowledge.

Instant Knowledge - Competent

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