Having your own business can mean a lot of unexpected costs. One such cost is the training of your employees. You want the bets in the business but that means you need to train them specifically to your business and that takes time. That means you need to calculate the cost of training them versus how much they will bring back as an employee or your return on investment.
The Cost Analysis & ROI Calculator enables you to calculate the costs and return on investment of 2 training options that you can use to play out the best scenario for your business. The information you enter into the first two worksheets of this Excel document (Total Cost–Method #1 and Total Cost–Method #2) will be used to automatically calculate ROI, total savings, the breakeven point and the best training value on the third worksheet (ROI Calculation).
To get started with this free template today, just follow the link at the bottom of this page.
How to Use the Training Costs ROI Calculator
Once you have successfully downloaded the free template file to your computer, you can open the sheet to start customizing it. In general, you will follow the two simple steps below.
1. Enter all pertaining details under the Total-Cost Method 1 and Method 2.
2. Now go to the ROI Calculation tab. You’ll find the best method calculated out for you.
We will run through the first method so you know how to enter the data you need. Start at the top of the Method 1 page and enter the “Class Demographics” data.
You will enter how long you plan on training the employee, how many days of continued training throughout the year they will need, how many trainees you have per year, travel information (if needed), and how many total years they will require training until they have mastered their material.
Now, you will need to enter any one-time development costs for the training. This will include the cost of each employee based on the hourly wages, trainer salaries, production and materials (software, training space, equipment used, etc.).
You will also need to enter any recurring development costs (costs that you need to pay continuously throughout the year for supplemental training or updated training).
Finally, you need to enter all the costs associated with all your employee, such as their annual salary, the number of days worked per year, travel costs, and materials they will need to use.
You will also total out the costs for instructors and facility costs as well. This will give you the grand total of all your employees and the cost of training them per year (highlighted in black at the bottom).
The Method 2 sheet is set up the exact same way. You will simply change the number and play with a completely different setup.
When you finish the second sheet, go to the “ROI Calculation” tab below. This sheet compares Method 1 and Method 2 to give you the best results for your business. In the example given, you can clearly see that Method 1 is the significantly cheaper option for this business.
You can get the best value for the amount you invest in your employees by using this simple template to save your business a lot of money. Get started today by following the link below.
Download: Training Costs ROI Calculator
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