Do you know what your real training costs are?

1. Not Information Technology …Information Solutions
How To Understand What
Your In-Service Training
Program Really Costs You
Augury Network Advisors, LLC

2. As a provider of support or care services, you know that your
entire Direct Support staff requires continual training.
First-year employees
need critical training in
their first 90 - 180 days.
Veteran employees must
be recertified annually or
biannually.
New employees need to
be oriented on their first
day.
How do you
meet all
those
training
needs?

3. Most care provider agencies conduct In-Service
programs using conventional training methods.
Classroom-based
Instructor-led
At corporate headquarters
During non-prime working
hours: late afternoon, early
evening
Every aspect
of this
approach
has a cost.
= Mileage, Travel time
= Facilities costs, space
= Trainer salary, prep
= Salary, overtime, substitutes’
salary, meals

4. Let’s analyze these costs more thoroughly…
Trainees(that is, employees)
• New hire employees
• Veteran employees
Trainers (typically, also employees)
• Seasoned, experienced employees
• Sometimes outside contractors
and Training Resources
• Classroom and fixtures
• Class consumables: handouts, books
Three Categories of Costs

5. Trainee Costs
Costs per
individual
trainee
Travel expense
• Mileage
• Time
Meals /
refreshments
during training
session
Salary
compensation
during training
session
Salary
compensation
for worker
substitution
And when employees have to cover
shift assignments …
+
+=
+
Starting with

6. Costs per
individual
trainer
Trainer Costs
Then looking at
=
Travel expense
• Mileage
• Time
Meals /
refreshments
during training
session
Salary
compensation
during training
session
+
+

7. Costs per
training
resource
Operating cost of
allocated or
dedicated floor
space
Consumable
course materials
+
Facilities Costs
And finally
=

8. Total Training Costs For A Year?
Annual costs rise with number of class sessions
held during the year
Class sessions are driven by …
• number of topics
Class sessions are driven by …
•class size capacity
Class sessions are driven by …
•number of trainees who must attend
1 topic per class
No more than “x” trainees at a time
New hire requirements
Veteran re-certification requirements

9. employees Number of sessions
mileage
meals
Covered salary
Overtime
Shift coverage hours
Training hours New hires
Turnover rate
compensation
Classroom capacity
Attendance rate
Repeat classroom sessions
Unit cost
Extended cost
With so many
contributing factors,
how can you
calculate a complete
picture of costs?
By using a model…

10. A financial model
organizes those
parameters, and their
dependencies.
A model lets you
experiment with
different values as
inputs, in order to
study the impact on
the outputs.
A model produces
projections of your in-
service training
program …

11. … so we built a model
Input
s
Outputs
Comparison
s
based on 27 parameters you can adjust
that instantly projects your costs
and compares the impact of several factors…

12. … letting you quickly devise various “what if”
scenarios and evaluate cost effective alternatives
to ongoing in-service training program costs.

13. Visit www.augurynet.com/training to download a
free copy of our Conventional Training Costs
Analysis, and simply open it on your own
computer as a Microsoft Excel workbook. Enter
the details from your own enterprise and see
what your in-service training programs really
cost.
And keep in mind, it could cost less.
Augury knows.
Not Information Technology …Information Solutions
Augury Network Advisors, LLC
[ www.augurynet.com ]