Reduce Costs To Acceptable Levels

Consider this. The total training expenditures in the U.S. rose significantly in 2017, increasing 32.5 percent to $90.6 billion, according to Training magazine's 2017 Training Industry Report. Yet, even though spend continues to rise, very few senior executives can answer the question, “How much are you spending on training?”...And even fewer can answer, “What value are you getting from your training investment?” This is because direct training costs are only part of the picture. When you look at all the costs of training, both direct and indirect, you are most likely managing less than you are spending. Hidden costs can include lost productivity while training, the cost of poor quality and rework due to ineffective training, and salary and benefits of participants while training.


In our experience, we have found that indirect costs of training are almost 3 to 5 times that of direct costs. We have also found that in large organizations, training programs may have many cases of duplication and redundancy, which compounds the total costs of managing training programs.

The central tenet of our running training like a business approach is to expose the hidden costs of training and bring both direct and indirect costs to acceptable levels. We do this through a number of steps:

  • Eliminating duplication and redundancy in learning roles and responsibilities

  • Eliminating duplication and redundancy in content and delivery

  • Shifting current work from higher to lower cost labor (i.e. professional / tech to support)

  • Better leveraging technology and alternative delivery methods to reduce staff and travel costs