Costoftraining
•Download as PPT, PDF•
0 likes•326 views
This document discusses human capital and training costs in the United States. It provides statistics on the amounts spent annually on training/development ($210 billion), formal education ($238 billion), and healthcare ($355 billion). It also outlines different cost factors to consider for training including development, delivery, and trainees. Development costs include course design, material development, and administration. Delivery costs include instructor time and materials. Trainee costs include wages, benefits, and overhead. The document advocates for improving training effectiveness and increasing average employee performance and productivity through training.
More Related Content
Viewers also liked
Viewers also liked (15)
Similar to Costoftraining
Similar to Costoftraining (13)
More from SUSTAIN America PAC
More from SUSTAIN America PAC (17)
Recently uploaded
Recently uploaded (20)
Costoftraining
- 1. Human Capital Dollar Amount Spent in America ... Training and Development $210 Billion Formal Education $238 Billion Health Care $355 Billion © 2001, Jerome J.
- 2. Human Capital Cost Factors Analysis and Development •Course Design •Material Development Delivery •Instructor Time •Materials •Administration Trainees •Wages •Benefits •Overhead © 2001, Jerome J.
- 3. Human Capital Cost Factors © 2001, Jerome J.
- 4. Human Capital Money Must Be Kept Busy! © 2001, Jerome J.
- 5. Human Capital Efficiency, (E1) - How Fast Effectiveness, (E2) - How Well… © 2001, Jerome J.
- 6. Human Capital Trainees Delivery Typical Institutions 90% 9% 1% US Company With Largest Development Costs 85% 12% 3% Institutions With Little Or No Formal Training 95% 5% © 2001, Jerome J. Development 0%
- 7. Human Capital Cost Categories Development How It Is Now How IT Could Be $.01 $.05 Delivery $.09 $.20 Trainees $.90 $.30 Total Cost $1.00 $.55 © 2001, Jerome J.
- 8. Human Capital Exemplary Competence Average Performance End Training Start Training Hire Date © 2001, Jerome J. Gr o uctivity Pr o d w th
- 9. Human Capital E2 = Training Effectiveness • PIP (Performance Improvement Potential) • The ratio of Average to Exemplary • PIP = Y(Average) to X(exemplary) © 2001, Jerome J.
- 10. Human Capital Average © 2001, Jerome J. Exemplar
- 11. Human Capital Average New Average Greatly Improved Productivity Economic Gain © 2001, Jerome J.
- 12. Certification Performance Assurance Process Class Supported Activities Participant POA Complete Exercises Internet Supported Activities Register w. Internet Counselor Internet Approve Selected Materials Guided Performance Support • Conduct Client Agreement Meeting • Create System/Job Models • Create Economic Model • Write Performance Opportunity Report (POR) © 2001, Jerome J. Begin Monitor POA Process Approved Work Output Certification
- 13. Performance Opportunity Report... Opportunity Explanation Root Cause Information Technology New computers and software NMG cut off electronically Cycle Time Reduction Cross Platform Communication Strategies Lack of Ability to Share Data Operation Standards Turnover leads to more process errors Unclear Operation Standards Quality feedback Data collection timeliness, Cost of Quality problems usefulness Cost of Analysis: Cost of$135,000 $8,100 SME’s: © 2001, Jerome J. Total Cost to Date: $143,100 Counter Measure Convert platforms Train Axxociates Improve data transfer Improve Training and Operations Standards Update QICS Install monitors Design reports Schedule Cost R.O.I Start End $10,000 180% Oct 97 Nov 97 $2.8M 1400% Nov 97 Mar 98 $800,000 440% Feb 98 June 98 $1,125M 320% Oct 97 Dec 98
- 14. The Six Cell Performance Engineering Model 1 Information Directional Feedback 2 Tools/Resources Hand Mind 4 Skill/Knowledge 5 Capacity Physical Psychomotor Cognitive © 2001, Jerome J. Intellectual 3 Incentive Monetary Constraints 6 Motivation Survival Values