Including: training materials, training lecturers, venue fees, equipment rental fees, indirect costs of students, etc.
If any enterprise wants to carry out training, the first question to understand is: What is the cost composition of training? What are the benefits of training? When choosing a training course, what is the difference between a course with 800 yuan and a course with 1 200 yuan? This is a problem that puzzles many enterprise presidents.
Achiev Global is one of the largest professional training companies in the world. At present, 463 Fortune Global companies are clients of Achiev Global. Zhiyue Company entered China from 1992 and served China enterprises for ten years. So, how does Zhiyue Consulting analyze the training costs and benefits with customers? Fan Lishi, CEO of Zhiyue Company in China, made the following analysis and introduction with a company case.
Recently, we successfully helped a customer find out the real cost of training, and also helped them see where to focus in order to maximize the return on training investment.
Let's start with the case of this American technology industry company.
How much does the company pay a salesperson a day?
First of all, let's analyze the real expenses of a professional salesperson: the average salary in this field plus benefits, the approximate income of a salesperson is190,000 US dollars. This includes direct wages, insurance, stocks, taxes and other state and government expenditures. In addition, there are indirect expenses including cars, insurance, houses, other supplies, necessities, business trips and entertainment. Plus the company's recruitment expenses, training and post adjustment expenses. These projects add up to an annual cost of 40 thousand dollars.
Another big expense related to sales staff is the huge expense of technical support department. Most companies we work for have technical support departments (design, system engineering, technical project consulting, etc.). ) Because their customers have little or no support in this field. The expenditure of these departments is only a part of the cost of sales in many cases. Most customers think that it costs more than $200,000 to pay an engineer every year. Assuming that a quarter of its expenditure is used to support sales staff, it is $50,000.
According to this analysis, the total cost of hiring, training, supporting and maintaining a salesperson in this market is $280,000. Of course, this figure is still very conservative, because many of our customers' figures are between 350 thousand? Between 400,000 dollars.
According to the 225-day working day of American companies, the daily expenditure of a salesperson is about $65,438+0,350.
Calculate the indirect cost of the three-day training
From this, we can calculate that the direct cost of sales staff is $5,400, assuming three days of training courses and one day of business trip.
Direct travel is per ticket. 400 yuan? 1 600 USD, with an average meal fee of 75 USD per day. Three nights' accommodation plus tax averages $400. The meeting fee per person per day is $35. Other expenses (taxi fare, tips, telephone charges) are $25 per day. So the total cost of travel and accommodation per person is $65,438+$0,600.
Together with these direct costs, the cost of each person participating in the three-day training is $7,000.
These expenses are not included in the training itself. This figure looks very high. (see the picture below)
What's the difference between $800 and $65,438+0,200 training courses?
The organization cost of the company's training department is about $65,438+0,600 per day, which is basically the same as that of the trainees. Daily expenses of training department leaders 1500? Between 2500 and 7600 dollars. Average these expenses to a small class of 18 students, and each person spends 422 dollars. Add this cost to 7000 dollars and you will get 7422 dollars.
When analyzing the difference between $800 and $65,438+$0,200 training courses, if you only add your own expenses on the above basis, you will get $8,222 and $8,622 respectively. The cost difference between the two training courses only accounts for 4.8% of the total training cost, instead of 50% as previously thought.
How to compare the return on training investment
Comparing the return of training investment is a very important part of training investment. In two studies conducted by professional organizations, we found that training in the field of sales can produce the following five effects. They are:
1. Without training, it is impossible to complete the sales.
2. Stop selling immediately, thus reducing the company's losses.
3. Expand the sales scale, thereby expanding the company's income.
4. Win the marginal profit of sales and increase the company's income.
It is better to give up the business opportunity.
All these situations are influenced by personal experience. Some are easy to solve, such as increasing marginal profits. Some are almost impossible, like giving up sales. The consulting organization recognizes that training courses will have different effects on each participant's company.
The research on some training customers shows that through sales training, the sales amount reached 3.5 million US dollars, the customers created more than 700,000 US dollars in profits, and the average expenditure of each participant was 8,622 US dollars. The return on investment of such a training is very obvious. Among them, whether the training course is $800 or 1 200 is not the most critical difference. The most fundamental issue is the return on training investment.
What training participants should consider is: How is the result of return on investment calculated? The analysis method given above will help enterprises to define this.
Group companies, sales executives and training officers should pay attention to everyone's training expenses, but this is not the only one. More importantly, they should be able to predict the real value and carefully evaluate the investment and return of training on the basis of considering the return on investment of trainees.
Editor's Note: This paper analyzes the case of a high-tech company in the United States. Numerically, it is very different from domestic enterprises. However, for enterprises in China, the most valuable reference is to truly regard training as a thing with return on investment and find some methods to analyze its cost and return on investment.