Training frontline hourly workers in any business requires careful consideration of costs. Learn how to calculate training expenses effectively and allocate resources efficiently with this step-by-step guide.
As part of your Opus evaluation, we'll help you calculate your costs and potential savings. If you want to learn how Opus can improve your bottom line, book a demo here.
How Do Businesses Train Their Frontline Hourly Workers?
Training frontline hourly workers involves a combination of formal learning and practical experience. In the Learning & Development industry, using a combination of trainings is referred to as “blended learning.” Here's a breakdown:
- Paper Training: Employees receive training materials to learn about company rules, procedures, and specific knowledge.
- Shoulder-to-Shoulder Training: Workers shadow experienced colleagues, perform supervised tasks, and gradually take on more responsibilities.
- Role-Specific Training: Employees receive job-specific training tailored to their roles.
- Continuing Education: Ongoing learning through training sessions, workshops, and industry events keeps employees updated.
Understanding these training methods helps in estimating costs more effectively.
Hidden Costs to Consider
Estimating training costs for frontline hourly workers requires accounting for hidden expenses often overlooked. Consider these factors:
- Lost Productivity: Training time takes employees away from their regular work, affecting productivity.
- Staff Turnover: High turnover rates can increase training costs and diminish the value of investments.
- Repeated or Refreshed Training: Certain programs may require periodic renewal, incurring additional costs.
- Technology and Equipment: Costs associated with acquiring and maintaining training resources.
- Administrative Tasks: Scheduling, tracking attendance, record-keeping, and program management.
- Training Evaluation and Improvement: Resources required for assessing and enhancing training effectiveness.
These hidden costs can be significant, especially when you have an inadequate training program or rely mostly on live, in-person trainings. Factoring in these hidden costs ensures a more accurate estimate of the investment needed for effective training.
Steps to Estimate Training Costs
Follow these steps to estimate the cost of training frontline hourly workers:
- Identify the relevant training programs.
- Determine the training hours required for each program.
- Calculate the total training hours based on the number of employees and duration.
- Determine the costs associated with trainers or instructors.
- Factor in staff wages during training sessions.
- Calculate the total administrative hours for program management.
- Factor in the wages of administrative staff involved.
- Estimate material costs, such as manuals and videos.
- Calculate the total training cost by combining all relevant expenses.
- Consider other related expenses that may arise during training.
Remember, actual costs may vary based on factors like workforce size and specific training requirements.
Conclusion
Accurately estimating training costs for frontline hourly workers is crucial for effective financial planning and resource management.
It also helps you assess how a training platform like Opus can actually save you significant amounts of money in addition to training your staff better. In fact, by blending digital training with in-person training, Opus customers have seen upwards of 50% reduction on training labor time for employees and managers alone.
As part of your Opus evaluation, we'll help you calculate your costs and potential savings. If you want to learn how Opus can improve your bottom line, book a demo here.
