First, Quantify the BenefitsTime Is Money, ROI

This is the crux isn’t it. How do you know money on a workshop is well spent? How do you measure your return on investment when it comes to productivity? It’s important to have a baseline; know how long a task or process takes before training. Then it can be measured after training to see actual ROI.

Time Savings

– Shorter lead time to reach proficiency (hours saved x dollars per hour)
– Less time required to perform an operation (hours saved x dollars per hour)
– Less supervision required (supervisory hours saved x supervisory pay per hour)
– Better management of time (hours freed x dollars per hour x opportunity cost of freed hours)

Increased Productivity

– Faster work rate (dollar value of additional units, sales, etc.)
– Time saved by not waiting for help (hours saved x dollars per hour + hours of helpers time saved x dollars per hour)
– Decreased downtime (dollar value of reduced nonproductive time) Improved Quality
– Less scrap produced (dollar value of scrap x decreased scrap level)
– Fewer rejects (dollar value of reject x decreased reject level)
– Improved market share (percentage increase in market share x dollar value of increase)

Better Personnel Performance

– Less absenteeism/tardiness (hours of increased production x dollars per hour)
– Reduced grievances, claims, accidents (dollars saved on paperwork, actions, medical claims, insurance, and lost time)
– Avoiding the need to hire new employees (salary and benefits savings)

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Rachel Murray
Business and Software
Trainer/Consultant
780 224-7805
rachel@capitalr.ca
Alberta Insurance Counsel, accredited, financial planning standards counselCAJG logo small