KPI Benchmarks : Training Expense per Employee
- Benchmark Range $163 - $1,101
- Benchmark Average 588
- Benchmark Sample Size (n) 26
* Is High or Low Best: Lower is Better
Download a Sample Training Expense per Employee
KPI Details : Training Expense per Employee
Training Expense per Employee measures the average cost of training a single employee over a certain time period (typically measured annually). While training costs should be controlled and kept at reasonable levels, spending in this category must be weighed against the company's strategy in developing talent and overall capabilities throughout the organization. High quality training and employee development programs can boost workforce productivity, morale and work quality while also reducing employee turnover rates. Consistent, up-to-date training programs may be of particular importance within industries or job functions where employee/customer health and safety must be taken into account (e.g., heavy manufacturing, transportation, etc.). Typically, large organizations are able to achieve economies of scale related to training costs on a per employee basis, while small and medium-sized organizations can expect to pay more per employee to keep their training programs running and up-to-date.
KPI Best Practices : Training Expense per Employee
- Utilize webinars and e Learning to minimize need for training personnel
- Synchronize training with hiring cycles to reduce number of training sessions needed
- Eliminate or combine training areas when possible
KPI Calculation Instructions Training Expense per Employee?
Two values are used to calculate this KPI: (1) total training and development costs incurred by the company, and (2) the number of employees undergoing some form of training over the same time period. Training and development expenses should include any labor costs (wages, salaries, benefits) paid to internal training staff and any technology and third-party vendor spending related to employee training (e.g., training-related conference costs, online training technology costs, training vendor spending, etc.). Do not include employees that did not undergo any training during the measurement within the denominator for this calculation.
KPI Formula :
Total Training & Development Expense / Number of Employees Undergoing Training
Training Hours per Employee
The number of hours existing employees (does not include new employees) spend training divided by the number of employees undergoing training over the same period of time.
KPI Type : Quality
Formula : Total Number of Hours Existing Employees Spend Training / Number of Employees Undergoing Training
KPI Benchmark Range : 14.1 - 41.5