Further training in companies is absolutely essential to keep employees' knowledge up to date. However, seminars and training often consume huge budgets. We analyze how the high training costs are structured and show how digital support can save costs at all sources – without compromising on sustainability.
Training at any cost?
In the rapidly changing economic world, corporate training has become enormously important: Regular updates of specialized knowledge and improvements in communication and technical skills significantly determine the success of companies. Additionally, good training opportunities are a strong advantage for the image of any company.
Professional training is therefore gaining more and more importance. The challenges, especially for HR personnel: Besides the necessary organizational and personnel management, the question of costs – and the benefits in relation to the price – is particularly pressing.
We explain based on nationally collected data what items really consume money – and which methods can save substantially!
All numbers and facts are taken from the annual report “Professional Training in Companies” (2015) by the Federal Statistical Office. The publication is available as a free download .
Facts: The cost of training in companies
The issue of costs is always current, across all business areas. Training is no exception: 33.5 billion euros are invested annually in professional training in Germany. Companies spend an average of €1,793 per year for each participant on courses (as of 2015).
Of this, €947 are direct costs for each participant.
Explanation: Direct costs are all costs incurred by involved parties: Payments for external trainers, personnel salaries for organization and planning, as well as travel and accommodation costs.
Additionally, there are €846 in indirect costs per participant.
Explanation: Indirect costs are the wage costs for the work loss that inevitably occurs due to participation in traditional face-to-face training.
The numbers in relation:
Graphic 1: Direct costs account for about 53% of the total costs for courses in companies; indirect costs account for around 47%.
These numbers are a good starting point to check where expenditures are well invested – and where they are simply wasted.
Potential savings through new learning methods
Significant savings can be achieved in both direct and indirect costs through new methods: For several years now, digital and internet-based teaching and learning methods have been on the rise. Instead of a fixed curriculum and seminar room, the trend is towards self-directed learning on the PC and “mobile learning” on the go.
The personal contact and individual support from a trainer or coach is not possible with digital learning alone. Instead, the combination of both worlds is beneficial. From this, Blended Learning has emerged: The integration of face-to-face and online learning, which combines the advantages of both learning methods.
We have already summarized the advantages of Blended Learning regarding mobility and flexibility in our blog for you: Trend Study: Recognizing 4 potentials of digital learning forms.
Potential savings on direct costs
The direct costs of courses, classes, and seminars arise from four different cost items:
Payments and fees, for example, for booked external trainers.
Personnel expenses for the organization and execution of the measure.
Costs for travel and accommodation of participants.
Costs for rooms, equipment, and teaching materials.
The following graphic shows the proportion of each cost source in the direct costs of a course on average:
Graphic 2: Proportion of different cost blocks in the total costs of courses in companies.
4 ways to save costs with online solutions
1. Reduce costs for payments and fees
Payments and fees often also include travel and accommodation costs when engaging with external educational providers like trainers or coaches. Additionally, there are hourly or daily rates for their presence. However, through Blended Learning, the on-site time can be significantly shortened:
Experientially, it is particularly effective to enable preparation and follow-up on an online learning platform. This way, participants come better prepared to the seminar and can learn the most relevant content face-to-face on-site. They can also be supported online in applying what they have learned in everyday life.
2. Reduce travel costs for participants
Less on-site time with the trainer also means less on-site time for participants. The 13% costs for travel, accommodation, and catering for employees can be drastically reduced:
One example: If instead of three seminar days, only one day of presence is necessary, this saves twice the travel and catering costs. With long-term online follow-up, participants can consolidate what they've learned without direct contact with the trainer.
Tip: For the combination of on-site and online time, we have already presented various models in Blended Learning. Depending on the model, the on-site time can vary in intensity.
3. Reduce costs for rooms and materials
The fewer on-site appointments need to be planned, the less frequently external seminar rooms are required. Thus, costs for rentals and equipment (such as computers or projectors) decrease.
If learning materials are also made available online, this results in savings on printing costs. Small bonus: Those who only print the bare essentials are also protecting the environment! :)
4. Reduce costs for personnel expenses
The organization of training is complex and often time-consuming. Even with Blended Learning, content must be compiled and uploaded to the platform. Humans cannot be replaced!
However, content that is available online can be reused repeatedly. Online courses can be quickly and flexibly adjusted as needed. In the long run, this can therefore save working hours or even reduce (overtime).
Thus, regarding the direct costs arising mainly from necessary travel and working hours, substantial savings per capita can be achieved by combining face-to-face and online learning. This also affects indirect costs!
Potential savings on indirect costs
Training is often still bound to presence. If a participant is absent from the workplace, they must work longer elsewhere or be represented by another worker. This incurs indirect costs: additional wage costs!
On average, each participant spends about 22 working hours per year on courses for professional training. It does not matter whether these are internal or external events: In any case, an employee is absent from their workplace for 22 hours a year.
Savings on work loss
The savings on direct costs through less presence time also impact work loss: Those who spend less time in the seminar room or traveling have less downtime.
However, the effectiveness of training does not diminish: Blended Learning thrives particularly on short, mobile learning units that can be worked on at the workplace as well as on the go.
Therefore, not only does the company save money as fewer working hours become lost, but the participants also save time and hassle – integrating learning smoothly and flexibly into their daily lives.
Conclusion: Blended Learning saves real money!
Being independent of time and space is one of the greatest strengths of Blended Learning without compromising on sustainability:
An intensive online support allows for the reduction of presence time.
Less presence time reduces travel costs for trainers and participants.
Additionally, costs for hotel and room rentals are minimized.
Mobile online learning results in less work loss.
The financial savings potential is not the only advantage: Overall, Blended Learning offers a total of seven brilliant arguments to start Blended Learning in your company too! Download the free PDF and convince your colleagues and bosses of the digital learning of the future!
