Continuing education 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 costs of continuing education are made up and show how digital support can save money at all cost sources – without compromising on sustainability.
Continuing education at any cost?
In the rapidly changing economic world, corporate continuing education has become enormously important: Regular updates of expertise and the improvement of communication and technical skills significantly determine the success of companies. Moreover, good continuing education opportunities are a great asset to the image of any company.
Professional continuing education is therefore gaining more importance. The challenges, especially for HR personnel: Apart from the necessary temporal and personnel organization, the question of costs – and benefit relative to price – is particularly important.
We explain, based on nationwide collected data from Germany, which items really consume money – and with which methods savings can be achieved!
All numbers and facts are taken from the annual report "Professional Continuing Education in Companies" (2015) by the Federal Statistical Office. The publication is available as a free download.
Facts: The cost of continuing education in companies
The issue of costs is always current, in all areas of business. Continuing education is no exception: 33.5 billion euros are invested annually in professional continuing education in Germany. Companies spend an average of 1,793€ per year for each participant on courses (as of 2015).
Of this, 947€ accounts for direct costs for each participant.
Explanation: Direct costs are all costs incurred by people involved: Payments for external trainers, salary costs for organization and planning, as well as travel and catering expenses.
In addition, 846€ indirect costs per participant are incurred.
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 around 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 expenses are wisely invested – and where they are simply wasted.
Potential savings through new learning methods
Real money can be saved, both on 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 fixed curricula and seminar rooms, 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, a combination of both worlds is worthwhile. This has led to the development of Blended Learning: The integration of face-to-face and online learning, combining the advantages of both learning methods.
We have already summarized the advantages of Blended Learning in terms of mobility and flexibility for you in the blog: Trend Study: Recognizing 4 potentials of digital learning formats.
Do you want to try a platform for Blended Learning and quickly design your own content online? Then try blink.it yourself with the free ADMIN DEMO:
Saving potential on direct costs
The direct costs of courses, classes, and seminars arise from four different cost points:
Payments and fees, for example for booked external trainers.
Personnel expenses for organizing and conducting the measure.
Costs for coming and going and catering for the 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: Share of different cost blocks in the total costs of courses in companies.
4 ways to save costs with online solutions
1. Reduce costs on payments and fees
Payments and fees for external educational providers such as trainers or coaches often also include travel and accommodation costs. Additionally, there is the hourly or daily rate for their presence. However, Blended Learning can significantly reduce the time spent attending:
Especially effective is, according to experience, facilitating preparation and follow-up on an online learning platform. This way, participants come better prepared to the seminar, can learn the most relevant content face-to-face at the venue. And can be supported online in their day-to-day implementation.
2. Reduce costs on travel expenses for participants
Less time in the presence of the trainer also means less time in presence for the participants. The 13% costs for travel, accommodation, and catering for employees can be drastically reduced:
An example: If only one day of presence is required instead of three seminar days, that saves two times travel and catering costs. With long-term online follow-up, participants can also solidify what they have learned without direct contact with the trainer.
Tip: For the combination of face-to-face and online time, we have already presented different models in Blended Learning. Depending on the model, attendance times can vary in intensity.
3. Reduce costs for rooms and materials
The fewer face-to-face appointments need to be planned, the less external seminar rooms are required. Thus, costs for rentals and equipment (for example, computers or projectors) decrease.
If learning materials can also be provided online, that means savings on printing costs. A bonus: Those who only print the essentials are also keeping the environment safe! :)
4. Reduce costs on personnel expenses
Organizing continuing education 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 always be reused. Online courses can be quickly and flexibly adjusted as needed. In the long run, this can redirect or save working hours.
Therefore, money can be saved per head on the direct costs mainly arising from necessary travel and working hours through a connection of face-to-face and online learning. This will also affect the indirect costs!
Potential savings on indirect costs
Continuing education is still often bound to presence. If a participant is absent from the workplace, they must work longer elsewhere or be represented by another worker. This creates indirect costs: additional wage costs!
After all, each participant spends an average of around 22 working hours per year on courses for professional continuing education. It is initially irrelevant whether these are internal or external events: In any case, 22 hours per year a workforce is absent from their workplace.
Savings on work loss
The savings on direct costs due to shorter presence times also affect work loss: Those who spend less time in the seminar room or traveling have less downtime.
However, this does not reduce the effectiveness of the continuing education: Blended Learning particularly thrives on short, mobile learning units that can be processed at work or while traveling.
Thus, not only does the company save money, as less working time is lost. The participant also saves time and stress – and incorporates learning into their everyday life in a relaxed and mobile way.
Working with a blended learning platform can be really fun! And with variety and fun, learning becomes easier. Try it out for yourself: With our free sample course!
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 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 means less work loss.
The financial saving potential is not the only advantage: Overall, Blended Learning offers a total of seven brilliant arguments to start implementing Blended Learning in your company! Download the free PDF and convince your colleagues and bosses of the digital learning of the future!
