Question

As the HR director of Pentium Z Ltd., you are required to defend your inputs for the budget of the year 2020 at the next budget hearing conclave. prepare a strategic paper in favor of a proposed $200,000 you are requesting for HR training and development

Answer 1

NOTE: the employee strength and training requirements are considered

The success of a company mostly depends on its people and well-trained employees are essential for this success.

The appropriate training program will increase employee engagement, retention, and productivity. Since well-trained employees make fewer mistakes, the need for supervision reduces. Again, as proper training improves performance employees feel valued and appreciated, increases commitment and reduces absenteeism; improves customer service, and boost sales.

Reducing training, thus, can have long-term implications.

According to the Training Industry Report, an average training cost per employee 2016 comes to $1,041. Since our organization has 1234 people, the suggested amount of $200,000 is completely logical, as explained below.

Classroom training costs have been empirically proved as follows:

Budget calculations for the same are as follows:

• Classroom training for soft skills required - 1 day per person
• Number of batches required = 35 (strength of 35 people per batch)
• The total cost of classroom training = $109750
• 224 employees need additional classroom training for 1 day for skill-building => approx 7 batches =>$14973
• New e-learning content production costs = $75,000 ( 5 hrs of learning content@ $15,000 per hour)
• Thus, the total comes to $199,723

This leaves us with only $277 as operational costs. We are hoping to reduce vendor costs, meal costs and rental costs to be able to cover the operational costs - which looks like a possibility as of now.

I hope the above details are convincing enough to clear the proposed budget of $200,000 requested for HR training and development.