Cost Comparison Resources
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As self-paced online learning becomes a mainstream delivery method, managers are required to compare it against traditional classroom training. Training professionals agree that as the learner count increases, it becomes more cost effective to deliver training online. We provide customers with cost comparison tools to determine when it is more cost effective to deliver online. TraCorp helps companies save money by converting their classroom training into online learning.
See the case study below to learn how one company compared the cost of its existing classroom training to online. After reading the case study, you can download your own cost comparison form in spreadsheet format. Be sure and call TraCorp if you need assistance with your analysis.
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| Case Study of Classroom Versus Online Delivery of Training |
A TraCorp healthcare customer had a requirement to train 500 learners. It would require 25 weeks to cycle the learners through a traditional classroom or 1 week to train all of the learners using custom online training.
After calculating a total cost savings of $1,294,000, the company decided to choose an online learning delivery strategy to save money and train the employees in a shorter time frame.
Table 1 below lists all of their basic information used to compute training costs. Table 2 sums the components to derive their total cost information comparing classroom with custom online training.
A. Total number of learners | 500 | 500 |
B. Training duration in hours | 40 | 10 |
C. Average learner hourly wage | $10 | $10 |
D. Average lost productivity cost per learner/per hour (how much money the company makes per hour when the learner is on the job) | $50 | $50 |
E. Training supplies and materials per learner | $50 | $0 |
Instructor Costs: |
F. Instructor preparation time in hours | 8 | 0 |
G. Instructor hourly salary | $25 | $0 |
H. Number of scheduled training sessions | 25 | N/A |
Travel Costs: |
I. Total number of people traveling | 500 | 0 |
J. Training duration in days | 5 | N/A |
K. Airfare cost per traveler | $320 | $0 |
L. Hotel costs per traveler/per day | $100 | $0 |
M. Rental car costs per traveler/per day | $50 | $0 |
N. Meal cost per traveler/per day | $35 | $0 |
Training Development Costs: |
O. Labor hours required to develop one hour of training | 32 | 400 |
P. Instructor/Developer hourly wage/cost | $50 | $90 |
Facility Costs: |
Q. Facility cost per training event | 500 | $0 |
Time Required to Train Audience: |
R. Total time required to complete training (in weeks): | 25 | 1 |
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Learner cost (A x B x C): | $200,000 | $50,000 |
Lost productivity cost (A x B x D): | $1,000,000 | $250,000 |
Training supplies and material cost (A x E): | $25,000 | $0 |
Instructor cost ((B + F) x G x H): | $30,000 | $0 |
Travel cost (I x K) + ((I x J) x (L + M + N)): | $622,500 | $0 |
Training development cost (B x O x P): | $64,000 | $360,000 |
Total facility cost (H x Q): | $12,500 | $0 |
Total Training Costs: | $1,954,000 | $660,000 |
| This spreadsheet allows you to input your costs electronically. The table then automatically calculates a cost comparison between classroom training and custom online training.
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Pricing is subject to change without notice. |
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