Hrm Training Costs, Accounting And Benefits Capture

Front 1

Allocation of costs

Back 1

-Distributed across organizational budgets
-Assigned to managers who have no control over the funds
- Unrelated to actual costs

Front 2

Benefits of cost allocation method

Back 2

- Simple to administer
- Managers don't control funds
(CFLL model)

Front 3

Disadvantages of cost allocation method

Back 3

-No incentive to training group to improve training delivery
-Unrelated to actual costs

Front 4

Selling the service

Back 4

Selling training courses or programmes to department; need pricing to be competetitve, course relevance to business needs (Generic Training model)

Front 5

Policy costs

Back 5

Training included in policy costs and accounts, deducted from budgets (cost centre approach, e.g. CRMB ODOE)

Front 6

Utility analysis

Back 6

Forecasting net financial benefits that result from HR programmes such as L & D

Front 7

Overhead costs

Back 7

Costs of such items as leasing or renting premises, administrative and clerical support, mailing costs, lighting, heating, etc.

Front 8

Trainee compensation costs

Back 8

The cost of paying trainees' salaries, wages and benefits while they attend training; also applies to replacement staff when trainees attend training

Front 9

Developmental costs

Back 9

The cost of developing training materials, videos, handout materials, pre-reading, etc.

Front 10

Direct costs

Back 10

Costs such as the trainer's costs or vendor cost for training delivery; cost of training materials provided during training; food; travel; equipment

Front 11

Indirect costs

Back 11

Costs of training marketing, administrative staff salaries and benefits to prepare materials, pre-sent materials, etc.

Front 12

ROI (Return on Investment)

Back 12

The cost of the training programme relative to its benefits
ROI = Net prog benefits/cost

Front 13

Net benefit

Back 13

Est value of the performance improvement over the cost of improving performance
Net ben = value of perf impr/cost of improving perf

Front 14

Cost-benefit evaluation

Back 14

Comparison of cost of training to benefits in non-monetary terms

Front 15

Cost-effectiveness evaluation

Back 15

Comparison of monetary costs of training to benefits in monetary terms