Cost-Benefit Analysis of Upskilling Investments PPT

This PPT slide, part of the 23-slide Upskilling Strategy PowerPoint presentation, presents a comparative analysis of the costs associated with upskilling versus the potential return on investment (ROI) it can yield. It begins by acknowledging the substantial financial burden that retraining displaced employees can impose, referencing various studies that highlight these costs. However, it also notes that these costs tend to decrease significantly when upskilling initiatives are implemented on a larger scale, such as at a regional level.

Key cost elements are identified, including the financial support provided to employees during their training period, which typically lasts around nine weeks, and the salary of substitutes who cover for employees undergoing training. The slide emphasizes that while training expenses are considerable, they are not necessarily the most significant component of the overall upskilling investment.

On the ROI side, the slide argues that viewing upskilling from a broader perspective can justify the costs. It mentions that severance costs for laid-off employees and the expenses related to recruiting and onboarding new hires can be substantial. The slide suggests that focusing on training just 10% of employees at a time is a manageable approach that can also foster a positive track record for organizational support.

A study cited indicates that for every dollar invested in upskilling, there is a return of at least 2 dollars in revenue or savings. The slide concludes by highlighting the value of employees as assets and the numerous benefits that arise from a well-managed upskilling initiative, reinforcing the idea that investing in employee development can lead to significant returns for both the organization and society at large.

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Employee Training Return on Investment