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We now know the difference between fixed and variable costs and we can move on to analyze the resources invested for the conception, production and implementation of a training in a traditional or electronic format. We chose a sample training. The data below must be updated from module to module. Some items may not be relevant to your case, or you may want to add other items to the table.
General data
- Training name: Data protection
- Training duration: 30’
- Number of scheduled sessions: 15
- Overall training duration: 30*15 = 450’/ 60 = 7.5h
This value is relevant for calculating the impact of fixed costs as observed in the previous article – see “The role of fixed costs and variable costs in calculating training costs” in our Coaching Room. We set those costs to 54.5 €/h. We multiply this by 7.5h of training in total. Fixed costs will be unchanged as they are not connected to the training format.
Fixed costs: 408.75 €
Participants’ Dimension – Premises
- Cost of covering the participants’ absence from work: 30 €/h
- Participants per session: 20
- Total participants: 300
Participants’ Dimension – Math
In order to walk to the training room and get back to their workplace (without commuting costs) we calculate a total of 20’ p.p., so the participant’s absence will be 50’ in total = 25 € p.p.* 300 participants = 7,500.00 €
In the electronic format, the absence will amount to the pure 30’ of the session and will thus cost 15 € p.p.* 300 participants = 4,500.00 €
Training design dimension – Premises
- Cost of a trainer per hour: 40 €
- Cost of a coordinator per hour: 50 €
- Cost of an eLearning Author per hour: 80 €
Training design dimension – Math
- Training concept = 2h*40 € = 80 €
- Production of the detailed script = 5h*40 € = 200 €
- eLearning production 40h*80 € = 3,200 €
- Carrying out the training (classroom): 7.5h*40 € = 300 €
- Carrying out the training (eLearning): 0
- Classroom training coordination: 5h*50 € = 250 €
- Coordination eLearning: 2h*50 € = 100 €
So let’s put everything in line now:
| Cost per Hour | Quantity | Commuting time | Training in hours | Total time in training | Cost in Presence | Cost in eLearning | |
| Fixed Costs | 54,50 € | 7,5 | 409 € | 409 € | |||
| Covering participants’ absence from work | 30,00 € | 300 | 20 minutes | 0,5 | 250 | 7500 € | |
| Covering participants ’absence from work | 30,00 € | 300 | 0 | 0,5 | 150 | 4500 € | |
| Training Conception h | 40,00 € | 2 | 80 € | ||||
| Training Script h | 40,00 € | 5 | 200 € | ||||
| Training Implementation h | 40,00 € | 7,5 | 300 € | ||||
| eLearning Conception h | 40,00 € | 8 | 320 € | ||||
| eLearning Production h | 80,00 € | 40 | 3200 € | ||||
| Implementation eLearning | 0,00 € | 0 | 0 € | ||||
| Training coordination h | 50,00 € | 5 | 250 € | ||||
| Training coordination h | 50,00 € | 2 | 100 € | ||||
| PRESENCE | ELEARNING | ||||||
| TOTAL COSTS | 8739 € | 8529 € |
Let’s compare the two formats: We have a winner! eLearning costs slightly less than classroom training. But what are the considerations to be made at this point? Does the fact that eLearning cost less in this example means that in general offering electronic formats is cheaper than classroom training? And what are other non-monetary factors that play a role in choosing the right format?
We will find out in the last episode of “Controlling in Blended Learning”. Stay tuned for an exciting showdown!
