Trainer Outsourcing

Staff trainers cost about the same as contract trainers. It is an economic law for an open market - staffers and contractors cost about the same - otherwise there would be an imbalance of supply and demand. Your market is now open, isn't it time you profited from it?

Use your own data to determine your true staff trainer daily rate.

First, calculate your total trainer cost: Add up all the direct & indirect costs of your staff trainer: compensation, benefits, training, managing, etc.

Next, divide your total trainer cost by the trainer's true billable utilization time to determine your staff trainer rate. True utilization is the actual time spent in profitable work (priced comparable to salary level) versus non-billable time such as holidays, vacations, sick and personal time, conferences, personal training & development, travel, administration, fill time, etc.

Profitable staff trainer rates are based on true trainers' cost divided by trainers' true billable utilization time.  Are your rates profitable?

Another way to look at it is to compute your total trainer cost by using a markup multiple times your base trainer salaries (your prime cost variable) such that it covers your breakeven costs. This result is your TRUE total trainer cost.

IT'S ABOUT TIME TO START THINKING ABOUT ALL YOUR STAFF TRAINERS AS A VARIABLE COST THAT YOU PAY FOR ONLY WHEN THEY ARE USED. 

Don't Just Take Our Word For It. Industry and government studies prove that outsourcing is a key strategy to help companies reduce operating costs and increase profitability. Outsourcing growth has exceeded all market expectations in the last 10 years for one reason: it pays good dividends in revenue and profit! Companies who realized the true total costs of their various business operations, outsourced non-core staff and competencies to volume staffing specialists. By not paying for more staff than they needed, outsourcing freed up financial resources and enabled managers to refocus on marketing to their clients, business development, and managing the business to make it more profitable.

Staff & Contract Instructors
Costs, Comparisons, and Considerations for Strategic Decision Making.