Cost-benefit analysis is a great tool for any business looking to reduce training costs.
It helps you to identify the most cost-effective training options for your business.
It is especially useful for businesses that are looking to reduce their training costs while still providing quality training.
Let’s say you are a business owner looking to reduce training costs.
You have identified two training options: online training and in-person training.
You decide to use cost-benefit analysis to determine which training option is the most cost-effective.
For the online training option, you calculate the cost to be $500 and the benefits to be increased employee productivity and reduced travel costs.
For the in-person training option, you calculate the cost to be $1,000 and the benefits to be increased employee engagement and improved employee morale.
After comparing the costs and benefits of each training option, you decide that the online training option is the most cost-effective.
This is because the cost of the online training option is lower and the benefits are similar to the in-person training option.