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I’m not sure I understand your point. Let’s imagine that I work a job for three years, and a company spends $30,000 training me over that time period, when I t
by FakeComments 7y ago
I’m not sure I understand your point.
Let’s imagine that I work a job for three years, and a company spends $30,000 training me over that time period, when I then leave because that training helped me reach a better career position.
If they hadn’t paid for that benefit, I would have left after only two years — because the need to transfer for career advancement would happen sooner. This would save them $20,000-30,000 depending on how you count.
So what’s the net difference?
In scenario 1, they received a ROI of 1 year of improved labor, and 1 year of doubly improved labor. Additionally, the fixed costs of hiring are amortized over three years instead of two, and so decrease by 33%.
So for $30,000 they decreased my hiring costs by 33% and received two years of increased quality labor — say 5-10% productivity. Hiring an engineer is 25-50% of their yearly salary, so they’re saving 8-15% of my salary over three years. The productivity of an engineer is going to be like twice their salary, just to pay overhead and profit. So we’re looking at a boost of 10-20% my salary in their revenues.
So they’re looking at ~15-25% of my salary as the return for spending $10k/year. Naively, it seems like that pays off in many cases: it just requires you operate in a trust based manner.
- icebraining 7y ago> If they hadn’t paid for that benefit, I would have left after only two years — because the need to transfer for career advancement would happen sooner. That depends on whether employees will switch just to get training, and not just for a bigger salary. If not, then training you will just increase your market value, making you more likely to switch.