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The Unbelievable $300 Training that Gives $1.7 million profit in a year

everyone knows training pays, but is the return really infinite? I design this '4-Ways Training Leverage Chart' to illustrate how training pays:

(the highlighted lines are the areas that training works on)
No. of hours work
        x
Output per hour
        =
Output
        x
Quality of output
        x
Value Add
       =
Employee Value

 Now let's put in some numbers:
No. of hours work is 40
x Output per hour is 100
giving me output of 4,000 units
If the quality of each output is 80% and the value add is $10, the employee value is simply 4,000 x 80% x $10 = $32,000
Suppossing the training increases this employee's productivity by 10%, all the highlighted numbers above will increase by 10%:
No. of hours work              44
x                                         x
Output per hour                110
=                                        =
Output                             4,840
x                                         x
Quality of output               88%
x                                         x  
Value add                         $11
=                                        =
Employee value               $46,851
As can be seen, there is a 46% increase in employee value if the training merely increases each area by 10%
What happens if the training increases each area by 20%?  The result will be:
No. of hours work              48
x                                          x
Output per hour               120
=                                         =
Output                            5,760
x                                          x
Quality of output             96%
x                                          x
Value add                         $12
=                                         =
Employee value            $66,355
There is an increase of employee value by 107%, i.e. more than double. Note that the Employee Value increases by $34,355. If your training costs you $300, your Return on Training is $34,355/$300, giving you 114%. Isn't this return huge? 

 But bear in mind that we are only talking about a week. If there are 49 weeks in a year, your return in a year is $34,355 x 49 = $1,6833,395.  Your Return on Investment is $1,683,395/$300, giving you 561,113%. Isn't this return close to infinite? 

 Written by Andy Ng, Chief Trainer Coach at www.asiatrainers.com.  Andy specialises in success-basis traning in the areas of sales, customer servie and leadeship. Contact him at 65-8201 4347 or email to andy@asiacoachingtraining.com now! 
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