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MYTH #2: The cost to onboard and train is wage x hours

Onboarding introduces new hires to the company, and training prepares them to perform the job.

Contact centers make significant investments in new hire training. For example, it costs our 100-seat center $35,244 in new hires’ wages to train seven people for six weeks.


Relying on wages x hours simplifies calculations but underestimates training costs. Figure 3 identifies expenses centers should use when calculating the cost of training.


FIGURE 3: TRAINING EXPENSE CATEGORIES

Cinareo uses direct and indirect expenses from Box 2 below to estimate training costs.


The contact center spends $190.25 per classroom hour to train seven people; $45,660 for a six-week class ($6,523 per person).


Our analysis reveals that hidden expenses add 30% to the cost of training over wage-only estimates [($45,660 – $35,244) / $35,244)].


Contact centers must incorporate direct and indirect expenses to measure the true cost of training. By including direct and indirect expenditures, centers will fully understand their training costs.



Want to learn more? Check out these other myths:


Stay tuned for other myths that will be busted!



**Excerpt from The Hard and Hidden Costs of Attrition by Mark Alpern and Brent Holland published in December 2022 in the Contact Center Pipeline magazine


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Find out how Cinareo can guide your decision-making for hiring ahead of attrition in order to maximize your profitability and boosting employee performance and satisfaction.



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