I read a whitepaper recently by The Training Associates comparing the cost of staff trainers to contract trainers. Because in the NCM Institute Manager Training Survey several respondents cited their use of staff trainers as to why they do not use outside training providers, I was eager to read what the paper would reveal. If your dealership uses staff trainers, or you are thinking about bringing on staff trainers, read on for some interesting insights that may have you thinking twice.

First, the white paper, “Staff & Contract Instructors: Costs, Comparisons, and Considera...,” is updated frequently and used “by many organizations as a tool for assessing their instructor (aka trainer) acquisition strategy – with an eye toward reducing training-related costs and risk.”

Second, the paper reminds the reader that total staff instructor’s salary must include all forms of monetary compensation, including direct and indirect overhead costs and that, as a percent of salary, total overhead costs range from 40 to 150 percent. In their example, the total cost for a $70,000 staff trainer can range from $105,000 to $175,000.

Then there is the discussion of low staff trainer utilization rates, with realistic utilization of the trainer at about 60%, but while interesting, this is not the eye opener. No, what is most revealing is the side-by-side “Factors & Considerations” table that illustrates a near hands-down recommendation for contract instructors over staff instructors. In the few areas where staff instructors have the apparent advantage (no cancellation charges; immediate availability; total company control; loyalty and commitment to the company), the contract trainers trump the in-house trainers hands-down in cost and profitability, broad training expertise, and no employee liabilities and risks.

So the next time you think you could do your training better or cheaper yourself, think again. The NCM Institute is a proven training provider with hundreds of client testimonials to verify our credentials and an annual training subscription with an ROI that can’t be beat! Give us a call when you’re ready to talk about all your training needs…on-site, regional, online or at our training headquarters.