Lifelong Learning Programme

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Table of Contents
4.1 Introduction
4.1.4 Evaluation of the cost-benefit ratio

In a previous paragraph we had an idea of ??what the benefits could be for a company. The costs can be summarized as follows. Training costs are attributed to the company, for example on the safety and cost of the company tutor or the time that the company tutor dedicates to the student. The costs of transporting students from the school to the company, the costs for the INAIL insurance coverage and those relating to the policy for third-party liability that competes with the school are not the responsibility of the company.

The benefits deriving from the training activity can usually be identified and evaluated from a monetary point of view and in this way can be directly subtracted from the gross costs to determine the net cost of the training. . There is also the productive contribution of the newly placed. Replacement costs can be avoided when vacancies present within the company cannot be adequately covered, the company must incur high costs in terms of time spent identifying and selecting the appropriate figures. This risk can be reduced if the company employs interns who have followed a training course, which, most likely, are able to better meet the needs of the company and possess the appropriate requirements to occupy a certain position. In summary, from the analysis conducted it emerges that the main benefits that companies obtain by investing in training and apprenticeship programs for new hires concern the possibility of having young people with specific qualities required internally by the company and practical skills and always up to date, as well as young people able to be more productive and more involved. At the same time the company is able to reduce turnover, recruitment costs and improve its image by investing in training courses aimed at the growth of young people.

In the event that the company intends to take on, the benefit is even greater as in the calculation of the cost / benefit ratio, it must be taken into account however that the benefits are sometimes not immediately perceivable as they are reflected in the long term: as an example , the potential benefit of the trained employee may occur years after the company has invested in the training activity, and only if the student does not abandon the company for another company. Furthermore, it must be kept in mind that some benefits are easily quantifiable (costs saved for recruitment), others are difficult to quantify (for example a reduction in the risk of turnover). Nevertheless, all the benefits must be taken into consideration, even if not directly quantifiable in the short term, for a correct evaluation. As previously mentioned for a company, the main benefit, deriving from the investment in the training activity, is the contribution that the trainee can make to the level of productivity of the company itself. However, the advantage is sometimes not evident in the short term, that is, in the same period in which the company bears the costs of training, it is necessary to take into consideration the long term and future performances.

A company that hires an external subject and must train it so that it acquires specific skills must bear a high cost in terms of lost productivity and at the same time a cost linked to the salary that it must pay to the hired party. Conversely, the cost of an apprentice who has acquired specific skills during the apprenticeship period is much lower for the company. This distinction is relevant in companies where specific skills acquired within the company are important and, therefore, it is essential that the companies that have invested in the training activity, so that apprentices acquire specific skills, manage to preserve the apprentices trained after the completion of their apprenticeship. Businesses know that offering training opportunities is also a way to keep their staff within them. In some companies, groups composed of apprentices register the highest levels of satisfaction among company employees.


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Checklists to be proposed to SMEs that are evaluating to host a foreign learner

 

This project has been funded with support from the European Commission. This web site reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

The SWOT - Skills for Work Opportunities in Eno-gastronomy and Tourism project © 2018