How to Conduct a Cost-Benefit Analysis

Costs

The most difficult part of conducting a cost-benefit or cost-effectiveness analysis is to determine what the costs and benefits of a training program are and to place a dollar value on them.

Valuing Costs

Once a decision is made about what to include as the costs of designing, developing, and delivering a training program, valuing those costs is relatively simple. The first step is to decide what costs to include. Several models have been developed to help trainers decide what training costs to incorporate in the analysis. Most models include:

Personnel costs

These include all salaries, consulting fees, and wages, including lost production, involved in the design, development, and delivery of a training course.

Training materials