When you are considering the most economical way to train your staff, should you hire an outside training professional or have your management conduct in-house training? What makes the most financial sense?

Assuming your Sales Manager spends 15% of his (or her) time training your sales staff and 85% of his time managing the department and selling his own accounts.

	Your Sales Manager’s	Example	Your Situation
1	Total Annual Compensation (Salary, Benefits, Commissions, Expenses)	$100,000	$___________
2	Compensation for Training ($ 100,000 x 15%)	$15,000	$___________
3	Total Annual Sales (in the last 12 months)	$1,000,000	$___________
4	Annual Work Hours (50 hrs/wk x 48 wks/yr)	2,400 hrs	_________ hrs
5	Average Sales/Hour Rate ($ 1,000,000 / 2400 hrs)	$417/hr	$_________/hr
6	Time Spent Training (2400 hrs x 15%)	360 hrs	_________ hrs
7	Sales Lost During Training ($ 417 x 360 hrs)	$150,000	$___________
8	Use of Your Training Budget ($ 10,000 for example)	$10,000	$___________
9	Total Training Expense	$175,000	$___________
10	Trainee Sales Gained/Lost During Training	? $_______	$___________
11	Total Training Impact	+- $175,000	$___________

Does it make financial sense to expect your sales manager to conduct in-house training along with his or her other duties? Simonsen Sales & Marketing’s training is designed to save training expense while maximizing sales growth and your employees’ time to make that sales growth happen! …It’s a bargain!