It’s that time again: budget season. Which means it’s time to do your least favorite thing: justify your safety budget to your boss.
It’s not that your boss doesn’t endorse security. It’s just that your boss doesn’t want security to cost that much. And it’s your job to show your boss why it’s worth the cost.
What does a safety training cost per employee? And how do you justify the costs to your boss? Here’s what EHS teams should know.
What does the training cost per employee?
The short answer: it depends.
According to Training Magazine’s 2020 Industry Report, the average company will spend $ 1,111 per employee on training in 2020, down $ 175 from 2019. In some ways, this can be achieved by moving to remote and online Explain work.
However, the numbers become more nuanced as you break them down.
Small businesses (100 to 999 employees) even increased their training expenses from $ 1,511 in 2019 to $ 1,678 in 2020. Medium-sized businesses (1,000 to 9,999 employees) reduced their training expenses by 30%, from $ 829 in 2019 to $ 581 in Year 2020. Large organizations (10,000+ employees) reduced their training costs by 40% from $ 1,544 in 2019 to $ 924 in 2020.
The decline is largely due to 2020 – layoffs and vacations meant medium and large businesses had to train fewer staff, which was offset by higher spending on external products to adapt to the remote working era. Keep in mind that medium and large companies invest between 2% and 5% of their salary budget back into training.
Small businesses can’t afford this benefit, but they still spent the most on training per employee. This is likely because small businesses need to get the most out of the people they can afford.
What does a safety training cost per employee?
What about the cost of security training? Again, it depends.
A Safety + Health survey of training spending among magazine subscribers found that 24% of respondents spend less than $ 5,000 on overall safety spending, 21% between $ 10,000 and $ 24,000, and 20% between $ 5,000 and $ 10,000 Dollar.
On average, 44% of respondents spent less than $ 200 per employee on safety training, 26% spent $ 200 to $ 499 per employee, and 12% spent $ 500 to $ 999. If you consider that the majority of the respondents count as small businesses (the largest group of respondents even had 100 to 299 employees), this gives an interesting picture. Small businesses seem to be spending more per employee despite having a tighter budget.
Why security is worth every penny
This brings us back to the central question: How do you justify the costs of a safety training to your boss?
For one thing, look at the numbers. A single fatal injury can cost as much as $ 3 million on the low end, adding up to direct and indirect costs. But non-fatal injuries are more common than fatal ones, and workplaces spend more than $ 1 billion a week on non-fatal injuries.
Second, consider the hidden cost of non-security. Low morale. Increased sick time. Lower productivity. Bad employee loyalty.
In short, a lack of security is a burden for your company in every way. Investing in security will help you avoid these costs and invest more money in your profits in the future.
Get safety training you can trust
What does a safety training cost per employee? In short, it’s not cheap, but it’s worth it. Especially when you have a strong safety training program.
Our safety training software was developed by safety professionals for safety professionals. We make it easy for you to deliver critical training programs when you need them most, track employee progress, and test retention. So when you’re ready for training you can count on for ROI, get in touch to see how our software can improve your safety training.