How much is experience worth?

Non-experienced employees go through training programs to learn about systems, processes, and people.


Some of that training is done by themselves, thus the cost is only lower productivity (quantified at 1times the salary cost). In other cases, the training will be provided by colleagues, subordinates, peers, manager and Upper Management. To quantify the total cost of such training, we include the time cost of all employees. For example, we assume that the manager will spend 4 hours per month (including onboarding) to train the employee and that the manager's compensation is 50% higher.







1.Training Time Spent on:

Systems & Processes (Self 1X)

Clients & Products (Self 1X). Includes how to handle

internal customers and exceptions.


2. Training Time Spent with others

(including all parties, salary adjusted)

Subordinates (1.8X). What they do, how to lead them.

Peers (2X). Idem

Manager (2.5X). What the new job entails

Upper Mgmt (4X). Strategic impact of job


3. Travel costs. This includes all out-of-pocket 

expenses (airfare, hotel, mileage) to visit people and








The total average training cost, for all positions participating on the survey, was 37.2%. The drivers of cost vary by seniority. More senior positions spend more time being exposed/trained by Upper Management and less time on Systems.

How much does it cost to train.PNG