Module 3/6 25 min
Count all costs, monetize benefits
Step 1 / 3·The true cost of a program
0/3 steps done
Learning objectives — after this module you will:
- Compute fully-loaded cost (don't forget learner time cost)
- Monetize 4 types of benefit
- Complete a full ROI calculation
Learn ~7 min
The true cost of a program
Don't miss the hidden cost items.
Fully-loaded cost includes
- Content design & development (internal + outsourced)
- Delivery: instructors, venue, travel, platform
- LEARNER TIME COST: learning-hour wages + (for production/sales) shift-replacement cost or lost output — the biggest and most often 'forgotten' item
- Program management and measurement cost
4 routes to monetize benefits
| Benefit type | How to monetize |
|---|---|
| Productivity increase | Extra output/revenue × profit margin |
| Quality improvement | Error costs saved: scrap, rework, complaints, recalls |
| Time saved | Hours saved × hourly labor cost (only count if those hours go to valuable work) |
| Retention | People retained × replacement cost (usually 50–150% of annual salary by role) |
Key takeaway: Learner time cost is the most forgotten item; monetize benefits via productivity, quality, time, retention.