ATEN AI & DATA DRIVEN TRAINING ROI
YEAR OVER YEAR & 5 YEAR ROI
REDUCED TRAINING COSTS(%) &
SAVINGS FROM REDUCED ATTRITION(%)
INCREASED REVENUES &
INCREASED PRODUCTIVITY
5 YR CUMULATIVE ROI
$3,203,621
PER YEAR AVERAGE ROI
$640,724
5 YR ROI %
$641%
5 YR CUMULATIVE INVESTMENT
$500,000
ANNUAL INVESTMENT
$100,000
ANNUAL ROI
$641%
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Investment New Users (calculated Basis attrition rate and expected growth)

200

198

206

213

231

1048

Your cost $

100,000

$

100,000

$

100,000

$

100,000

$

100,000

$

500,000

Benefits Reduced training cost $

11,950

50%

$

35,635

65%

$

44,253

75%

$

45,814

80%

$

49,766

80%

$

187,418

Reduced Attrition cost $

11,408

5%

$

16,941

8%

$

23,466

10%

$

24,294

10%

$

26,390

10%

$

187,418

Increased revenue (Due to reduction in training period) $

316,000

50%

$

312,840

60%

$

325,006

65%

$

336,477

70%

$

365,498

75%

$

1,655,821

Increased productivity $

140,000

5%

$

207,900

8%

$

287,980

10%

$

298,144

10%

$

323,859

10%

$

1,257,883

Your Benefits $

479,358

$

573,316

$

680,705

$

704,729

$

765,513

$

3,203,621

COST OF “NOT” AUTOMATING TRAINING

I had been in discussions with the Business Head for one of our older Customers. We were brainstorming to create a business case within their Organization to internally showcase the efficacy of moving away from archaic instructor led training to a NextGen, Automated, Artificial Intelligence driven , Analytical & Personalized Learning Platform.

Organization, & our collaborative BPR approach to this viz. we decided that we needed to take this a step further and try and put some numbers to each of these to calculate a realistic Return on Investment ( ROI ) Model . So there I was poking away at my Mac on a beautiful Fall Friday evening at 9 pm ! That was when my model totaled up the calculations and I literally fell off my chair ! I swear I should have done this 10 years back !
ROI - Where, Why & How ?

While we had been waxing eloquent about the ROI to our customers for ages and in sweeping statements, this was the first time we really broke down at least the tangible benefits to put a monetary value to each .

The numbers were mind blowing ! Let’s look at a hypothetical example : For Company X with

  • Revenues of $1 Billion, and
  • an average employee cost of 35% ,
  • with around 5000 employees, spread globally
  • Annual attrition rate of 11%
  • Annual new hire rate of 12%

ROI USD/Employee Potential for your division
Potential Savings $3,446 $6,175,950
Potential Increased Revenue $53,117 $59,505,059
Total Potential Savings + Increased Revenue / year $56,563 $65,681,009

That is when it really struck me ! Its not just a savings or benefit . It is a COST , or A LOSS ! - “ The Cost of delayed Innovation / Automation of Training ” ! For every minute, every hour, every month you wait, to make this change to such a research proven , way more effective & efficient, AI data & analytics driven Next-Gen Personalized Learning Platform, you are in effect losing money - and significantly at that ! What is your loss or Cost of delayed Innovation / Automation of Training ? Calculate yours & feel free to play around with the model available.

Reduced Training Savings ( 35 to 50%)
Average # % reduction Cost Savings/Employee assuming 10 per batch Cost Savings for new employees assuming 35% new hires
Effectiveness impact
Trainer Costs $198,720 50% $9,936 $993,600
Admin/OH Costs @ 25% of Trainer costs $49,680 $2,484 $248,400
Cost to retrain employee at OJT level assuming 20% need retraining $497 $49,680
Cost to review & monitor during weeks 3 OJT $49,680 80% $2,484 $248,400
Total Savings Year 1 $298,080 $15,401 $1,540,080
Total Savings Year 2 $1,540,080
Total Savings Year 3 $1,540,080
Total Savings Year 4 $1,540,080
Total Savings Year 5 $1,540,080
Right Hire - Attrition Cost Savings ( 35 to 50%)
% Reduction Replacement Cost / Employee Annual attrition rate reduction by 50% USD
Employee replacement costs @20% Cost to Company(CTC) 25% $73,600 5% $78,826
Total Savings year1 5% $78,826
Total Savings year2 8% $78,826
Total Savings year3 10% $78,826
Total Savings year4 10% $78,826
Total Savings year5 10% $78,826
Reduced Ramp up Savings
Added Productive Weeks # % reduction Increased billing per employee Assuming 35% new hires
Increased Revenue by Ramp up reduction 6 50% $2,400 $336,000
Reduced ramp up Total Year 1 $2,400 $336,000
Reduced ramp up Total Year 2 60% $2,400 $336,000
Reduced ramp up Total Year 3 65% $2,400 $336,000
Reduced ramp up Total Year 4 70% $2,400 $336,000
Reduced ramp up Total Year 5 75% $2,400 $336,000
Reduced Error Savings
% reduction Increased billing per employee Increased USD Billing for Company
Increased Revenue by Ramp up reduction 5% $1,000 $400,000
Total $1,000 $400,000
Increased Productivity Savings ( Doing it faster, with lesser variability )
% reduction Increased billing per employee Increased USD Billing for Company
Increased Productivity Savings 5% $1,000 $400,000
Total Productivity Savings Year 1 5% $1,000 $400,000
Total Productivity Savings Year 2 8% $1,000 $400,000
Total Productivity Savings Year 3 10% $1,000 $400,000
Total Productivity Savings Year 4 10% $1,000 $400,000
Total Productivity Savings Year 5 10% $1,000 $400,000
Increased gains in Biz owing to increased Customer Confidence
% reduction Increased billing per employee Increased USD Billing for Company
Increase in Biz owing to increased Customer Confidence 5% $1,000 $400,000
Total $1,000 $400,000