© Nucleus Group. This is Confidential & restricted information, and distribution outside your organization is prohibited

Why Should You get Training from a Great Project

Management Trainer

Introduction Note While it is clear to many decision makers that project management training to their project

managers and key managers will significantly improve their performance, there is a certain degree of

lack of awareness of the “True Costs” involved in training your associates and how to make a

judicious choice of selecting a “Training Provider”. This short note is prepared to help you

understand this important aspect. Please keep in mind that while we provide training services

globally through our channel partners, this note is mainly prepared from the “India” context (and all

numbers quoted are in rupees unless indicated otherwise).

Resource Expenses (Monthly) This note is meant to help you realize the true costs involved in training a group of your associates as

a part of “Corporate Training Programme” at your own work location. The usually number of people

in a corporate training usually ranges from 8 to 20. Assuming a batch size of 10 members in a

training programme spread over four days, the following chart is intended to show you the split up

of the cost of training programme.

Monthly Working Days An average month has 30 days and of which 8 are weekend days. In addition, leaves and other

miscellaneous leaves are provided. The split of these details are provided below.

1 Overheads usually include the cost of office maintenance, rents, interest payments, security, administrative

expenses, repairs, telephone bills, travel expenses, utilities, insurance, employee welfare expenses etc.

Total monthly salary for a batch of 10 members

(Assuming a monthly salary of 70,000 per associate) 700,000

Overhead Monthly Expenses1

(Usually overheads are 2-3 times of direct salary) 1,400,000

The total cost of the above two line items (Per month) 2,100,000

Number of working days in a month 30

© Nucleus Group. This is Confidential & restricted information, and distribution outside your organization is prohibited

Internal Costs involved in Training An average month has 30 days and of which 8 are weekends. In addition, leaves and other

miscellaneous leaves are provided. The split of these details are provided below.

Summary The external costs of training are usually less than 20% of the internal costs of training and are

reasonably insignificant in comparison to the complete cost of training and hence it is imperative

that every organization choose the BEST possible trainer and training organization to conduct their

trainings considering the enormous internal costs already involved in such a programme.

Number of days lost due to weekends (Per Month) 8

Number of days lost due to paid leave (Per Month) 2.5

Number of days lost due to Holidays (Per Month) 1.5

Number of Actual working Days (Per Month) 18

The total resource cost of 10 members (Per month) 2,100,000

Number of Actual working Days (Per Month) 18

Cost of 10 members per day 1,17,000

Internal cost of 10 members for 4 days 4,66,000