Employee Training Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Published Date: Sep, 2023
- Base Year for Estimate: 2022
- Report ID: GVR-P-10541
- Format: Electronic (PDF)
- Historical Data: 2020 - 2021
- Number of Pages: 60
The pricing and cost analysis helps in deriving and forecasting the actual cost of products or services over the forecast period. It considers all the cost components and provides a competitive edge during supplier negotiations. Moreover, the outcome helps procurement leaders understand detailed and fact-based cost drivers for the category.
In this employee training services intelligence report, we have estimated the price of the key cost components. Employee training services involve various cost components, including trainers salary, training material cost, IT costs, and general and administration costs. Trainers salary account for a major part of the overall costs, followed by IT costs, training material costs, and administrative costs. Optimizing these components ensures effective training outcomes while managing costs efficiently. Off-site locations may also result in travel and accommodation costs.
The price of employee training services varies depending on the type of training, delivery format, number of participants, duration, expertise of trainers, customization, technology requirements, location, materials and resources, and evaluation and feedback. The price of employee training is significantly influenced by various factors, including the type of training, delivery format, number of participants, duration of the training program, expertise of trainers, customization, technology requirements, location, and evaluation and feedback mechanisms. Onboarding training for new employees typically costs between USD 500 and 1,000 per employee, while specialized skills training prices can range anywhere from USD 1,000 to 5,000 per employee. The duration of the training program also affects the prices, as longer programs require more resources and time to develop and deliver. Experienced trainers charge higher fees than less experienced ones, while customized training programs are typically more expensive than off-the-shelf programs. Technology requirements, such as simulations or virtual reality, also affect the price, with programs using technology being more expensive than those without. The location also plays a role in the cost, with high-cost areas typically being more expensive than lower-cost areas. Finally, evaluation and feedback mechanisms can increase the cost of a training program, as they require resources such as time and money.
Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.
Rate benchmarking is a critical process for businesses to ensure they are getting a fair price for their employee training services. The employee training services category is highly competitive, and prices can vary significantly depending on a number of factors. For example,
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Skillsoft and LinkedIn Learning are prominent players in the field of employee training services. Skillsoft offers a range of training solutions, with prices varying based on the specific programs required. Their courses cover diverse topics and begin at competitive rates. For instance, their leadership development training starts at USD 2,000 per module and USD 35 per month. On the other hand, LinkedIn Learning provides a comprehensive platform for professional development. Its plans encompass a wide array of courses and begin at USD 29.99 per month and USD 1,900 per module making it an accessible option for individuals and businesses seeking to enhance their skill sets.
By benchmarking rates, businesses can gain valuable insights into prevailing market trends, competitive pricing strategies, and areas where potential cost optimizations can be made. This information can be used to make more informed decisions about employee training services and to ensure that businesses are getting the best possible value for their money.
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Content development cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.
According to our research, training specialist at Skillsoft receive an 18% higher base salary compared to the salary received by training specialist working in companies such as LinkedIn Learning and GP Strategies. However, the year-on-year increment rate in all these companies majorly depends on experience, location and performance.
Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the employee training services over the last three years:
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In March, 2023 A learning and talent-development company named Hemsley Fraser has announced the acquisition of STS, a project management training company, and MindOnSite (MOS), a maker of online training systems. With the addition of new technologies like gamification, learning management systems (LMS), smart learning portals, and project management simulation tools, the purchases will improve Hemsley Fraser's product portfolio.
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In February, 2023 GSoft, a Montreal-based software company, has acquired Didacte, a learning management system (LMS) platform provider. GSoft offers employee experience solutions like ShareGate, Officevibe, and Softstart, while Didacte provides a web-based LMS platform for training courses.
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In March 2021, John Wiley and Sons Inc, a global leader in research and education, partnered with NUS Advanced Computing, a leading provider of executive education in Singapore, to launch a global certification program aimed at bridging the technology skills gap. The program offers a series of professional short courses in in-demand technology skills, such as data analytics, design thinking, and user experience. The courses are both instructor-led and self-paced which can be completed in two to three days. The program is open to learners from all over the world and is designed to help them upskill and reskill for the digital economy.
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Add-on Services
Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Rate Benchmarking
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Salary Benchmarking
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
Supplier Newsletter
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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