Preliminary agreement. Whether it is a current staff member or a potential recruitment contract, an agreement on the reimbursement of training should be reached prior to the launch of the employee`s program. You can inform the employee that the agreement establishes a contract and encourage them to have the document checked by their own advisor before signing. An increase in wear and tear increases costs for the employer. One study estimates that 213% of the annual salary is for jobs requiring a higher level of education and training.  This means that an employee earning $80,000 a year could cost the company between $40,000 and $170,400 in revenue costs. You may have an ambitious collaborator with exceptional talents who will ask you to fund all or part of an expensive educational program, such as. B an MBA or a postgraduate certificate. It`s great, and you may want to support it, but in a way, you also need to protect the interests of your business.
Implementation of such an agreement ensures that the employee agrees to remain with your company for a predetermined period after the completion of the training and must reimburse a portion of the training costs if it ends earlier. In an agreement on the reimbursement of training, all parties involved agree in writing of the entire budget approved for the course and the name of the approved course. To encourage employees to stay in the business, reimbursement fees are generally slippery. As a result, amortization costs decrease as an employee remains in the company after the end of the course. There are seatholders in the agreement who request the entry of important information, including the name of the person overseeing the refunds, the minimum bill required to continue paying course fees and the duration of the course. Staff training is an expensive offer. A 2016 training evaluation study showed that for large companies (10,000 employees), annual training budgets are approximately $13 million. Small employers (1,000 euros) spend about $3 million and small businesses spend about $290,000. And that doesn`t take into account the hidden cost of education: the time you take away from dene work, equipment and more.
Have you been approached by a strong collaborator to fund an educational program that exceeds the training budget? Would the knowledge acquired benefit current and future business projects? What are you doing? Mr. Sanders argued that the training reimbursement scheme was not applicable for a variety of reasons, but mainly because it was unacceptable and contrary to public policy.