Salaries of the employees
From the employee survey, the information regarding the formal, as well as, the informal training was collected, such as, the wages of employees, and hours spent. Estimates of the wages and salary costs, by which, employees were paid during the training, were constructed with the usage of the abovementioned-collected information. An important indirect cost to the employers was represented by the information that was collected regarding the wages and salaries of the employees.
The salary and wage opportunity costs of both informal and formal training were added to the data by the September 95, to obtain the foregoing kinds of information. The basic information that can be provided by the training expenditures was added in this regard. While no definitive answer to the question regarding the cost of training was provided by the SEPT95, a significant improvement in many respects was represented by the survey. Data was collected regarding the intensity and incidence of employee training from organizations which have 50 or more employees.
Moreover, data regarding the total expenditure on employee training was collected only from those companies which had 50 or more employees. The SEPT95 obtained different findings regarding the incidence and intensity of employer-related training with the help of fifty or more employees. These findings from the SEPT95 have been showed in the Table 1. In the last twelve months, employees were trained formally by nearly ninety-three percent of such establishments. On the employee side, it was reported that some formal training was received by approximately seventy percent of the employees.
Furthermore, informal training was received by almost ninety-six percent of the employees during their working hours. An average of about eleven hours of formal training was reported during the survey regarding the intensity of training, which included the spending of hours in training. During the months from May to October 1995, the abovementioned hours per employee was spent by the employers. Over the six-month period, an estimated of thirteen hours were spent by the employees in formal training. The results were significant.
However, the informal training was considered the more preferable way of providing the training to the employees, in order to improve their job-related skills. On average, informal training took thirty-one hours per employee. Thus, it was indicated that informal instruction was used to deliver almost seventy percent of the training during the abovementioned months from May to October 1995. Calculations and estimates collected from the employer’s survey on some selected direct costs of training have provided in the first 4 rows of Table 2.
For this category, expenditures per employee have been placed in the first column. The total dollar amount spent during the year 1994 has been shown in the second column. The range of expenditure levels has been represented in the third column. During the year 1994, an average of $139 per employee was spent by establishments with 50 or more employees on the wages and salaries. In-house trainers were paid by these salaries and wages, which included both, full-time, as well as, the part-time trainers. Outside trainers and training companies were paid by an average of $98 per employee.
However, tuition reimbursement was paid with $51 per employee during the training. In addition, outside training funds were paid with a smaller amount of $12 per employee. $7. 7 billion were spent on the wages and salaries of in-house trainers by establishments with 50 or more employees. However, outside were paid by $5. 5 billion during the year 1994. In this regard, $2. 8 billion was the total amount that was spent on the tuition reimbursement, while unions and trade associations sponsored training, which cost $0. 6 billion.
A very large amount on indirect salary and wage costs of training was spent by the various employers, albeit, it was observed in the expenditures that were related to the direct costs of the training. During the months of May to October 1995, wages salaries, which were paid to training workers, were amounted to be approximately $647 per employee. However, informal training took about sixty-five percent of the abovementioned $647 per employee. Over the May to October 1995, period, indirect wage and salary costs were $37 billion. Formal training used $13 billion, and informal training was received for $24 billion.