13PG- TRAINING PLAN REPORT

Student 1

HRMN 406-6980 Training Budget: ERAC Student name here Heather Yungbluth 3/23/2014

Enterprise Rent-A-Car is in strong need for training in the areas of sales, marketing and career-planning in order to retain struggling employees and increase productivity. At this time, three employees at one Enterprise location in Easton, Maryland are directly affected by these training needs. A training budget will be enclosed based on the current training plan for these individuals.

Although it may be more cost effective to train all three employees at once, each of the employees are at a different stage of the Management Trainee program. Also, these three employees make up a total of four employees within the local office, so taking all three employees out of operations for the day would mean pulling employees from surrounding branches. Therefore, separate training will be conducted to ensure the daily operations of the office to be successful still. Training that will be conducted outside of the office due to its small size and lack of technology, will be at Marriot Suites, where most of Enterprise Rent-A-Car holds external training courses. Both lodging and traveling accommodations will be allocated to the employees on the external training days, sales and career-path training. The expenses for these training days are explained in detail below.

Sales training should be conducted both internally and externally. Each individual will meet with Training and Development Coordinator, Jeanie, who oversees training for all of Group 18 (Maryland). At this one-day training, Jeanie will conduct teaching for individuals at the same level who are struggling to produce the expected results, as a refresher course. For example, the employee that has been working at the Easton location for 5 months as a MT will meet with other struggling 4-6 month MT employees in the Maryland area Enterprises to form a larger, more cost-effective set of classes. The average amount of employees in each course is 15 participants. The format of training will include PowerPoint presentations created by the Training and Development Coordinator, role-playing, and a Sales DVD created through Enterprise with pre-printed workbooks also already established through ERAC. Again, since this requires outside training, a hotel conference room will be rented for the day. Enterprise will provide snacks and lunch for employees in training and instructors. Since the location of the hotel is a longer commute for the three employees on the Eastern Shore, a one-night stay at the Marriott as well as a rental car will be provided to these 3 employees. Internal, on-the-job training will give these employees practice of what they learned at the external training sessions, at no extra cost to the company. The branch manager will conduct this training during daily operation through feedback of each employee’s sales throughout the day.

Sales Training
Activity	Resources	Cost
Presentation Instructed by ERAC employee Jeanie	Company Computer Hotel Projector Company-Owned Presentation	$0
Interactive DVD /Workbooks	Hotel TV/DVD Player DVD/Workbook Set	$0
Role-Playing	Open Space	$0
Hotel Conference Room with Complimentary Water, Pens, & Notepads	Marriot Suites Inn Conference Room	$250
Lunch	Panera Bread	$130
Snacks	Walmart	$65
Total	$445 per session

Marketing training will be conducted outside of the branch at different accounts. This training will consist of appreciation ventures with the area manager in the local market. Showing appreciation to the accounts requires resources such as fuel for traveling, a DVD of the importance of Marketing, and gifts to accounts including breakfast, lunch, and treats. Each of the three employees will be taken at separate dates and will visit at least 4 accounts throughout the day. This will again discourage the need for additional replacement employees for the training day. The area manager will also provide lunch for the employee that day. The DVD will be watched at the branch on a computer in the back office after visits with the accounts to connect thoughts and questions as well as let the material learned sink in.

Marketing Training
Activity	Resources	Cost
Appreciation Trips to Accounts	Gas	$40
Donuts, Subs, or Cookie Trays	Dunkin Donuts Subway Panera Bread	$60
Role-Playing	Open Space	$0
DVD	ERAC DVD	$0
Lunch	Panera Bread	$35
Total	$135 per session

Career-Path Training will include employees who attend a training course where employees from different positions within ERAC will speak about their current roles within the company and their paths to success. Again, this will be structured like the external Sales Training in the hotel conference room for the day. Hotel and travel accommodations will be included for the three Eastern Shore employees for the day. Lunch and snacks will be provided by Enterprise as well as a presentation from the Training Coordinator and current ERAC employees. These employees will be speaking during normal business hours so no over-time compensation is needed.

Career Path Training
Activity	Resources	Cost
Presentation Instructed by ERAC employee Jeanie	Company Computer Hotel Projector Company-Owned Presentation	$0
Hotel Conference Room with Complimentary Water, Pens, & Notepads	Marriot Suites Inn Conference Room	$250
Current ERAC Employees Speakers	Enterprise Holdings Employees	$0
Lunch	Panera Bread	$130
Snacks	Walmart	$65
Total	$445 per session

Training programs are large investments for organizations. The expenditures positively correlate with employee retention, customer retention, sales, and overall productivity and profitability (Mahuron, 2014). Each training program has direct and indirect costs associated with the preparation, completion, and evaluation of this program. Direct costs included in the training program involve the costs of the training materials, travel and accommodations for participants, and the facility or location of training (Society for Human Resource Management, 2006). In both the sales training and the career-path training, the Eastern Shore employees will be provided transportation and a hotel stay; these would fall under the direct costs category. Indirect costs included in the training program involve the participant’s and trainer’s wages, preparation costs of training materials, and the development cost of management’s time to set up and align the training (Society for Human Resource Management, 2006). In the marketing training, the Area Manager’s time and compensation for being out of the office with the employee would be an indirect cost. The following Training Budget focuses on these individual costs.

Training Budget
Sales Training
Direct Costs
Travel & Accomadations
Hotel	$ 120
Rental	$ 80
		$ 200
Training Materials
Presentation	$ 50
DVD	$ 5
Workbooks (15)	$ 150
		$ 205
Conference Room		$ 250
Total Direct Costs			$ 655
Indirect Costs
Preparation (Creation Time)
Presentation, DVD, Workbooks		$ 500
Lunch & Snacks		$ 195
Development Costs
Trainer Compensation	$ 180
Partricipant Compensation	$ 1,500
		$ 1,680
Evaluation Costs
Periodic Reveiws		$ 50
Total Indirect Costs			$ 2,425
Total Sales Training Costs			$ 3,080
Marketing Training
Direct Costs
Travel & Accomadations
Gas	$ 40
Rental	$ 80
		$ 120
Training Materials
Presentation		$ 50
Marketing Expense
Client Give-Aways		$ 60
Total Direct Costs			$ 230
Indirect Costs
Preparation (Creation Time)
DVD		$ 100
Lunch		$ 35
Development Costs
Area Manager Compensation	$ 152
Partricipant Compensation	$ 100
		$ 252
Evaluation Costs
Periodic Reveiws		$ 50
Total Indirect Costs			$ 437
Total Marketing Training Costs			$ 667
Career-Path Training
Direct Costs
Travel & Accomadations
Hotel	$ 120
Rental	$ 80
		$ 200
Training Materials
Presentation		$ 50
Conference Room		$ 250
Total Direct Costs			$ 450
Indirect Costs
Preparation (Creation Time)
Presentation		$ 200
Lunch & Snacks		$ 195
Development Costs
Trainer Compensation	$ 180
ERAC Management Compensation (4 Guest Speakers)	$ 800
Partricipant Compensation	$ 1,500
		$ 2,480
Evaluation Costs
Periodic Reveiws		$ 50
Total Indirect Costs			$ 2,925
Total Career-Path Training Costs		$ 3,375
TOTAL TRAINING COSTS				$ 7,122

The total cost for each of the three Easton, MD training sessions that need to occur is $7,122. Although this training is anticipated for the three employees separately, each of the sales training and career-path training will include 15 total participants, equaling 45 total participants for the three different sessions of both sales training and career-path training (3 sessions * 15 participants). The total amount for training is $7,122 for each of the Easton employees, meaning the complete total training that needs to occur in order to properly training all three of these employees is $21,366. This cost includes sales training for 45 participants, marketing training to 3 participants, and career-path training for 45 participants. Since training is a major component in enhancing employee competencies, tracking the training-cost-per-employee metric helps determine the investment in training at an individual level (Society for Human Resource Management, 2006). This metric can be computed by dividing the total training cost for an organization by its headcount. Both the sales and career-path training affected 15 employees each, therefore the training-cost-per-employee for sales training is about $205 (Total Sales Training Cost/Total participants) and the training-cost-per employee for career-path training is about $225 (Total Career-Path Training Cost/ Total participants). The marketing training only affected the three local employees; therefore the training-cost-per-employee for marketing training is about $222. These figures will be most important when evaluating the training programs based on Return on Investment.

The role of employee training and development is becoming more important as companies are increasingly relying on the knowledge, skills and abilities of their human capital to drive firm performance. At Enterprise Rent-A-Car, performance is the key to growth success. In order to move up in the beginning positions all expectations need to be met in the categories of sales, marketing, and career planning. The low-performing employees at the Easton, Maryland branch will begin to gain the knowledge, skills, and abilities through the above training in order to succeed in the Enterprise Rent-A-Car rankings.

References

Mahuron, Sara. (2014). Elements of a Good Training Budget. Demand Media. Retrieved from http://smallbusiness.chron.com/elements-good-training-budget-44855.html

Society for Human Resource Management. (2006). Training Cost Per Employee. SHRM Metric of the Month. Retrieved from http://www.shrm.org/Research/Articles/Articles/Pages/MetricoftheMonthTrainingCostPerEmployee.aspx