How To Calculate Onboarding Expenses For Sales Enablement
This is where companies often opt for sales enablement onboarding, in which new sales reps are given the tools and resources they need to be successful as quickly as possible. Enablement often includes product training, as well as sales methodology and best practices. Some also include customer engagement training and social selling training.
With sales enablement comes a number of expenses, though—and it’s best to be aware of these as you craft a reasonable onboarding budget.
Next up, we’ve got the costs that tend to fluctuate as your needs change and evolve. They aren’t as predictable, but you can still get a general idea of what to expect. Some common variable costs for enablement include:
Travel And Accommodations
If your team needs to travel for training, be sure to factor in those costs. And if employees need to stay overnight, make sure you account for that as well.
Professional Development Courses
In order for employees to be effective in their roles, they often need to take courses or participate in other professional development activities. If this is the case, make sure you include those costs as well.
Creating new content (such as training materials and videos) can be a costly endeavor. Make sure you budget for it.
From eWyse Experience
With quality eLearning, you can decrease both fixed and variable costs. Expertly made eLearning courses can significantly reduce the amount of time that passes from the employee’s first day at the job until they reach the point when they earn enough to cover their own salaries.
Additionally, good eLearning can save you many travel and accommodation costs. If you still think that going on-site is mandatory, think twice; maybe you can save a lot of money using VR technology.
Unexpected costs pop up all the time in any business, and especially in one as fluid as sales. So, it’s important to account for potential risks that could impact your enablement budget.
Unplanned Employee Turnover
If you lose employees in the middle of your onboarding process, you’ll need to replace them and account for the additional costs.
Rising Tool And Resource Costs
As technology advances and new tools become available, the costs of those tools can rise. Make sure you’re prepared for that possibility.
You may need to adapt your enablement strategy on the fly if the needs of your customers change. This can result in additional costs.
From eWyse Experience
The fluctuation of workers can happen due to various crises. In the latest coronavirus crisis, some companies were forced to let go of a significant number of their employees. However, with the end of the lockdown, many found themselves with a need to onboard many new workers – based in different parts of the world and with various levels of knowledge, all in a short time. This is where a quality eLearning onboarding program came in as a solution that efficiently dealt with all those problems.
Putting It All Together: Expected ROI
Now that you know what to expect in terms of expenses, you’re in a much better position to calculate your expected ROI.
To do this, simply divide the total cost of enablement by the number of sales reps who will be reaching their quota within 6 months of completing enablement. This will give you an estimate of how much each rep is costing you.
Then, subtract that number from the average lifetime value of a customer. This will give you an estimate of how much each rep is bringing in for your company. Finally, divide the difference by the total cost of enablement to get your estimated ROI.
Of course, this requires a certain amount of reliance on historical data and assumptions. But it can give you a general idea of how effective your enablement strategy is.
Download the eBook Get Fully Ramped In Record Time: Your Guide To Boost Employee Onboarding ROI to onboard with ease and stretch your L&D resources. You’ll discover how to not only create a budget but stick to it by leveraging the right outsourcing partner and proven strategies.