The cost of training a new employee

Key takeaways

The cost of training a new employee is the output lost while they learn, plus the time of whoever trains them, plus the cost of early mistakes. For a £28,000 admin hire reaching full speed in 8 weeks, a realistic figure is about £4,000. It recurs with each new starter.

• £4,000 is a realistic training cost for a £28,000 admin hire.
• 8 weeks to full productivity is a common planning figure for admin roles.
• Trainer time often exceeds the cost of any course.
• A written process cuts training time for any new starter.

What does training a new employee cost?

Training cost is the value of output lost between a new starter's first day and full productivity, plus the time others spend teaching them and fixing their early errors. External courses are usually the smallest part. The largest part is the gap between what you pay and what you get in the first weeks.

• In-house vs outsourcing: which model is more cost-effective?

How do you calculate training cost?

Estimate how many weeks it takes to reach full speed and the average productivity over that time. Multiply the lost share by the weekly employment cost, then add trainer hours and any courses.

• Weeks to full productivity.
• Average productivity over that period (for example 50%).
• Lost output: weeks x weekly cost x lost share.
• Trainer time: hours x trainer's loaded rate.
• Rework: time spent correcting early mistakes.

What does a worked example look like?

A £28,000 hire costs about £32,103 a year, roughly £692 per worked week. If they average 50% productivity over 8 weeks, lost output is about £2,770. Add 30 hours of a colleague's time at £40 an hour, £1,200, and the training cost is about £4,000 before any course fees or mistakes.

• What it costs to recruit an employee in the UK

How do you cut training cost?

Write the process down. A short procedure for the ten most common tasks, with screenshots and examples, halves the questions a new starter asks and lets them work independently sooner. The same document makes outsourcing easier if you choose that route later.

• Document your processes before you outsource

How does outsourcing change training cost?

With a managed provider, you invest once in a handover: documenting the process and answering questions during the first weeks. After that, the provider trains its own replacements and cover staff from the documentation and its team lead. You do not pay the training cost again each time someone leaves.

• A BPO transition plan for the first 90 days
• BPO Solutions for UK businesses

Is training cost ever worth paying in-house?

Yes, for roles where knowledge compounds over years, such as account management or specialist work. There, training is an investment that pays back through tenure. For high-turnover or seasonal roles, the cost recurs too often to pay back.

• The cost of staff turnover for UK small businesses

What should an onboarding plan include?

A simple onboarding plan cuts time to productivity for any new starter. Keep it to one page for routine roles, and review it after each hire so it improves over time.

• Week 1: systems access, the ten most common tasks, a named buddy.
• Weeks 2 to 4: supervised work with daily feedback.
• Weeks 5 to 8: independent work with weekly review.
• A written definition of full productivity for the role.

• Outsourced team productivity: measure it like for like

What does this look like in practice?

A pattern we see in UK e-commerce brands: each new customer service starter takes weeks to learn the returns rules, courier portals and product range, and the senior agent loses part of each day to questions. A written playbook cuts that, and moving routine tickets to a managed team removes most of it.

• See client work

Training cost checklist

Use these steps for any new starter.

• Agree what full productivity means for the role.
• Estimate weeks to reach it and average output meanwhile.
• Log trainer hours for the first month.
• Write down the ten most common tasks.
• Review training time after each new starter.

Next step

Send us the role and how long new starters take to settle. We will cost training alongside the other in-house costs and compare with a managed team in a 30-minute call.