Saving money, time, expertise
Here will be some numbers we took from our experience with Russian companies, so you might find some mentions of “rubles” and a local tax. You can apply this number to your realities as well.
Very often you can find a vacancy for a business coach with a monthly salary of 60,000 RUB (~750 USD) on Russian hiring websites. Sometimes the job description does not match this modest sum, since it often includes duties that are possible to complete if you work in a group of at least 3 persons. In this case, either part of the work will not be closed, or the quality of the future training will be affected.
Let's calculate how much it would cost to launch a training department within the company. Let’s say the average salary of the Head of the department would be around 120,000 rubles. Let's add here a T&D specialist (the average salary on a popular hiring website is 80,000 rubles) and a methodologist (60,000 rubles). Here we do not take into account fees for a producer for recording courses, a project manager, renting a studio, or preparing materials (design, proofreader).
So, in the first month, your payroll is 260,000 RUB. Let's add tax up to 43% (we're talking about Russia). In total we have:
371,000 RUB for the first month of work (plus the cost of hiring these employees). For three months, employees get acquainted with the industry. In the third month, they begin to build a training system, attracting contractors with an additional budget. Let's say you're the lucky one who has all 3 employees successfully passed a probationary period and doesn't have to lose money on rehiring.
On average, you can start training in a company from scratch in 4-6 months (if you already have recorded courses, pre-training diagnostics, IDP, etc.).
371,000 RUB x 8 (2 months to “get into the topic”: understand the company’s industry, find experts who are well versed in the topic, study the market; 6 months to build a training system) = 2,968,000 RUB. This is the minimum cost of building a training department hoping that the employees you hire will have all the skills described in the resume and will not leave in a few months.
The cost of the agency’s work, of course, will depend on your needs, and the price may vary, but if you compare cost, time, and expertise, it is often much more profitable to hire an outsourcing agency.
Also, such agencies often have discounts for external evaluations, video recording studios, and training.