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11/12/2017

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Learning and development practitioner rates
 
This article is not intended to prescribe a rate a practitioner should charge nor to suggest the value a staff development programme could yield. That said; a quick review of how a practitioner might calculate their charges will be valuable for a commissioning manager.

On the assumption that a practitioner is going to generate their income from fee-earning days delivering training, rather than selling a training-related product, the calculation to determine the rate a practitioner should charge is quite simple. The rate charged is equal to the personal financial requirement plus the business financial requirement divided by the number of fee earning days.

To put this as a formula:
    CRT = (DDI + RPE) + (RBE + PFT) / CHD
      CRT: Chargeable rate
      DDI: Desired personal disposable income (holidays, leisure, gifts, etc)
      RPE: Required personal committed expenditure (mortgage, food, bills, etc)
      RBE: Required business expenditure (office, consumables, transport, marketing etc)
      PFT: Profit (the magic reward that a practitioner will get over and above what they need to earn)
      CHD: Number of Chargeable days


As a full time employee, a commissioning manager will work around 250 days per year. An equivalent rate of £150 per day for every day worked will provide a reasonable income. The same cannot be said for a freelance practitioner. The main difference between an employed staff member and an outsourced practitioner is the number of chargeable days.

An Independent Contractor will do well if they secure 100 fee earning days per year. An Associate may be out and about earning for up to 175. Given that the practitioner is likely to be an expert and of comparable capability and worth too many a commissioning manager, a direct rate of less than £600 per day (2013) for an Independent Contractor or £350 per day for an Associate will be compromising that practitionerís business model.

Jobbing and Hobby trainers of course, who do not operate the above business model and can readily charge rates that undercut Associate, Super Associate and Independent Contractors.

It has been said that as TrainerBase operates a subscription based service, whilst some opportunities are posted with jobbing rates, most of the members are Associate and above. In my experience the same cannot be said of LinkedIn or other free to market platforms where jobbing and hobby trainers apply for opportunities at ridiculous rates. Some also have little consideration for the purchaser and give learning and development a bad name.




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Peter Mayes

Peter Mayes.

Peter Mayes is the founder and editor of TrainerBase; dedicated to helping business and other organisations find trainers and trainers find business.

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Tel 07970 746077



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Contributor: Peter J Mayes
 

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