Motivation (The Brian Tracy Success Library)

People Are the Greatest Cost

Aside from the cost of goods sold, the average company’s operating expenses are about 85 percent payroll and benefits and only 15 percent everything else, including rent and utilities. Even including manufacturing costs, the average company spends 65 percent of its gross revenues on salaries, wages, and associated costs.

According to a study conducted by the American Society for Training and Development, companies spend on average about one percent or less of their gross revenues on training the people who are expected to generate those gross revenues. According to that same study, the top 20 percent of companies in profitability in every industry spend 3 percent or more of their gross sales revenue on training their ...