Calculating Reskill‑vs‑Hire ROI

Build the model that wins budget and aligns pay to capability value.
Wednesday, September 17, 2025
2:35 PM - 3:05 PM

CFOs demand numbers before funding reskilling academies or skill‑based pay bands. This presentation unveils a cost‑model template that factors training spend, opportunity cost, ramp‑up time and wage inflation, producing a clear break‑even point. It then shows how to convert ROI insights into pay‑band differentials tied to verified skill attainment, satisfying pay‑transparency mandates.

This session will explore
  • Full‑cost framework: direct, indirect, time‑to‑productivity
  • Break‑even calculation between reskill and hire paths
  • Linking verified skills to pay‑band differentials
  • Communication strategy for managers and works councils
  • Monitoring ROI over the first 12 months.
Learning outcomes
  • Build a defensible reskill‑vs‑hire business case for Finance
  • Translate ROI numbers into skill‑based pay design
  • Communicate pay changes without triggering attrition
  • Track realised ROI and adjust assumptions over time.

Why this is on the agenda:

Hiring scarce talent can cost 30–50% more than upskilling, yet many organisations lack data to prove it. Meanwhile, pay‑transparency laws force companies to articulate how skills drive compensation.