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.