Calculating Reskill‑vs‑Hire ROI & Pricing Scarce Skills
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.
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.
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.