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Episode Description:
Training is often the first thing cut when budgets tighten. But what if you could show that training delivers measurable ROI?
This episode of the Smart Buildings Academy Podcast focuses on how to justify training investments using numbers that matter to leadership.
You’ll learn how to turn training into a proven profit driver.
We cover:
- Why training is undervalued and how to change that
- What to track before and after training to prove ROI
- A clear framework to quantify training impact
- Real-world examples from contractors and facility owners
- How to position training as a profit engine
If you need to defend or grow your training budget, start here.
Click here to download or listen to this episode now.Podcast Video
How to Prove ROI on BAS Training and Justify Your Budget
As budget season approaches, operations leaders face a clear challenge: how to justify the cost of training. While training has soft benefits like morale and retention, those rarely satisfy financial scrutiny. To protect and expand your training budget, you need hard data.
Episode 510 of the Smart Buildings Academy Podcast delivers a practical method for calculating the return on investment (ROI) of building automation system (BAS) training. This allows leaders to make a compelling business case backed by real numbers.
Why ROI Matters in BAS Training
Training is often introduced in response to increased callbacks, turnover, or poor project execution. Without proof of impact, it becomes one of the first items cut during budgeting.
The BAS industry demands cross-disciplinary expertise in HVAC, IT, electrical systems, and thermodynamics. Labor shortages and project backlogs magnify the cost of untrained staff in lost revenue and operational risk.
A Framework for Measuring ROI
Phil outlines a five-step approach:
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Define Pre-Training Baselines
Track performance metrics before training. Examples include troubleshooting time, rework rates, and overtime hours. -
Identify Metrics Affected by Training
Focus on 1 to 3 metrics directly related to the training topic. For HVAC sequence training, monitor truck rolls and time-to-resolution. -
Quantify Financial Impact
Use calculations like labor savings, reduced rework, increased revenue, and risk avoidance. Saving one hour on 200 calls at $100 per hour equals $20,000 in annual savings. -
Calculate ROI
ROI = ((Return – Investment) / Investment) × 100
For example, a $25,000 training that delivers $60,000 in returns yields a 140 percent ROI. -
Measure Post-Training Results
Evaluate performance at 30, 90, and 180 days. Most training ROI becomes visible within 3 to 6 months, depending on team focus.
From Cost Center to Profit Driver
Training should be viewed as an investment. Data-driven results can justify and expand budgets. If five technicians generate $50,000 in savings, scaling to 15 could bring $150,000.
Track operational metrics, gather pre-training data, and build a record of training outcomes. This creates a repeatable process for future budgeting and planning.
Training improves capability, reduces inefficiency, and drives profit. The ROI is there. Measure it.
For a deeper discussion and insights from the field, listen to this episode on the Smart Buildings Academy podcast.
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