The Average Cost of Training a New Employee in 2025

Training a new hire isn’t just about showing them the ropes—it’s an investment that can shape your team’s productivity and your bottom line. 

In 2025, training costs vary widely depending on company size, industry, and training methods. Some companies spend under $400 per person, while others spend over $1,000. (Source)

Knowing the average cost and what drives it helps you plan smarter and avoid overspending. 

Let’s break down the latest numbers, what they mean for your business, and how you can make every dollar count.

The Current Average Cost of Training a New Employee in 2025

As of 2024—the most recent full-year data available—the average cost to train a new employee stands at $774 per learner, a notable decrease from $954 in 2023 (Source)

Breaking this down by company size:

• Large enterprises (10,000+ employees) spent $398 per learner in 2024 (Source)
• Mid-size companies (1,000–9,999 employees) averaged $739 per learner (Source)
• Small businesses (100–999 employees) incurred the highest cost at $1,047 per learner (Source)

This change shows a bigger trend: even though training costs per learner went down overall, there are still big differences between companies of different sizes.

How costs have shifted over time:
From 2023 to 2024, the average cost fell from $954 to $774, showing tighter budgets or efforts to cut costs as business priorities changed 

Inflation and post-pandemic impacts:

Recent reports don’t clearly link these changes to inflation or pandemic recovery, but other signs show that training is changing. 

In 2024, organizations spent more on outsourced training and learning technology, even though total budgets went down (LearnExperts). 

This points to a shift toward using digital or external resources, likely to save money and adjust to the hybrid work styles that grew after the pandemic.

Factors That Influence Training Costs

The cost of training isn’t the same for every company. It depends on a mix of internal needs, industry demands, and the way the training is delivered. 

Here’s a breakdown with real-world examples for each factor.

Company Size and Resources Available

A 50-person startup running a single customer service workshop might spend $5,000 total, which is $100 per employee. 

A global company with 5,000 employees offering the same workshop could spend $300,000, even if the per-person rate is lower due to bulk pricing. 

Larger budgets may allow for advanced tools, while smaller companies may need to rely on simpler methods like in-house trainers.

Industry and Role Complexity

In retail, training might focus on product knowledge, sales tips, and customer service skills, which can be covered in a few short sessions. 

In the tech industry, onboarding a new software engineer may require weeks of coding bootcamps, security training, and product-specific workshops. 

Complex roles usually need more detailed content, making the process longer and more expensive.

Training Format

An in-person leadership retreat might cost $20,000 for travel, lodging, meals, and event space. The same content delivered online could cost $5,000 for webinar tools, digital materials, and facilitator fees. 

A hybrid program could have in-person kickoffs with follow-up online modules to balance cost and engagement.

Length and Intensity of Onboarding

A half-day compliance training might be delivered once and cost $2,000. By contrast, a six-week onboarding program for new managers with weekly workshops, mentoring, and final projects could cost $15,000 or more. 

Longer training also means more time employees spend away from their core work, adding to indirect costs.

Trainer Expertise and Materials

Hiring a local trainer might cost $500 per session. Bringing in a well-known industry expert could cost $5,000 or more for a single day. 

Materials matter too, printing a few handouts is inexpensive, but creating custom videos, interactive simulations, or branded manuals could cost thousands.

Technology and LMS Costs

A small company might use a free LMS like Google Classroom. A large enterprise may invest in a premium LMS such as SAP Litmos or Docebo, which can cost $10,000 to $50,000 annually. 

Additional costs come from licenses for tools like Zoom, Kahoot, or Articulate Storyline for interactive content.

Direct vs. Indirect Training Costs

Training costs fall into two main categories: direct and indirect. 

Direct costs are the obvious, visible expenses. These include instructor fees, printed or digital training materials, and software subscriptions for learning tools. You can track them easily because they show up as line items in your budget.

Indirect costs are less visible but often more significant. They include lost productivity when employees step away from their regular work to attend training, the time supervisors spend guiding and monitoring new hires, and longer onboarding periods that delay full productivity.

In many cases, indirect costs outweigh direct ones. For example, paying $2,000 for an instructor is straightforward, but if a team of 10 spends two full days in training, the lost work hours could cost far more.

To find the true total cost per hire, add both direct and indirect costs, then divide by the number of new employees trained. 

This calculation gives you a clearer picture of the investment required to get each new hire fully up to speed.

How to Reduce Employee Training Costs Without Sacrificing Quality

Cutting training expenses doesn’t have to mean lowering standards. The key is to make smart choices about delivery, resources, and tracking.

One way is to implement blended learning, combining online modules for flexibility with in-person sessions for deeper engagement. This reduces travel and venue costs while keeping interaction strong.

Standardizing onboarding materials also saves money. Creating a consistent set of slides, videos, and checklists means you can reuse them for each new hire instead of starting from scratch.

You can use peer-to-peer training and mentorship to tap into the skills of experienced employees. This not only cuts down on external trainer fees but also strengthens internal knowledge sharing.

Leveraging free or low-cost digital tools like Google Workspace, Trello, or Zoom can replace expensive software. Many of these tools offer training-friendly features at little to no cost.

Finally, track training ROI by measuring performance improvements, retention rates, and productivity gains. This helps you see which programs work best so you can focus spending on what delivers real value.

By combining these strategies, you can keep training effective and engaging while lowering the overall cost per learner.

Industry-Specific Training Costs

Training expenses can vary a lot depending on the industry. Jobs that require specialized skills or certifications often cost more to train for than roles with simpler requirements.

High-skill industries like tech and healthcare usually have higher costs. In tech, employees may need weeks of training on complex systems, coding languages, or cybersecurity protocols. In healthcare, training can include clinical skills, medical equipment use, and patient safety procedures. Both require expert instructors, advanced tools, and sometimes licensing fees.

Low-skill industries such as hospitality or retail tend to have lower training costs. Programs often focus on customer service, basic safety, and product knowledge, which can be taught quickly and with fewer resources.

Regulated industries face even higher expenses. Sectors like aviation, finance, and healthcare must meet strict compliance and safety rules. This means extra time, specialized content, and frequent refresher courses to meet legal standards.

Examples of sector-specific cost ranges:

• Technology: $1,500–$5,000 per employee for onboarding and technical skills
• Healthcare: $2,000–$7,000 per employee, including compliance training
• Retail: $200–$800 per employee for sales and service skills
• Hospitality: $300–$1,000 per employee for service and safety training

Knowing your industry’s cost range helps you budget realistically and plan more effective programs.

The ROI of Employee Training: Why Cost Isn’t the Only Metric That Matters

When you think about training, it’s natural to look at the price. But cost alone doesn’t tell you if it’s worth it. You also need to measure ROI, or return on investment. ROI compares the benefits of training to what you spend on it.

For example, a program that costs $1,000 per employee may actually save you money. If it lowers mistakes, improves productivity, or helps employees stay longer, the value can be much greater than the cost.

To measure ROI, track more than your budget. Look at:

• Onboarding time (how long it takes for a new hire to work at full speed)
• Performance improvements (better quality, speed, or accuracy)
• Turnover rates (how often employees leave)

Shorter onboarding means people start contributing sooner. Better performance can increase output. Lower turnover saves on hiring and training costs.

Once you see the results, you can decide what to do next. Keep programs that work well. Improve or replace ones that don’t.

By focusing on ROI, you make sure training is not just an expense. It becomes a smart investment that supports long-term success.

Training Budget Trends to Watch in 2025

Training methods are changing in 2025 to be more flexible, personal, and cost‑effective.

One key shift is moving away from long, in‑person classes toward shorter, on‑demand online modules. You or your team can learn when it fits your schedule. This saves on travel and venue costs.

Another trend is using AI‑powered learning platforms, such as Coursebox.ai. This is a tool that helps you design and manage courses using artificial intelligence. 

It can generate outlines, videos, quizzes, and even tutor helpers quickly. That saves you time and makes the content more personal to each learner.

There’s also growing use of VR and AR, that means virtual and augmented reality, in hands-on fields like healthcare, aviation, and manufacturing. These let you practice real-life tasks in a safe, virtual setting. It cuts risk and lets you repeat steps until you’re confident.

Here’s what to watch in 2025:

• Short online modules that work on your schedule
• AI platforms like Coursebox.ai that tailor training for each person
• VR and AR tools for safe, real-world practice

These trends aim to lower costs while helping learners stay involved and actually remember what they learn.

How to Track the Average Cost of Training a New Employee in Your Company

Knowing the average cost of training a new employee starts with tracking your own numbers. First, make a list of direct costs. This includes trainer fees, printed or digital materials, software subscriptions, and travel expenses.

Next, list your indirect costs. These are things like the time employees spend away from their normal work, the hours managers spend guiding new hires, and the extra time it takes before a new employee is fully productive.

Once you have both lists, add up each category and combine them for a total. Then divide that number by the total number of employees you trained in the same time period, such as a quarter or a year. This gives you the cost per employee.

Example:

• Direct costs: $4,000 (trainer fees, materials, software)
• Indirect costs: $6,000 (lost productivity, manager time)
• Total cost: $10,000
• Number of employees trained: 8
• Average cost per employee: $10,000 ÷ 8 = $1,250

To keep this process simple:

• Track every cost in a spreadsheet as it happens
• Review your totals at the end of each quarter
• Compare your results to industry benchmarks

By following these steps, you can see exactly where your training money goes and find ways to save while keeping quality high.

Conclusion

The average cost of training a new employee in 2025 can be anywhere from a few hundred dollars to over a thousand. 

The exact amount depends on your business size, the industry you’re in, and how you train people. When you understand what drives these costs and use smart training methods, you can improve productivity without going over budget. 

The aim isn’t only to spend less, but to spend in a way that helps employees work better and get up to speed faster.

Frequently Asked Questions (FAQ)

1. What is the average cost of training a new employee in 2025?

The average cost of training a new employee is around $774 per person, based on the most recent data from 2024. Costs vary depending on company size, with small businesses often spending over $1,000 per hire while large enterprises spend under $400. These differences come from scale, resources, and training methods.

2. Why do training costs differ between small and large companies?

Smaller businesses tend to spend more per employee because they cannot spread costs across thousands of hires. They may also need to rely on external trainers or one-off programs. Larger companies benefit from bulk pricing and standardized systems that lower the per-person cost.

3. What factors influence the cost of training new employees?

Training costs are shaped by several factors including company size, industry, training format, length of onboarding, and the expertise of trainers. Technology also plays a role, since premium learning management systems or VR simulations increase costs compared to basic in-house training. Direct expenses like trainer fees matter, but indirect costs like lost productivity are often even higher.

4. How can companies reduce training costs without lowering quality?

Businesses can save money by blending online and in-person training, standardizing onboarding materials, and using peer-to-peer mentoring. Leveraging free or low-cost digital tools is another way to cut expenses. Tracking ROI helps focus spending on methods that actually improve performance and retention.

5. What is the ROI of employee training?

ROI, or return on investment, measures the value training provides compared to its cost. A program may cost $1,000 per employee but pay for itself if it reduces errors, shortens onboarding time, or improves retention. When companies measure ROI, training becomes less of an expense and more of a long-term investment in growth.