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TRAINING NEW HIRES COSTS FIVE TIMES MORE; DOWNSIZING REMOVED THE TRAINERS, EXPERT SAYS

 CHICAGO, Dec. 17 /PRNewswire/ -- Because "downsizing" in manufacturing has removed the middle managers who did the training, it costs five times more to break in a new hire today than in 1985, according to a leading management expert.
 With training a new employee now at $10,000, from $2,000 in '85, Robert M. Ady, president of PHH Fantus, the international management consulting firm, projects it will double again by year 2000 to fully $20,000.
 "Downsizing today has removed an entire managerial level from the most productive companies," Ady says. "As a result, each employee must be technically trained rather than relying on middle management to assume that responsibility."
 Significantly, Ady said training expenses have been incorporated into incentive packages that are being negotiated to attract companies to particular states and communities.
 The PHH Fantus projections are based on findings in more than 100 recent manufacturing location projects and the firm's experience across the nation over the past seven years.
 The emphasis on the training skill mix also has shifted.
 In 1985, 80 percent of training costs focused on technical skills, 10 percent on managerial training (employee attitudes/responsibilities) and 10 percent on company culture (overall company history and operations and departmental/interdepartmental issues).
 Today, that mix is 60 percent technical, 20 percent managerial and 20 percent company culture.
 "In tracking the growth and distribution of these costs in a variety of industries over years, we project that by the year 2000, the breakdown will approach 40 percent technical, 40 percent managerial and 20 percent company culture," Ady says.
 Ady attributes the predicted decline in technical training in the workplace to public education curricula becoming more oriented to the basic skills required.
 Much of the training will be carried out on company premises or at state-financed vocational/training facilities adjacent to the company site.
 PRICE TAG FOR WORKER TRAINING
 Year 1985 1992 2000
 Cost per worker $ 2,000 $ 10,000 $ 20,000
 Skill mix (percent):
 Technical 80 60 40
 Managerial 10 20 40
 Company Culture 10 20 20
 -0- 12/17/92
 /CONTACT: Debra Montner of Kerr Kelly, Inc., 203-622-1723, for PHH Fantus/


CO: PHH Fantus ST: Illinois IN: SU:

TM-LD -- NYFNS1 -- 7994 12/17/92 07:30 EST
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Date:Dec 17, 1992
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