5. Manpower

The most expensive cost of producing information is probably the cost of labour or manpower.

Cost of labour

People are generally needed to collect data, input the data into the system, process the data and then output the resulting information.

Throughout this process, the company needs to pay their wages and thus manpower becomes part of the cost of producing information.


When new people are hired, a process is changed or software is upgraded then staff will require training.

Training is expensive in terms of:

  • paying for the trainer
  • paying wages for people being trained
  • paying the wages for someone to do the normal work for the person being trained
  • paying for the costs of the training venue
  • lost productivity whilst people are being trained
  • slower productivity whilst people 'learn on the job'


challenge see if you can find out one extra fact on this topic that we haven't already told you

Click on this link: Manpower Costs