How to make the most of your training budget?
- 11 August 2018
- Written by: bemelmans
- Category: E-Learning
It is vital to make strategic investments in employee development for empowering teams and ensuring the continued success of a company. In fact, training expenditures in the U.S. cost $70.65 billion in 2016. It has been noted however that a good amount goes to waste when employers don’t consider the specific needs of the company and employees of all experience levels and positions.
Hence, it is crucial to establish a training budget for your organization to ensure you allocate appropriate funds for employee development over the course of a year. Planning in advance for training expenses and linking them to strategic objectives basically contributes to cost-cutting measures and leads to more productivity.
An article by the Harvard Business Review highlights that the lack of employee development efforts is one of the reasons behind employees leaving – “Workers reported that companies generally satisfy their needs for on-the-job development and that they value these opportunities, which include high-visibility positions and significant increases in responsibility. But they’re not getting much in the way of formal development, such as training, mentoring, and coaching—things they also value highly.”
Today, providing online employee training is one of the most cost-effective ways to create employee development plans. After successful implementation of a training program, it is essential to set measures that help you calculate the effectiveness of your training program. This is when you’ll see that the ROI is well worth it.
Here are some tips to make the most of your training budget:
Assessing Needs and Goals
The first thing to consider is to know what you want to accomplish by training your employees. Identify if there are gaps in their knowledge and skills. From there, you can determine what is needed to bring them up to your company goals. More likely, a good training and development program will be required to boost their performance. It is important to review each employee at least annually to assess gaps. Being aware of these gaps will allow you to explore your training options and therefore remaining within the budget.
Exploring Service Provider Packages
It is a good idea to outsource to a specialist training company that will take time to understand your training needs to help bring about positive changes in your organization. Global training providers such as Procurement Academy have access to the most up-to-date tools, information and courses, and possess the relevant skills to maximise the potential of your workforce.
Service provider programs are perfect for teams and can even reach across several departments. You should keep in mind that the training you offer to your employees should help you reach your business goals. Hence, by taking advantage of several types of training, you can develop a customized program that is relevant and efficient. It is essential to ensure that the benefits are consistent and measurable so you can continually evaluate your training plan and strive to be even better.
Minimize costs with eLearning
Today, the emergence of new technologies has made training more accessible, flexible as well as cost-effective. More and more global organizations are widely investing in eLearning to help them remain competitive in a global marketplace and yield good dividends for shareholders.
So, if your organization hasn’t made the shift to eLearning yet or is just experimenting with this method of training, there are several reasons to make the move. This is mainly because digital learning maximizes your training budget and offers many other tangible benefits:
- It allows you to save money and time. With eLearning, employees don’t need to travel for training, and there are typically no facility costs.
- Usually, the costs for instructors and Instructional Designers occur up front, but once a course is developed and delivered, it can be used over and over again.
- eLearning is an environmentally friendly option for training programs. For instance: by eliminating travel to and from training classes and printing classroom materials, your organization is leaving a smaller footprint on the environment.
- eLearning is highly accessible – it can be available 24/7 so employees, partners, and customers can take training just-in-time or when it’s convenient. This is mainly appropriate for millennials who prefer to work flexible hours and remotely.
- eLearning involves a number of creative and interactive activities such as engaging content like videos, quizzes, games etc… All these help to increase retention in learners.
- eLearning is very convenient for companies with employees in multiple time zones; eLearning technology platforms can bring those learners together into one online experience.
Putting in place a comprehensive training budget will allow you to monitor expenses associated with training activities and ensure you’re getting the most for your money. The good thing about having a training budget is that it lets you closely monitor all training expenses throughout the year. As soon as trainees begin taking the courses, you can monitor these expenses to assure they remain in line with the budget.
Return on Investment
It is important to figure out your return on investment by determining whether your training courses increase sales, decrease mistakes, or increase customer satisfaction. This will help you determine if the programs are worth the money invested. With a budget, you can break training expenses down to design and delivery costs. Therefore, you can compare the amount of money it took to create and run the program to the results it produced, allowing you to measure whether the investment was worthwhile.
It is certain that a training budget has great importance for an organization. It can document the return on investment (ROI) that training provides for your company. Since training budgets directly impact your company’s bottom line, it is important to make the right investment and get the most from the training program you choose.