Internal and external environments are constantly changing for virtually every type of business and organization regardless of size or location. INTELLEO shares five reasons why organizations want budget friendly training.
Keeping Up with The Joneses
It’s not simply a matter of which organization has the biggest toys or the most bells and whistles. A simple flashback to Marketing 101 Class is a good reminder that organizations should conduct a SWOT analysis (strengths/weaknesses/opportunities/threats) at least annually to ensure their employees have the tools and resources to remain competitive. A handful of reasons why are illustrated at FindCourses.com. Among the top five:
- Budget-friendly training increases employee retention. Organizational members are likely to remain in their jobs when they are given opportunities to acquire additional skills or improve the ones they have. Educational and professional development training play key roles in employee retention. Some studies indicate that as many as 25 percent of workers move on from current positions if training and self-improvement are limited.
- Training is less expensive than replacing. By some estimates, it costs a business approximately one-third the annual salary of a departed employee in order to attract, train and replace that employee. Experience and continuity in the workplace are not cheap commodities.
- As is in life, in the business world the only thing constant is change. Budget-friendly training helps employees and organizations stay current with changes in industry standards, evolutions and advancements in technologies and changes in market conditions. Timely training also helps organizations keep up with changes in consumer trends, business-to-business competitive advantage or internal and external environmental threats.
- Budget-friendly training increases teamwork and promotes camaraderie. Especially if it can be done in house and meets an organization’s work schedules and production demands. Bringing people from different departments or business divisions together for training that results in operational and cost-saving efficiency makes employees feel everyone is wearing the same colored jersey and working for a common goal.
- As pointed out by CrisisPrevention.com, cost-effective training can play a vital role in an organization’s ability to remain current and stay ahead of local, state and/or federal regulations that may impact a business’ ability to remain legally compliant and avoid fines, penalties or other negative outcomes.
Crunching the Numbers
While there is no exact science in determining an organization’s budget-friendly training costs, TrainingIndustry.com does offer some tips on how businesses can determine and hold the line on training expenses. Briefly they include:
*Assessing each employees’ weaknesses matched against company goals and determining if an organization’s acquisition of new products, goods or services warrants the need for new or additional training.
*Low-cost or shared cost training opportunities outside the business such as annual industry specific trade shows, seminars or conferences; some general some very specific in terms of training topic.
*Identifying current employees with superior skills and providing them with inexpensive in-house budgets and resources to conduct internal training of fellow employees. Not only are training costs reduced, but many employees feel more comfortable learning from co-workers compared to learning from outside consultants.
*Seek out Service Provider packages. When new products or systems come into the marketplace, often the suppliers of those products and services will provide training packages. This is especially important in businesses that utilize a lot of technology. Not only might your employees need training, but customers who are expected to use your organization’s business offerings may well need that training, too.
*When budgets are tight, especially for small businesses, Cornerstone points out those times may be the most critical times for training. Employees may be asked to take on additional areas of responsibility wear more hats, and broaden their day-to-day skills—all situations that beg for low-cost training opportunities.
How Many Training Dollars Are Enough Training Dollars?
Whether factoring in for employee training needed for technology upgrades, or threat assessment and employee training for an active-shooter in the workplace scenario, organizations try to strike budget-friendly training allocations by balancing risks-versus costs-versus benefits.
EfrontLearning indicates that approximately 2 to 2.5 percent of a company’s annual budget is considered standard for yearly training expenses. And this source provides three common sense steps all organizations should take in helping determine what constitutes low-cost, but effective training. Those steps include:
- Measures all organizations should take BEFORE planning a training budget.
- Eight line-item factors in determining final training allocations and resources.
- Factoring in both internal and external organizational factors to optimize each and every training dollar spent.
The overall message conveyed from this source? By prioritizing and determining the cost-revenue structure of your business and having a clear understanding of how training and education contributes to your organization’s strategy and goals, these steps can help you develop positive training results without going over budget.