According to the Training Industry Report, in 2019, 14% of companies intended to reduce their employee training costs. Last year, these figures increased by 5%. Duh, no wonder. What a year! Maybe your training budget was reduced. Or maybe you plan to allocate resources efficiently. Either way, this article will help you find out how to make training an investment, not cost, and spend on it reasonably.
The Сost of Training Employees and What It Depends On
First, let’s see what impacts training expenditures. There are basically three pillars that predetermine how much you’ll spend training employees:
- Business size. One size doesn’t fit all, and depending on incomes and the number of employees, different organizations can afford different types of training.
- Industry. In some industries, like leisure and hospitality, or maintenance work, jobs don’t require much expertise or experience, and on-the-job training tends to be sufficient. In turn, other businesses support extensive training. Take Amazon for instance: it retrained 100,000 nontechnical workers to transition into software engineering careers.
- Training methods. Coaching and external training are costlier. Be it training supplies, venue rental, or travel costs and accommodations for trainers and trainees – you pay not only for the training itself but for many things that come along with it.
The latter is particularly relevant for the traditional face-to-face type of training. Face-to-face training presupposes that we meet each other personally in a physical setting, and there is an instructor that leads us all the way. This instructor-led training is instructor-dependent because the presence of a trainer is essential. It entails repetitive fees for every training session. Plus, you need to provide the necessary training facilities.
A progressive alternative to this approach is eLearning. It is the way we can transmit and access educational content anytime and anywhere using technology. Basically, it is the use of the Internet and tools that allow you to:
- Find free or paid learning resources (massive open online courses on Coursera, FutureLearn, edX, Udacity, or curated content)
- Host virtual training (web conferencing tools like Zoom, Skype, GoToMeeting, WebEx)
- Create online courses (authoring tools)
- Store and manage learning materials and processes (learning management systems)
- Use outsourcing and order content from a third party
With these tools, moving at least a portion of training online is no big deal. Of course, some of them are paid. But with their help, you’ll be able to reduce employee training costs significantly. Moreover, they can eliminate the impact of hidden costs that go along with face-to-face training. Let’s consider them next. Read more.