A company is only as good as the team behind it. The only way to improve employee performance is to invest in training and development. When looking to cut costs, training is often the first thing companies look. However, studies have shown cutting training programs can drastically diminish long-term company performance and productivity. Here are some ways to control corporate training costs without sacrificing the quality or productivity of your team.
Set a Budget
Recent studies show that U.S. companies are spending more and more every year on corporate training, with total training expenditures rising to more than $93.6 billion (up from $70.6 billion the previous year). However, for many small and medium size companies, training is often an afterthought when it comes to budget. When developing a training budget, be sure you take into account all the different direct and indirect costs of implementing a training program. Most companies reinvest 2-5% of their renumeration budget into training programs.
Prioritize Development Areas by Strategic Gain
Having a clear understanding of how training fits into your overall company strategy will allow you to reach your goals without breaking the bank. Focus on training development areas that align with specific corporate objectives such as improving workplace efficiency or bridging performance gaps. Building your training strategy around your company’s targeted goals will help eliminate training that doesn’t contribute to broader company objectives and allow you to make the most of your employee development investment.
Take Advantage of Your Employees’ Expertise
Retention is without a doubt the most important outcome when investing in employee development. Why waste time creating a training program if it’s not going to make a lasting impact? Being able to apply knowledge acquired in training is crucial for retention. Ensure that you’re providing employees opportunities for job shadowing, mentoring, experiential learning, and coaching, especially in cases where the training is related to a practical skill or an existing job.
Employees can also be an invaluable asset when creating training programs and content. Reach out to both junior and senior employees for feedback and input. Allowing employees to be a part of the process will also give them a sense of involvement with the program, and create buy-in to the objective.
Enlist the Help of an Outsourcing Training Partner
According to research conducted by MicroTek, operating an in-house training facility can often cost in more than $229,000 per year due to direct costs such as real estate, utilities, taxes, furnishings, and IT infrastructure and hardware. For many companies, indirect expenses like dedicated training program staffing salaries and expenses can be even higher than direct costs. However, both direct and indirect expenditures can be eliminated entirely by partnering with a dedicated, third-party training outsourcing provider.
Choose the Right Training Vendor
You can reduce your corporate training costs even before training starts by choosing a vendor that can provide training venues and services fit to your exact budget. Key training venue features and amenities that can make a big difference in your training session include:
- Modern presentation and A/V equipment
- Dedicated, on-site tech support and hospitality teams
- Café and lounge areas for guests
- On-site business center
- Free gigabit Wi-Fi connectivity
- Event coordination, scheduling, and logistics management services
- Flexible catering options
- Lodging and transportation booking services
- Computer labs
- Virtual training and collaboration tools
Consider Virtual Solutions
Utilizing virtual solutions for training can be a huge cost saver for your program by making employee education accessible to your entire team, no matter where your students or instructors are located. A virtual training room combines the learning benefits of live, instructor-led training with the power and flexibility of a virtual platform. The result is an equal learning environment in which remote participants experience the same instructor interaction and learning benefits as those physically in the classroom.
Evaluate
A good employee training program is one that is constantly adapting to the needs of the organization and its participants. In order to ensure your program is fulfilling its objectives, make sure you’re constantly evaluating its effectiveness by monitoring training-specific key performance indicators and getting feedback from participants, instructors, and key stakeholders within the organization.
Creating the Right Training Program
The right training program will increase employee engagement, retention, and productivity, making your business more profitable. More information about training options and opportunities is available here.
Latest posts by Mercy Ehrler (see all)
- The Keys to Controlling Your Corporate Training Costs - March 23, 2023
