An organization that provides employee training to their employees should specify what information and skills they want the workforce to acquire. Training and development programs can help boost productivity by teaching new skills and updating existing ones. Employee training provides benefits in terms of job security and job satisfaction. The more satisfied the employee is, the better is the job retention.
As per research, in 2019, the total spending on employee training globally reached $370.3 billion. The training expenditures in 2019 declined by 5.3% to $83 billion. An average of $1,286 was invested per learner in 2019. Each employee had to train for an average of 42.1 hours in 2019.
Reasons for the increased cost of employee training
Unless employee training costs are managed and optimized, they can easily spiral out of control, thus lowering ROI. To control the cost of employee training, certain factors breakdown is needed to target. If we know the root cause of increased cost, we can provide a solution. Factors to be considered for the cost of employee training can be divided into two groups
Direct Cost factors:
An introduction to the training curriculum, Training materials, and Training delivery, the cost of the instructor (inside or outside the organization), and time spent by employees (main source)
Indirect cost factors:
Expenses for travel, accommodation, or meals and unexpected events and emergencies
Never underestimate the harm that untrained employees can do to your business. So here are some steps that will help in reducing employee training costs without compromising on quality.
Steps to implement to control the cost of employee training
1. Opt for e training
E-learning reduces indirect cost factors of employee training very effectively. Since the pandemic hit, a lot of employees have been working from home. By now, everyone is used to it. This presents a great opportunity to leverage elearning to deliver employee training while controlling its cost. You can invest in a learning management System (LMS) that can structure your training content, evaluate performance, and can even prepare a detailed analysis of training. Similarly, you can also produce instructional videos for training. Just record and reuse for the further learning process.
2. Implement A Learning Management System
Choose a training platform that suits your needs you can outsource, use a SaaS LMS, and can even self-host LMS. One of the most significant elements of a learning management system (LMS) is its attempt to simplify communication between learners and instructors. An affordable LMS, like one from Ultimate Kronos Group can make a real impact in the online learning experience.
3. Utilize Micro-Learning
Learning in chunks, the modern method of micro-learning, helps in reducing the period of training and effectively increases engagement. 2-5 minutes of learning content is much more easily digestible than reading long blocks of text or watching long videos.
4. Distribute Learning Across The Organization
Already trained professionals within the organization can help in reducing the time and cost of hiring external instructors or trainers.
5. Distribute Learning Outside The Organization
You can offer discounted or free training for members at annual events, online, and through seminars. You can also negotiate with your vendors for training in specific projects or products.
6. Reuse Training Material
You can make onboarding an iterative and optimized process for reusing a certain structure of training and development.
7. Issue Your Own Certificates
Rather than depending on third-party certifications for everything, your firm may become an open license provider. It helps your firm establish itself as an authority in your specific field
These were just some of the ways to reduce the cost of employee training. We hope that this guide will help you move in the correct direction with the same. If we have overlooked a tactic that has worked well for you, don’t forget to mention it in the comment section below.