For many companies, training costs present a unique budgeting challenge. From the obligatory new-hire training programs, compliance updates and safety courses to “soft-skills” performance training in such areas as sales, customer service, and business leadership, training costs can add up in a hurry. To compound the budgetary challenge, some managers are inclined to identify training as a catch-all solution to any number of internal issues, even when it may not be the most appropriate tool.
As noted in last month’s article, “Measuring ROI for Training,” organizations should strive to measure returns on their training investments. But they can also explore various cost-effective alternatives to traditional training routes. Here are four widely used ideas to keep a lid on training costs while still providing the necessary educational resources for employees.
- Outsource non-core training programs. It often doesn’t pay for an organization to build all of its training programs in house. Especially in industries characterized by constantly changing technologies or regulations, tapping external sources can result in more accurate, consistent, and up-to-date information, as well as being more cost-effective. What’s more, many vendors can develop custom programs to meet specific organizational needs. Even tailored programs are often more affordable than a do-it-yourself approach, which requires adding technical, teaching, and measurement expertise to your own staff and investing in time-consuming new processes.
- Provide online or e-learning options. Companies can realize significant cost savings by taking advantage of computer-enabled teaching technology. Online programs make learning more accessible and convenient, and they can be more efficient than traditional classroom methods. For example, they can eliminate scheduling conflicts and give employees the flexibility of self-paced learning, day or night. Web-based courses, video seminars, or lessons offered on CD-ROMs also eliminate expensive travel and the associated time away from the workplace.
- Recruit internally. By training existing staff to fill new positions that would ordinarily be filled through a public job posting, companies can reduce costs associated with new employee orientation and training.
- Link learning directly to business objectives. By aligning training activities more closely with business objectives, companies can reap additional savings. Choose courses that make sense for employee development and the business strategy, and eliminate those that don’t. (Remember that training that improves morale, motivation or job satisfaction can have a direct impact on employee retention and, ultimately, a company’s bottom line – so be sure to take a broad view of your business objectives.)