Martin is the training manager of the company XYZ. He is busy packing as he is flying to another state to train employees. There are 10 states he has to visit (in a month), to train employees. The overall budget allocated for this training is one million dollars.
Yes! You read it correct! It’s one million dollars for training.
According to ATD, US companies spend more than $1 billion on employee learning.
Surprised? It’s true.
The budget includes costs incurred on:
- Employees’ training time and new recruitments to compensate the slack
- SMEs (Consultants)
…. to name just a few.
But with advances in technology, many companies have started gravitating toward e-Learning to save their expenditure, with the training ROI retained or increased.
How does e-Learning Help Regulate Costs?
Reduced Travel Expenses: As the developed training material will be available online/over the cloud, the trainer need not travel everywhere to train employees. Furthermore, employees can take the training from their desks itself.
Reduced Infrastructural Needs: The fact that e-learning courses can be taken anytime and on any device, cuts down the cost spent on arranging separate infrastructure to facilitate training.
Flexibility: When employees attend a training session, they spend some time there, which is a part of their working time. Eventually, they will have to work over-time to compensate the time spent in training or the work will be delayed. So companies will pay employees for the over-time or hire new employees to meet deadlines. This cost incidentally adds up to the expenses of the company. E-learning provides employees the facility to take up the training in their free time, like while commuting in public transport, waiting in the gym, waiting for a client, etc., thereby cutting down extra expenses.
Even after adopting e-learning for training, certain things are to be factored in to reduce training expenses. Some include:
- Hiring SMEs as full-time employees
- Avoiding unnecessary trainings
- Relying on stock websites for visuals
- Installing aids and materials at the workplace
Let us know their impact in cutting down costs.
Hiring SMEs as Full-time Employees: An SME is an integral part of any training course. The efforts of an SME cannot be avoided to reduce costs. Besides, hiring SMEs as full-time employees rather than consultants will decrease the amount a company has to spend on SMEs.
Avoiding Unnecessary Trainings: Avoid any training that doesn’t add value to the organization. Creating courses on unnecessary topics is a waste of the company’s money and time, and employees’ time as well.
Relying on Stock Websites for Visuals: Why spend more on graphics design when you can get the same graphics for lesser costs on stock websites? Try to find those websites and use their services.
Installing Aids and Materials at the Workplace and Sending Softcopies of Materials: Stick posters or aids such as standard procedures, processes, flowcharts, etc., at the workplace where all the employees can see them. Should you give some training material to the employees, send a softcopy (whenever possible), rather than using several sheets of paper.
These tips will help reduce your training expenditure and get more for less. Please share your thoughts and views.