Thursday, October 07, 2010
Don’t Cut Training Budget, Reduce It
by Brian Sorensen Edited Thursday, December 02, 2010
Originally Published in Biz to Biz NW Arkansas
The past couple of years have been extremely challenging for employers. Costs are up, profits are down, yet stakeholders still expect to see a return on investment. Typically, one of the first things eliminated during periods of budgetary belt-tightening is employee training. There are ways, however, for creative managers to continue to offer training to their employees without breaking the bank. Here are some tips to help you trim your training budget:
- Take advantage of technology. Technology decreases training expense by eliminating the need for face-to-face interaction. Computer-based training (CBT) is cost effective and can be delivered on a just-in-time basis. Instead of sitting through workshops and training sessions that may not be relevant until a much later date, CBT’s can be accessed at the exact point in time the knowledge is required and do not require a facilitator or training facilities.
- Hold training onsite or at centrally-located venues. In times past it was not uncommon for employers to rent training space at hotels or convention centers. This model obviously carries with it considerable expense, especially when you factor in catering and travel expense for those coming from other locations. Conducting training at company-owned facilities and eliminating catering can trim expenses considerably. If participants are geographically dispersed, conducting training at a centrally-located venue can reduce the number of miles traveled, which reduces mileage reimbursement and, potentially, the need for overnight accommodations.
- Facilitate the training yourself. It goes without saying that contracted trainers can be expensive. Bringing in an outside trainer or consultant can cost upwards of $1,000 per day. Utilizing internal trainers can not only reduce or eliminate this expense, but it can also increase the ability to connect the training curriculum to everyday on-the-job applications. Internal trainers are keenly aware of organizational challenges and opportunities to implement the training once participants return to the workplace.
- Implement action learning into your organization. Action learning is learning by doing. Teams of employees of various skill levels and functional backgrounds are assembled to work on organizational problems that are real, relevant, and require action plans to solve. These teams meet on a regular basis as action plans are implemented to discuss progress. The benefit to action learning is that there is virtually no costs associated with the process, employees naturally learn from one another, and perhaps most importantly, there is immediate payback to the organization.
Training is important in both good times and bad. In fact, it can be argued that companies that continue to invest in training during periods of economic downturn will benefit from the improved skill set of its employees and, perhaps, from increasing loyalty from those employees. Eliminating training altogether risks damaged workforce morale and decreased competitive advantage compared to organizations who continue training in some capacity. So instead of cutting your training budget entirely, consider implementing some of the tips above and reap the benefits of happy, skilled employees.
Brian Sorensen is President-Elect of the Northwest Arkansas Human Resources Association (NOARK), an affiliate of the Society of Human Resources Management (SHRM). He is employed by Tyson Foods, Inc. as a Talent Development Manager, and is certified by the Human Resources Certification Institute (HRCI) as a Senior Professional in Human Resources (SPHR).
