Why Is Managing Your Training Budget Important?
According to the 2018 Training Industry Report, U.S. training payroll has increased from 2017 by nearly 13% to $47 billion. A probable cause of larger training budgets is the fact that businesses acknowledge that a highly-skilled and trained workforce is increasingly essential for employee success in the workplace. An effective training program allows for improved employee engagement and higher staff retention rates, as well as productivity, which then causes increased sales revenues. While there are many ways to maximize your training budget, the following are four ways to consider.
1. Analyze Company Objectives
To run any successful business, you should have both short- and long-term goals that you want to accomplish surrounding employee engagement and training. Once you understand what the company’s goals and needs are in terms of employee efficiency, you can figure out how you can achieve those goals with various training programs. By doing this, you will know what types of training programs you should focus on, such as eLearning, hands-on training, mentoring, etc.
2. Assess Your Staff
It is extremely important to acknowledge the skill levels of your employees, and whether they need varying levels of training. For example, if there is new cash register training, it is likely that workers who are cashiers will need more time to be trained for that new skill compared to those in other positions unrelated to cashiers. Once this is established, companies can better allocate time and training to certain employees where more training would be most effective.
3. Explore eLearning
Often, companies introduce eLearning into their new training programs because it has proven to be cost-effective when compared to hands-on managerial training. eLearning is a great option for businesses to think about when they need to introduce new training, but may have a limited budget. Training videos and conference calls can allow for more room in the budget to be allocated to higher-prioritized needs.
4. Organize Your Training Needs
It is important for a company to understand which training needs come before others. By prioritizing a company’s training needs, a business can be more effective in allocating training time and resources to where they are most needed. The most important needs should be attended to first and those that are not as important can be placed on the back burner and taken care of later.
Taking these four actions can help you get the most out of your training budget and are common practices in many companies. Want to see how you can maximize your training budget? Click here to contact a CoreAxis specialist to give you professional insights on utilizing your training budget to the fullest.