How to Reduce the Cost of Employee Training?
Saving on employee training is not the same as completely abandoning it. Today’s leaders understand the importance of investing in team development. And instead of looking for and enticing experienced professionals, they prefer to grow them within the company. If the organization is faced with the task of reducing training costs simultaneously, you can abandon classic pieces of training and seminars in favor of online courses and webinars.
Benefits of Staff Training at the Expense of the Company
First of all, let’s figure out why an employer needs to train employees at the expense of the company?
There are cases when the training and development of personnel is the direct responsibility of the manager. Some specialties (for example, doctors or teachers) provide for mandatory regular professional development of employees. You cannot refuse it since this is a legal requirement. For other professions, training at the expense of the company is voluntary. However, many employers, on their own initiative, allocate time and budget for it.
The fact is that employee training has many advantages:
- improving the qualifications of personnel, the ability to understand new technologies and trends helps the company maintain its leadership position in the market.
- if the company cannot find the necessary professionals, they can be raised on their own.
- the more opportunities people have for growth, the longer they stay with the company.
- if the company operates in international markets, employees must have all the necessary certificates and diplomas that can be obtained after training.
- training courses increase employee loyalty as they demonstrate the care of the company.
This is why the organization’s training costs pay off quickly, and the lack of such an investment is often too expensive. Also, consider that the training employees will be investing their time, effort, and possibly money for a paper writing service MasterPapers, to keep up with the workload.
How to Calculate the Cost of Employee Training?
Investments in employee training can be divided into two categories: direct and indirect.
Direct training costs include payment for the work of trainers and coaches, the cost of courses or participation in seminars and business games, purchase of training materials, etc.
Indirect costs are those of renting classrooms, purchasing equipment (for example, a projector), paying for business trips for employees from remote branches of the company, etc.
Typically, the structure of the training budget looks like this:
- 50% – payment for the work of specialists who draw up curricula and manage the process.
- 25% of funds are allocated for the rental and purchase of instruments.
- 20% of the budget can be allocated for the creation of educational content.
- 5% – for additional costs.
The cost of vocational training largely depends on the form of training. Conferences and seminars with many participants are some of the most expensive and difficult events to organize. On the other hand, pieces of training and master classes with invited teachers are not much cheaper. The most economical option is online classes on a learning platform.
As a rule, the costs of training an employee are calculated for at least a year. Of course, during this time, the budget can be adjusted. For example, if the working conditions in the company have changed, a new product has been released, or the employees do not have enough knowledge to work, additional classes can be organized.
It is important to consider not only cash costs. The costs of organizing training include working time. In the process of taking full-time courses, employees cannot fulfill their duties, which means that the company loses profits. If a supervisor or a full-time specialist conducts the training, this will also take away the employer’s hours of their working time. So, employees need to have an open option to use services like Masterpapers for their learning assignments if they need to.
Ways to Reduce Training Costs Without Sacrificing Quality
The company can train employees in two ways: with the involvement of external specialists and with the help of internal resources.
In the first case, the company organizes educational events and invites third-party trainers to purchase ready-made courses created by external specialists. To reduce the cost of training employees in this category, you need to reduce the number of events, set training limits.
In the second case, it is important to create a corporate environment where regular development is considered one of the core values. For training, you can use the company’s own materials and involve professionals who work in the state. Here, savings are achieved by increasing the share of internal training.
Additionally, training materials can be created by a relevant professional – Choosing the Best Writing Companies | Top Options. Then, an in-house, high-ranking employee can teach other employees the received materials. This can significantly decrease costs without sacrificing much training quality.
In the End
In all cases, training can be conducted both face-to-face and online. With the remote method of transferring knowledge, the cost of training personnel is significantly reduced. The manager does not need to spend money on travel, tickets, hotel accommodation for employees, and the coach. Therefore, more and more companies are choosing this training option.
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