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Tips for Managing Your Training Budget

 

Posted on Mon, 04/29/2019 - 08:30

Training is a critical element for the success and growth of your organization. It enhances employee engagement and productivity. Well-trained employees feel valued. They also ensure that your organization stays competitive. Organizations are keen in investing on training when everything is on track. However, the moment there is a dip in the business, they treat the training investments as unnecessary expenses and axe the training budget. That may seem the easiest thing to do in order to save cost, but you should consider the long-term implications of the unskilled workforce. If your employees do not have the right skills, it will have a negative impact on productivity.

Training budget refers to all the direct and indirect costs that are associated with creating training materials. It is important that you allocate a reasonable budget for the training needs of your organization. It helps in tracking the return-on-investment that the training provides for the organization. The budget helps you track expenses for each head and implement a plan to reduce pointless spending.

Here are some tips that will help you to allocate the budget where you actually need it and reduce training costs.

Custom eLearning Budget

#1: Assess your needs

The first step is to assess the training needs of your employees. Point out the areas where your workforce needs training. Maybe they need to upskill on the new products or tools you offer, or maybe they need help brushing up their negotiation skills. You need to assess all your employees to identify existing knowledge gaps. Once you know the exact gap, you can research the available training options. This way you do not spend your resources on areas that do not need them.

#2: Know what you already have

Most organizations are aware of their training budget. They know how much they have spent. But they might not be totally aware of where they have spent the budget. You need to know what you have already got for the amount you have invested in your training so far. You have to find a way to reuse your existing resources.

#3: Use web-based learning

Traditional classroom learning requires investment in travel, accommodations, a venue, equipment, printed materials, and so on. Web-based learning, on the other hand, may require an initial investment, but you can write it off in the long term. Since the content is online, you can eliminate the travel and accommodation cost of learners and facilitators. You do not have to book a venue or rent training equipment. And, you can help the environment by omitting printed handouts or workbooks. The same course can be utilized every time unless you need to update the content.

#4: Select the right technology

There are several authoring tools and learning management systems available in the market. You need to conduct a cost and need analysis to discover which one is the best fit for you is. If you do not wish to design and develop the learning in house, then you can consider selecting a vendor. Here, too, you need to do a thorough SWOT analysis and choose a partner who can think through your need and add value to your learning.

Planning out a realistic training budget requires some forethought. You need to consider the learning goals of your employees and factor in unplanned learning requirement.

Designing Digitally, Inc. can help you develop your entire ecosystem of training, and will work around your budget needs. We design creative learning experiences that can span over a short amount of time or be delivered over a paced schedule to ensure longer exposure to learning. We offer gamification, game-based learning, simulations, and mobile strategies to help make learning more engaging and effective.

To learn more about online learning and how it can help meet your company’s training goals, schedule a free consultation with our team today.

Related Article: How to Reduce the Cost of Your Elearning

By Designing Digitally, Inc.
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