Training is expensive. Triple-so for small businesses and startups. However, the benefit of proper training and development programs has the potential for substantial ROI.
Maybe you’re thinking about implementing more employee training but are unsure about the costs or whether it would be worth it. It can be difficult to quantify training. There are many ways that you can evaluate the costs and benefits associated with doing it properly and comprehensively.
All companies are different, and what each deem as valuable will also differ. Your goal might be to create more innovation within your company, or you might value each employee’s company expertise. Whatever the value, it can be enhanced by using a complete employee training program.
One of the most glaring costs of training an employee is the price of the initial training itself. If you need to hire a trainer or conduct training off-location, that adds onto the costs which are unavoidable.
However, there are some things you can change to reduce or offset these costs. You can conduct group training or switch to on-the-job training. The best solution would be to use an employee training software that can be accessed anywhere and anytime, such as 1Huddle.
There are also indirect costs associated with employee training, as the training hours will have to be paid or come out of working hours. In addition, you will need to offer a pay raise to those employees who achieve a greater level of skill.
To help you assess the ROI of employee training you will first need to identify what needs the training will fulfill within your company. Once you know your needs, align them with KPIs or other useful benchmarks.
Next, attach a value to the results in a quantifiable manner. This will help you measure if the training has had the intended effects. For example, if you want to increase efficiency by 20 percent, then find out what your current efficiency rate is and measure it again after training is complete.
You will also experience other qualitative results which you can include in your cost-benefit analysis of your employee training program. In-job training can help prepare your employees for elevated roles. In-house talent helps create more loyalty and morale within the company. List out all of the qualitative benefits you believe will occur due to training.
Lastly, list the costs associated with training your employees, and start logging your training hours within your HR system which will help you assess the ROI of training. If you end up with a positive number, your benefits outweigh the costs.
By investing in the training of your employees, you can enjoy many benefits including some of the following:
You can make continuous learning a reality in your company today. 1Huddle is designed to level-up your workers all year long. 1Huddle can support every worker, regardless of their skill level or what industry they are in. Employees have unlimited access to their training games and can play anytime and anywhere. Start your 1Huddle free trial today to unlock the rewards of an engaged workforce.
Sam Caucci, Founder & CEO at 1Huddle
Check out our plan that outlines a position that we at 1Huddle fight for everyday; for every worker.