November 15, 2021
5 Proven Ways to Reduce Employee Training Costs
Cutting costs is a major concern for many businesses. Especially with the recent covid outbreak, many companies are forced to make tough budgetary decisions every other day. Unfortunately, when it comes to HRM, training programs take up a high cost. This may upscale depending on the size of your company and the quality of employees and recruitment practices. However, reducing training expenses can save up a considerable sum for your business and optimize your firm’s financial resources, enabling you to make other feasible investment choices. Here are five proven ways you can consider to reduce employee training costs.
Choose eLearning Where Possible
The advancement of technology has spanned excessively to the manpower market, where employees nowadays have many online e-learning platforms to enrich their competencies.
While some of them are freeware, some can be hosted by your company at a significantly small cost compared to that you’ll incur when conducting training and development programs.
Moreover, as e-learning gives employees the flexibility to learn during their own convenient times, they tend to be more attentive to these training approaches as well. So it’s an effective training solution for both reducing costs and improving employee performance as expected.
This method is proven most suitable to facilitate simple training where extra or professional support is not required for employees.
Conduct More Virtual Training
You can conduct training programs through methods like webinars which significantly reduces the average training cost per employee. Virtual training removes the cost associated with a training venue, materials, travel and catering.
Your training program can also replicate group works through webinars, so it’s more interactive and doesn’t lack anything from an in-house training session. Above all, even if an employee couldn’t make it to the webinar, they can watch the recording when they have time.
Use Internal Expertise
Training professionals and consultants are expensive. While they can do a convincing job at it, it comes with two risks; first is that it’s costly and second is that sourcing an external professional to handle your company training has a high risk of exposing company information, the quality of your employees, and any other competitive details.
Instead, identifying professionals within the organization who have the capability, expertise and knowledge to conduct training programs is much more value-adding and cost-effective. It is risk-free as company details stay within the organization, are cost-effective, and is a great way to motivate existing employees. All you need to do is empower them to share their expertise and give them the required tools.
Hire Through Manpower Suppliers
One of the main advantages of hiring through renowned labour supply companies is its proven, cost-effective nature for HRM in general.
Firstly, manpower suppliers will hire you with the best potential talent from their portfolio. This significantly eliminates the risk of having to provide additional training to enrich your new recruits. That’s a significant cost-saving right there at the point of recruitment itself.
Secondly, depending on your workforce supplier, some companies provide employee support in the form of training and development programs personalized to your goals. So even if an urgent need arises to train staff that you recruited through them, they will handle such requirements without a hustle as needed.
Thirdly, as you might know, one of the main costs of training is hiring professionals to conduct them. But when you hire through manpower supply companies, they will source these professionals on your behalf with no additional cost and will ensure confidentiality.
Provide Fewer In-House Training Sessions
Housing training sessions are expensive. A common mistake many companies make is hosting training every week, bi-weekly or monthly. While training sessions are essential, there are certain instances where you would not require in-house training all the time to make employees aware or knowledgeable about something. Or sometimes you may be hosting training sessions way before it’s necessary for employees.
So try to restructure the training sessions to a handful and only host when they are incredibly vital, by consistently spreading them throughout the year.
When there are instances where you need to enrich employees or make them aware of new initiatives and how to work around them, opt for printed or web-based material that employees can access at any time. That way, only those who have questions can reach out for help, and the rest can refer to these materials while working around new protocols.
Apart from being cost-effective, this method is also proven more effective in delivering performance and expected results as it doesn’t burn out employees with continuous training.