How to Get a Return on Your Training Budget
Would you like to see company productivity increase by 17% and profitability by 21%? According to Gallup global research*, these increases are the result of training engaged employees. Equally, more recent insight** reveals that effective leadership training can elevate manager and team engagement by over 20%. Yet, we’ve all been on training courses that make no difference to performance. So, how can you get a return on your training budget? Is Training a Cost or an Investment? When budgets are tight, training is an outgoing that many businesses feel they can cut. Is this a wise move or false economy? The answer depends on the training. While the majority of employees value opportunities to learn and develop skills, many also find training to be ineffective. If you are paying for a trainer or event and giving employees time off work and it doesn’t lead to lasting change, it’s a cost. However, if the training is sufficiently meaningful and informative to drive fresh thinking and new approaches, it becomes an investment. In short, you get a return on your training budget by providing the right content, to the right people, at the right time. In my experience, getting a return on your training budget depends on five factors: Let me explain these in greater depth. Training Objectives: What Difference Do You Want to See? I’m often contacted by companies that want training, yet they don’t know what they need. So, the first question I ask is, “What difference do you want to see?”. The first step to achieving a return on investment is identifying the objectives. What gaps in knowledge or performance have been raised in employee reviews, customer feedback and other metrics? Where can training help build confidence and competence in your team? What impact would a successful training course or programme have? When you have clear objectives in mind, I suggest sharing these with the team. Let them know what you want to achieve, ideally explaining the benefits to them of this outcome. Then, ask them what would need to be covered in the training for this to be realised. Who Will Benefit From the Training? Every employee may need or want training, but it is unlikely that they’ll all benefit from the same course or programme. When you try to tick the learning and development box with a one-day event for all, it’s difficult for the trainer to tailor the content. We all respond better to training that is directly relevant and meaningful to us in our role. We can engage when it draws on real scenarios and is at the appropriate level for our knowledge and experience. This connection with the content is the point when change happens. It’s when we understand how we can adopt a different approach to improve things. So, who will benefit most from the training? What would be appropriate for other departments, roles or individuals? How to Select the Right Trainer From the first two points, I hope that you can start to see the value of tailored content over an off-the-shelf solution. The cost of a generic course is likely to be cheaper, but when we focus on return on investment, customised content offers the best value. In your communication with the trainer, inform them of your objectives and tell them about the delegates. Then, ask what they can offer. Specifically enquire about how their course can meet your objectives. Also, request information on how they can integrate real-life examples and practical tips that can be implemented in your workplace. You could even ask if they use any ways to measure the impact of the training. In conversation, you’ll get a feel for who is best able to align with your goals. The Benefit of Effective Pre-training Communication I’ve already mentioned talking to your team about your objectives and how training can meet them. I believe the more you communicate with delegates and trainers in advance of the training, the easier it is to meet expectations. As a delegate, have you turned up to a training event when you have nothing but the basic outline of the course? You aren’t sure why you are there, and you are thinking about all the other things that you need to get done. This doesn’t feel like a good use of your time. As a trainer, have you arrived to find that the room, facilities or delegates have changed last minute? You’re having to think on your feet and adapt at speed. Both scenarios put people on the back foot. As a result, their mindset isn’t where it should be and it takes longer to build engagement. However, with effective communication, everyone can be better prepared and the training time can be used to best effect. Training is Not Enough As a professional trainer, you may be surprised to hear me say that training is not enough. However, we’ve all been on courses that have informed and inspired us. We get it, we see the changes that can be made, and we’re on board to take action. However, we return to work and it’s full on. There is no space in our day, in the diary or in our heads to implement what we learned. In a few days, we’re back to doing what we’ve always done. Unfortunately, at this point, the benefits of the training are lost. So, to achieve the objectives and realise lasting change, you need to allocate time to both training and follow-up activities. Your employees need the opportunity to put the learning into practice. When they do, find out if they need additional resources or support to drive positive change. This post-training input is an overlooked, yet essential, aspect in gaining a return on your investment. Training Satisfaction Ratings Training isn’t a cost when it delivers a return. So, rather than cutting training budgets, I want to promote the case for upskilling your managers and team with learning and development opportunities. It’s time to follow my advice and
