Fundamentally, if you are not realizing your training ROI in the best of times, why keep a budget in the not-so-good times?
One reason why training budgets get cut so quickly during economic downturns is that organizations don’t see the value.
Suppliers don’t do their job properly; new skills aren’t embedded properly; management support shifts on to the next issue; and so on.
In 2016, we saw a $360bn spend on training with a bias still towards facilitated workshops / the classroom.
Of this sizeable budget, 61% ($220bn) of this is spent on ‘internal resources’: doing it all yourself. There can be separate discussions about how to organize your learning & development (Eskil has a team of Concierges who focus on taking people through the full process from Training Needs Analysis and original budget sign-off, all the way through to supporting them back in the workplace armed with new knowledge).
The plain fact is that a skilled workforce derives a return on investment.
Realizing Your Training ROI
- Retains competitive advantage;
- Secure new customers (new business);
- Delight current customers (repeat business);
- Introduce efficiencies to the business (improved profitability);
- Improve company morale;
- Motivated employees seek out opportunities to support the development of your business; and
- Training existing employees is cheaper than recruiting new staff with the skills you need
Your people help you to achieve corporate objectives – business leaders are responsible for equipping them with the right skills.
Simply, if you spend money on workshops and training and you do not value it… save your money! If you DO value your training budget, then here are a few ways to get the best out of it:
- Have senior sponsorship – we work at senior levels and tend to have senior stakeholders speaking briefly at key points. You can spot fully-engaged leadership as they attend a high-level version of the workshop and provide input / feedback which informs how to develop the workshop for their colleagues;
- Drill down – as we facilitate our sessions, our main assets are asking questions and actively listening. Admittedly, we focus on soft skill learning & development where ambiguity and human nature are heavily involved;
- Consolidate training – reduce the number of training suppliers in order to develop a higher standard of delivery;
- Pick the right people – not ‘everyone’ has to attend a workshop;
- Prepare your people – learning & development needs to be in context and, consequently, aligned to corporate strategy;
- Cultivate the learning mindset – for almost every one of our workshops, we invite learners to complete an Emotional Intelligence assessment. As a result, we begin the learning engagement sooner and also identify the psychology of each person in the room;
- The right material – make sure that the training provided is relevant to corporate objectives – don’t just provide training to satisfy a management KPI; and
- Follow-up – don’t just make people attend a workshop for a day rather use it as a foundation for ongoing development
The final aspect of realizing your ROI is to measure everything.
Some of our workshops can cost as much as $3,000 per learner consequently we have clear explanations of expenditure. If you are spending $30,000 on a 3-day workshop, how will you be realizing an ROI of 3-5:1? How will you see a return of $90,000 on a 3-day workshop?
Pay more, realize more
The key thing is this: the workshop is 10% of the learning & development with mentoring and in-work support making up the remainder.
With your (internal or external) L&D partner working with the learners, you should be looking to measure such metrics as:
- Increase in revenue;
- Improved efficiency driving greater profitability;
- Increased employee engagement; and
- Promotion of learners who attended
Focus the mind of your L&D partner – don’t let them come in, ‘train’, and walk away again – make them earn their money. Pay more and expect more.
Feel free to contact us to discuss your learning & development initiatives and one of our facilitators will speak with you about their own experiences and how they can support your corporate ambitions.