How To Survive By Training
By Martin Conboy
To cope with an ever-changing market and technological landscape, organisations need to invest in skills development and learning programs to ensure they remain competitive and are capable of adapting to the future.
Outsourcing the development and delivery of these initiatives means costs can be kept to a minimum.
Lets agree at the onset that training is an integral part of any organisation; it equips the personnel with the necessary skills required to perform their work. However not every organisation invests in training for their employees and most businesses consider training as an operating expense when it is actually an investment.
There are plenty of reasons to invest in training, like; improving quality, better productivity, amplified motivation it also helps to engender loyalty. Training helps in building capacity within an organisation, and investing in people is vital.
According to HR Magazine, companies that invest in $1,500 or more per employee per year on training average 24 percent higher profit margins than companies that don’t.
Training delivery often requires specialised knowledge and sophisticated technology platforms that must be regularly updated. This makes it an ideal function for outsourcing.
Existing employees need to acquire new skills and abilities to cope with the challenges wrought by digital disruption. Yet the knowledge they have about the company, its value proposition and its products needs to be transferred to the new generations entering the workforce.
Here is a very telling statistic, according to HR Magazine, companies that invest in $1,500 or more per employee per year on training average 24 percent higher profit margins than companies that don’t . Analysis from a study conducted by Accenture, showed that training has measurable effects not only on employee performance, but also on recruitment, retention, chargeability, and bill rates .
Though the benefits of employee training are clearly proven and documented, the ability and willingness of organisations to invest is not always front of mind.
Depending on the skills required, training can be expensive to implement and deliver effectively. In terms of soft skills clear ROI can be difficult to calculate. After all how does one measure outcomes if ‘soft skills’ is the input? That’s a debate for another day, but as a quick example, agent soft skills in a call centre can have a very real impact on the outcome or customer experience.
Training delivery often requires specialised knowledge and sophisticated technology platforms that must be regularly updated. This makes it an ideal function for outsourcing. A company may require multiple skill sets from a range of disciplines. The skills required in certain areas of the business may be core competencies, but the ability to train people in those areas is not.
Outsourced training allows greater flexibility by offering training precisely when and where it’s needed. Organisations that need employees to stay current with regulatory and compliance issues, technology trends and innovative techniques, will be served better by trainers with specialised knowledge who work with a range of organisations, institutions and industries.
“Our experience shows that organisations can save up to 30% on training costs”, says Vicki Kossoff, director at The Learning Factor . “The most strategic way to source the best training talent at the best possible price is to outsource. Instantly you have a pool of trainers and facilitators, who are industry experts in their field. This commercial experience brings training to life”.
To outsource your training effectively and ensure you receive the cost benefits, you need to understand your current and future requirements and how they align with the objectives and goals of the business. Like any process that is to outsourced it must be documented and the outcomes required are fully articulated.
Training that focuses on specific knowledge about the company and its products, may be best handled internally. Particularly as it may require the involvement of experience and committed staff to share their knowledge and experience to newer members of the workforce.
But for anything else outsourcing offers a range of benefits and opportunities for organisations that want to stay competitive.
July 28, 2015