Budgeting for an Effective Training Programme
Achieve the most effective online training programme for your business through the establishment of clear objectives and efficient allocation of budgets. Having a clear idea of what it costs to create top-quality staff training while sticking to budgets is key.
The advantage of online training
Unsurprisingly, in-person training costs more than online as it involves expensive items such as venues, travel, accommodation, food & drink, and usually printed training material. Depending on the type of skills being taught, blended learning might be necessary.
Regardless, an online training programme normally requires higher upfront costs and extensive planning because a learning management system and training content will need to be created. For employees that train at home, suitable connectivity and devices will be required. Certain e-learning providers such as FUEL, have shared device solutions available which consist of dedicated tablets or training kiosks situated at designated areas on site.
Online training has grown at a rapid rate over the last decade not only because of improvements in technology, connectivity, and the rise of remote working but also because of cost benefits.
Setting objectives
Matching training objectives to business goals is key to creating accurate budgets for your training initiatives. It allows for improved prioritisation and road mapping.
Examples of objectives might be increasing sales revenues or growing repeat business. Training curricula then needs to reflect those focus areas.
Costs
Online training providers should be able to provide you with costs related to different types of delivery and content production. FUEL does in-depth consultations with potential clients to offer the most suitable solutions to match operations and budgets. Training delivery solutions vary widely in cost and depend on a variety of factors. Content creation costs depend on the production methodologies used, the cost of which varies greatly.
Examining what other businesses have spent on their training programmes can provide a reliable indicator of the amount of budget necessary for allocation. You can also work off past training initiatives to see how money was spent and where it was effective to inform a current strategy.
Metrics
Training budgets can be broken down into different metrics for more clarity. One to consider is the training budget on a per-employee basis. Budgeting from this standpoint depends on the size of the company and the training needs of the employees.
Another metric is to apply training budgets per salary. This approach takes the total budget for an annual salary and multiplies it by one to three percent depending on company size, to come up with an ideal training budget.
Training budgets can also be based on a revenue percentage. As a norm, corporations will spend up to two percent of their annual revenue on staff training.
Staff training, be it online, blended or in-person, is aimed at achieving higher profits through increased efficiency and productivity and is worth proper investment. With appropriate planning and partnering with the right e-learning service provider, quality staff training is available to every business.
