As the new year begins, many organizations are finalizing their budgets for the next year. One of the most important parts of any budget is the allocation of funds for employee training and development.
Upskilling and training have been shown to benefit employees and businesses, but slower growth is frequently met with tighter budgets. So, as a manager or leader within your organization, you will likely be tasked with defending your training budget in front of upper management and stakeholders.
But why invest in employee training and development in the first place?
Training and development for employees can help them become more effective at their jobs and close performance gaps caused by a lack of knowledge or skills.
By helping to identify high-performing employees and then assisting those employees in developing the knowledge and skills they need to advance into more senior roles, employee training and development can also assist with succession planning.
Many employees cite a lack of development opportunities at their current job as a primary reason for leaving, various researches have also proved that training can have an impact on employees’ decision to stay for longer.
So, employee training and development can be an effective recruiting and retention tool.
Finally, some types of employee training, like compliance training or safety training, can help businesses avoid lawsuits, workplace injuries, and other negative outcomes.
L&D teams now deal with training resources more strategically than ever before. In order to make the strongest case possible, it is crucial that you establish your priorities, choose the right priorities when allocating funds for training in order to secure the resources you require.
When deciding where to allocate funds, it is important to first identify the specific goals and objectives of your organization.
Many learning areas are covered by the training budget like software applications, executive development, professional, compliance, sales, customer service, interpersonal, managerial, and supervisory skills.
Areas to focus on during training budget
But first, identify what areas does the company need to improve in order to meet its overall goals? Which employees or teams will need the most support to do so? Identifying these areas of need can help you determine where to focus your training efforts.
Once you have identified the areas of need, it is important to research and select training programs that are directly relevant to these areas. For example, if your organization is working to improve its digital marketing efforts, you might consider investing in training for social media marketing or search engine optimization.
This will ensure that the funds allocated for training are being used in the most effective way possible to support the overall goals of the organization.
Another important consideration when allocating training funds is the return on investment (ROI) of the training programs.
Evaluate the cost of trainer’s salary and time, consultant fees, materials, expenses (travel, meals, and lodging), facility and equipment rental, trainee salary and time, and any lost productivity resulting from participants’ absence from their jobs.
Then look at the benefit of the program in terms of the impact that it will have on the employees who participate and the organization as a whole. It’s also important to consider how long it will take to see the returns from the investment.
The benefits provided by the various components of training can be in the form of more worker autonomy, improved accuracy, fewer accidents, increased productivity, improved attitudes, and efficiency from new skills
In addition to ROI, it’s also important to take into account that some training and development is required by law. Many industries require certain certifications to be held by employees. and industry standards to be met by the company. It is important to stay updated on those regulations and comply with them.
In summary, when defending your training budget, it is important to choose the right priorities. If you haven’t had a training budget discussion yet, set some time aside and identify specific areas of need within your organization, research and select relevant training programs, and consider the ROI of each program.
It can be hard to prioritize your training needs, but we can help. Contact our global L&D consulting to identify learning needs in your company and set your priorities right.
You can give us a call or reach out via WhatsApp on +977-9802848899 or drop a mail at firstname.lastname@example.org.