Corporate L&D departments have faced an increased pressure on cost cutting in recent years. Their managers had to learn how to work with limited budgets while keeping employee training still effective. However, even if the economic situation improves in the years to come, they shouldn't automatically expect more money. The hard bargaining about the legitimacy of investing in employee training is here to stay. If a L&D manager wants to justify his request on the size of the L&D budget, he must demonstrate what real change employee training will provide. A few tips on how to do it were published on Training Zone.
Connect learning to better performance
L&D manages must thoroughly understand how improved employee performance is improved by the process of education, the benefits it brings to the company, and clearly communicate it to the company's top management. It is important the content of the employee training actively improves performance. Each training should have a goal based on of performance improvement in a specific area. Managers should focus not only on traditional classroom training led by instructors or e-learning, but also on informal learning and social networks. Social networks allow employees to easily, quickly and inexpensively learn from each other.
Connect learning to talent management
Every larger organization should have its own management team responsible for employee training, with a set of proven best practices in employee training and development as well as quality standards for creating new educational activities. All this should be linked to a chosen technology for reporting results of employees in individual positions and a further management of their careers.
Concentrate on the business benefits of employee training, not only the ROI
Proving the return on investment in education is very difficult and often leads to frustration. Instead of calculating ROI, try to focus on the clear business benefits of effective employee training. Get inspired by marketing which, like HR, estimates the amount of its budget based on expected results of its activities. Learn from how marketers advocate for the business benefits of their solutions. Their arguments are often based on the results of control groups studies and you can use the the same techniques.
Carry out regular interviews with participants in various types of training three to six months after the end of the training programs. Ask them about the business benefits they have gained from the newly applied knowledge and skills. That will help you find out what works and what does not. Then you will be able to give clear examples to your superiors. The more you talk about the benefits of employee training for the company, the more people will hear you and want to hear you again in the future.
How do you justify your L&D budget requests in your company?
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