Your budget for the next year is set and one of the casualties is learning and development; meanwhile your employees are asking what training is available in the coming year. Believe it or not, the two are not mutually exclusive and a reduced L&D budget may actually be the perfect opportunity to ensure you are maximising the return on training investment as well simultaneously meeting employee and business needs.
The following three areas hold the key to getting the most out of your L&D dollar:
- Policy, Process & Structure
A clearly defined policy, process and structure will assist you to maximise the benefits of the learning and development activities you invest in. Key areas to address are:
- Ensuring alignment between individual and business objectives i.e. rigorous analysis of skills and/ or training needs versus your business strategy;
- Actively evaluating the effectiveness of learning and development activities by reviewing their application in the workplace;
- Reviewing supplier contracts with any external providers. This may involve negotiating discounts or consolidating suppliers;
- Maximising internal organisation of training requirements to leverage economies of scale. This may have the added benefit of bringing together employees from different parts of the business and be a positive influence on internal culture and relationships.
- Ensuring a clear policy is in place detailing eligibility requirements, approval processes and retention clauses such as co-contributions, claw backs etc.
- Select Effective Learning and Development Options
When seeking to reduce costs, the obvious first step is to reduce the use of external providers, but that doesn’t necessarily mean you need to reduce your commitment to learning and development. The following options, if managed properly, may even result in a more comprehensive program that delivers more bang for your buck.
Some key inexpensive options are summarised below with benefits and things to consider:
| L&D Options | Benefits | Considerations |
| On-the-Job Training | · Fit for purpose
· Information tailored to individual |
· Manage delivery – who and what?
· Have systems to minimise the perpetuation of “bad habits” · Ensure adequate time scheduled for trainee and trainer |
| Internal Training Sessions | · Development of presentations skills
· Fit for purpose · Knowledge sharing |
· Missed opportunities for networking
· Monitor content to ensure quality and currency |
| Embedded Knowledge Experts | · Limit L&D outlay to key personnel
· Development of specialised knowledge and skills |
· Structures in place to ensure retention of knowledge/ expertise |
| On-line learning | · Flexibility of timing and location of L&D activity
· Reduced non-productive time |
· Compensate for limited interaction with other participants
· Ensure strategic alignment of learning |
| Mentoring | · Knowledge transfer and retention
· Enable talent development |
· Application of appropriate selection criteria for participants |
| Higher duties / Secondment | · Increased employee engagement through career development
· Supports succession planning |
· Ensure management of employee expectations |
| Trainees and Apprentices | · Mix of formal and on-the-job training
· Supports succession planning · Subsidised employment costs |
· Ensure a retention strategy is in place post-qualification
· Ensure the allocation of appropriate resources (including supervisory requirements) throughout training |
- Maximising Available Financial Support
Depending on individual circumstances, businesses and/ or individuals may qualify for either State or Federal Government incentives to supplement investment in apprenticeships, traineeships and training/ career development initiatives. In some cases incentives are available from both levels of Government and may take the form of payments, allowances, reduced wage rates or taxation concessions.
Actively reviewing and managing learning and development within your business to maximise your return on investment has the potential to reap many benefits, including:
- reduced costs;
- career development;
- knowledge retention; and
- fit for purpose programs and structures.
But perhaps most importantly, an effective learning and development function will ensure that you have capable and engaged employees, best placed to drive the future success of your business.
Author: WCA – Warner Consulting Australia Pty Ltd, Alliance Advisor with ATL Network