Making Training Pay

Does training add value? If you ask any HR department all training function the answer would certainly be yes. What’s the same question to the CP or CF any answer would be completely different. So who is correct? The answer is probably the CEO CFO, as training functions and HR departments are very unlikely to be able to produce any concrete results that are training as significant value to the bottom line.

Does it matter? In the world where we are increasingly looking for efficiencies in every area of the business that’s either public or private sector any answer must be yes it does matter. To examine this issue detail we must first understand what type of training his predominant in the organisation. Most organisations Focus their training effort competency based training. This can account for almost 99% training delivered in the organisation.

Competency based training is important although it is not really valued. Competent staff fulfils three very important parts hosting Organisations requirements. These are:

• Safety & legal
• Conformance to standards
• Quality

Most training functions funded to ensure that this happens. So let’s have a look where immediate efficiency improvements can be made. The definition organisational competencies are, that they are a key observable behaviour. Therefore the line manager needs can only do identifying training, this is the line managers responsibility. What happens after training, we tend to call this evaluation is also a responsibility of the line manager. Using a scoring system mentioned in a previous article we are able to accurately identify employees that require training and at the next performance appraisal measure numerically the improvement. There is absolutely no need for the training function to do any training needs analysis.

Creating value from training is another matter. There are fewer than14 courses, which add real measurable financial value. With these courses the Training function needs to do predictive training needs analysis and in advance training provide me evidence, which is always financial of the benefit to the organisation. Some examples of these courses are as follows:

•  Train the trainer – providing it’s not someone in the Training function
•  Renegotiating existing contracts
•  Delivering agreed budgets, under budget
•  Enforcing the company regulations to ensure the work force starting and finishing time is strictly adhered to
•  Delivering approved projects ahead of time under Budget
• Conducting Post sickness interviews
• New business process reengineering
• Workforce planning, using predictive forecasting

You will note that none of the above these particularly popular but each has a massive potential financial return on their investment.

Readers may contact us to receive a free Training process wall chart. If you want to understand the way competencies are analysed a video is available for you to see on request.

Want to get the best from your training investment? – contact us now!

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