Training employees is a crucial investment for businesses, but determining the right amount to spend can be challenging. According to the Association for Talent Development's 2023 State of the Industry report, organizations spent an average of $1,220 per employee on training, slightly lower than the previous year.
However, some employees still view training as a reward rather than focusing on its impact on their performance. Similarly, some managers send their teams for training without evaluating the outcomes effectively.
For small businesses, planning employee development can be complex due to financial constraints and competition for talent. To address this, businesses can follow a structured approach to learning and development initiatives.
One effective strategy is to define learning objectives based on targeted outcomes for the organization. A four-quadrant model can help categorize goals into Values and Culture, Competitive Advantage, Operational Efficiency, and Technical Know-How, each requiring a different level of investment.
For technical skills, seeking external programs from subject matter experts can be beneficial. Companies in specialized industries like roofing or law firms often require specific training to meet safety or licensure requirements.
When it comes to skills driving competitive advantage, businesses should consider recruiting employees with the desired capabilities and providing in-house training to maintain a competitive edge. This approach ensures long-term investment protection.
Behavior-focused development planning should involve on-the-job activities to apply learning immediately. Operational efficiency can be enhanced through process documentation and in-the-moment education to improve client interactions and service delivery.
Businesses can explore grant opportunities for training in specific skills or industries, offered by state departments or professional associations. Additionally, leveraging existing vendor agreements, PEO providers, trade associations, and online platforms like LinkedIn Learning can provide cost-effective or free learning resources.
Ultimately, businesses should view learning and development as a comprehensive initiative rather than a one-time training event. By integrating ongoing development into daily operations, small businesses can foster continuous improvement in both their people and products or services.
