Training has become an exceptional way to design and implement profitable solutions for business challenges.
Here are some examples of how training solutions make companies more profitable:
- By having greater knowledge of the product or service, the commercial team sells more.
- By being more familiar with new legislation (or changes to the law), companies comply with legal requirements and avoid risks, sanctions, and fines.
- By ensuring that people follow or learn new processes in the company, fewer jobs will have to be redone and fewer resources will be wasted./span>
- By having bosses who treat their employees better, companies will have lower turnover costs.
- By having employees who say the right words at the right time when talking to clients, the repurchase rate will rise.
- By increasing the amount and quality of work per person and gearing it at the right objectives, work productivity rises.
Once the investment in training and its benefit are quantified, profitability will need to be calculated.
Investment in training: The cost of training each person times the number of people.
Measuring the benefit: It’s necessary to measure how what is learned applies to the reality of daily work and then quantify the training’s impact on the business performance indicators. For example:
- How much do sales go up?
- How many sanctions or fines no longer need to be paid?
- How less often does work have to be redone? How much waste is avoided?
- How much does turnover decrease?
- How much does the repurchase rate increase?
- How much does work productivity go up?
Return on investment: Finally, the profitability of the training will be calculated by comparing the benefit to the investment.
It’s worth highlighting that benefits can be calculated more directly when the training is geared at improving specific jobs in the work environment. Or, this is also true when it’s geared at implementing something new, for example, policies, requirements, information about new products, etc. That’s to say, benefits are clearer when people receive new instructions or knowledge about their job and practice as necessary in order to apply them.
The training we offer the company’s employees has the mission of becoming one of our primary means for producing high rates of profitability for the organization.
The process of measuring the training’s profitability provides additional benefits that go beyond a return percentage, as it helps us design training programs in an organized and planned fashion.
About the author:
René Mena Seifert is the creator, founder, and CEO of IDESAA, TRUE e-Learning, and Foro Pro-Talento Empresarial. He specializes in the design and implementation of business solutions based on training and talent development projects that are customized for companies.
