Make investments in human capital pay off
Ten ways to leverage your organizational development dollars
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Align learning objectives with the organization's recruitment and selection process. Companies that (1) have a keen awareness of their competency requirements, (2) develop behaviorally based competency profiles, and (3) hire individuals that already possess those critical competencies will narrow the competency gap. This will reduce training needs and training expense significantly.
Align learning initiatives with the organization's performance management system. Having a defined development plan for employees will provide focus and allow for better expense allocation. This will eliminate ad-hoc training decisions and ensure that training initiatives are prioritized based on employee needs.
Set clear course pre-requisites and entry requirements. Too often, individuals are sent to training programs where they simply do not belong. Make sure the organization defines which positions should attend, the tenure in that position, and a process for approving exceptions
Set high standards for participants. Make sure you are getting the full value for your training investment. Insist that participants not “just show up” but actually perform. A major telecommunication company requires that participants must attend 90% of a training session or they do not receive credit. Also, keep laptops and cell phones out of the training session unless they are needed as part of the learning
Place greater accountability on the first line manager to be a coach. Many organizations insist that their mangers have the capabilities to coach others before they can enter the management ranks. While this may represent a significant cultural change, it can eliminate unnecessary training expenses for certain skills training
Take advantage of economies of scale. Consider business simulations and other experiential learning programs that reduce the price per participant as the number of participants grows. This is the most economical way to align a large and varied workforce.
Schedule training strategically. Know your company’s business cycles and schedule accordingly. Cancellations can be expensive. For example, training scheduled at or close to the end of a quarter will be a problem for sales departments.
Offer value back to training providers in exchange for price considerations. Training vendors highly value references, clients who are willing to participate in case studies, or clients willing to be subjects for white papers. Keep this in mind when negotiating price.
Stay current on techniques that work. Classroom training oriented towards traditional lecture is not effective for adult learning. Seek training partners who provide dynamic, interactive learning methods. While this may not immediately reduce costs, it will eliminate the need to spend additional resources on continual reinforcement, or repeating ineffective training initiatives.
Seek training providers who can provide broad geographic and language coverage. Often times, when evaluating training providers, companies focus too much on the price of the core training and not on the additional/related expenses they must incur. For example, training providers that can draw upon locally based facilitators will reduce travel expenses.
Based on an article by Jay Jacobson president of Celemi, Inc. in Training Magazine 2008 – 02 – 08.