The issue of employee training is a contentious one, especially when it comes to budgeting. How much is too much in terms of allocating funds to training staff? Is it an investment or a redundant expense? It seems that business owners around the world are divided on the issue.
Stresses and Concerns.
There are a number of factors that can influence how much of a company’s budget is allocated to corporate training. Amongst the top concerns is the notion that employees will receive corporate training and abruptly leave the company for greener pastures, thus leaving no return on the investment. Other concerns are related to the volatility of staff.
These concerns should never be used to rationalize the lack of a training program. Instead, incentives should be utilized to make training more attractive to employees and to retain staff. Training is an integral part of corporate growth and should never be undercut due to primal fears.
Looking at the Numbers.
It can be informative to inspect statistics to study the significance of employee training. According to The Conference Board of Canada, Canadian businesses are spending an average of $850 per annum per employee on training. This amount is considered to be lower than most countries in the industrialized world, including the United States.
It turns out that Canadians are spending about 17% less on training than their counterparts were a decade ago. This may occur because employers are succumbing more to the aforementioned stresses and concerns and less to the needs and requirements of a thriving business.
The Importance of Training.
Despite employers spending less money on training and development, most agree that it is still of considerable importance. In fact, 86% of small business owners in Canada view training as highly important. This suggests a discrepancy in the desires and in the output of today’s companies. If training is considered to be so highly important, why don’t more businesses provide financing for it?
The answer to this is likely a combination of the pervasive stresses and concerns and the rising costs of training. Hiring a training company can be greatly expensive and uncertain, as there is no reliable way to determine results. Nevertheless, employee training remains a core focus of most businesses and an elusive prospect in many more.
Sources:
Conference Board: http://www.newswire.ca/en/releases/archive/May2007/01/c3343.html
Ipsos-Reid: http://www.microsoft.com/canada/media/releases/2006_09_12.mspx
Budgeting for Employee Training - To learn more about this author, visit Louis Trahan's Website.
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Louis Trahan
(Visit Louis's Website)
Having traveled extensively to over 27
countries, Louis has liaised and conducted
training for business people worldwide. A
prolific public speaker and successful
trainer Louis was a panelist at the
International Chamber of Commerce's World
Congress held in Quebec City .
Always seeking opportunities and creative
solutions to help his fellow
entrepreneurs, Louis launched Last Minute
Training (ww
w.lastminutetraining.ca), one of the
first companies to offer top quality
training at discounted prices. This new
venture connects entrepreneurs, human
resource managers and certified
professionals with highly sought after
professional development training for a
fraction of the cost, while helping
training vendors increase their bottom
line.
Last Minute Training's extensive list of
computer and corporate training makes it
easy to find the training you need at
prices you can afford. Check out their exce
l training in Toronto to see what we
mean!
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