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Training – Risk vs. Reward

Guest post by: Louis Trahan

Article Overview: Hiring new employees is complex, as every employer knows. It is very uncommon to hire a candidate with the perfect combination of skill, know-how, mind-set, and education. In many cases, employers need to improvise or provide additional training to help incorporate new workers into the field. In other cases, employees wind up being indignant of lacking critical elements of employment. The fine line between providing training at a sensible rate and boosting the confidence of the employee can be tough to discern, but in the end it’s a meaningful investment.

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Training – Risk vs. Reward

Hiring new employees is complex, as every employer knows. It is very uncommon to hire a candidate with the perfect combination of skill, know-how, mind-set, and education. In many cases, employers need to improvise or provide additional training to help incorporate new workers into the field. In other cases, employees wind up being indignant of lacking critical elements of employment. The fine line between providing training at a sensible rate and boosting the confidence of the employee can be tough to discern, but in the end it's a meaningful investment.

Avoiding the Fear Quotient

Many companies avoid sending new hires for additional training for fear that the budding employees will take off with the training or won't pan out effectually as workers. This fear is often unsubstantiated, as many new employees often feel that they are "worth it" when exposed to training and doses of the owner's trust. Having the resolve to grant improvement to employees shows a lot of character and more employers would benefit from the higher morale associated with such attitudes.

Naturally, many employers are concerned about the cost of improving their workers. In the long run, though, one must ask which cost will be unremitting. While some training can be pricey, a lack of training and consistency among staff members can be most expensive. It is a matter of prioritizing expenses and thinking long-term.

Defining the Objective

In the end, it is up to the owner to define the objective here. If a lasting investment seems agreeable, it will likely be useful to take on the considered risk of training new employees. In the long run, most of these situations wind up paying substantial dividends for employers and for the company's bottom line. More skilled workers improve profit margins.

Some employers will likely yield to fear and doubt, however, and may lose workers to better businesses with more faith in their employees. Businesses that think long-term are the most successful in the market and turn the most significant profit. By thinking long-term with employees, employers can foster durable relationships that will benefit all parties involved.

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Home > Human-Resources > Louis Trahan > Training Risk vs Reward >
Article Tags: education, investment training, training rewards, training ROI

About the Author: Louis Trahan
RSS for Louis's articles - 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 (www.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 excel training in Toronto to see what we mean!

Click here to visit Louis's website
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7 words or less for Structogram 7 words or less for Structogram - Some "7 words or less" (more or less) for Structogram for your comments: Training to get your message across(6) Secrets to get your message across (6) Training so people will listen to you (7) Helping you get your message across (6) Training to learn to get your message across (8) Communications training for yourself and your team (7)
How to valuate a business How to valuate a business - Hi Garth - here is how we did it at Northern Crown Capital when I was helping them raise venture capital for Toronto-based entrepreneurs. Assume the start date is 2003 so 2008 projections are 5 years out: How Northern Crown Capital Valuates a Business 2008 Financial Projections Earnings Before Tax $5,865,000 Tax Rate 42% Taxes $2,463,300 Net Earnings $3,401,700 Amount Seeking to Raise Today $3,500,000 Discounted Value of Future Opportunity, 5 Years Out 2008 P/E Ratio 15 Value of Company in 2008 $51,025,500 Discount Rate Applied 30% Year 2008 $51,025,500 Year 2007 $35,717,850 Year 2006 $25,002,495 Year 2005 $17,501,747 Year 2004 $12,251,223 Value of Company at Investment in 2003 $12,251,223 Less: Investment Amount $3,500,000 Present Value $8,751,223 Discount for Risk & Private Company 40% Less: Discount for Risk & Private Company $3,500,489 Private Company Value $5,250,734 Present Value (What the Owner Keeps) $5,250,734 60.00% Financing (What the Investor Gets) $3,500,000 40.00% Total $8,750,734 100.00% I hope this helps!
Show the Benefits Show the Benefits - Offer a free test drive of the Product or Service with a Money Back Guarantee - Take the Risk out. This will help them make the decision but you have to work with them to realize it by explicitly state the benefits they are receiving.
Budget. Budget. - I believe the biggest barrier is related to budget. Training tends to be a normal practice for a big company. But I have to consider it seriously as an entrepreneur.
Marketing vs Web Optimizers vs Usability Marketing vs Web Optimizers vs Usability - Hi BigJim22, I must be honest - I haven't really read a lot of Seth's articles on web site strategies. What I have found though is that there always seems to be a three way conflict between marketing ideas, SEO strategies and usability issues when doing web development. The secret is to balance between the ideal situation for each of these. Since a website needs to be found, visited and acted upon we need a strong combination of marketing, SEO and usability to be successful. It's something we struggle with constantly at Last Minute Training and I'm sad to say - we still haven't found the right combination.


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