Corporate Online Training: Affordable Employee Training in Hard Times

Due to the recession and budget-tightening measures, many companies are cutting back on training programs. Regardless of the economic times, employees still need to be trained. And, as a recent study points out, many of today’s new hires lack "crucial basic and applied skills."

So in preparing to write this Insight, I thought about this recently reported study, "The Ill-Prepared U.S. Workforce: Exploring the Challenges of Employer-Provided Workforce Readiness Training," as reported by The Conference Board on July 14, 2009.

Granted, it’s a major challenge that businesses today face. While many U.S. employers are struggling with an ill-prepared workforce, they are also faced with re-evaluating business expenditures, budgets and other priorities, including their people.

To the rescue! Corporate online training: This alternative training environment solution works very well, during good and bad times. I find that this type of e-learning instruction is a flexible and cost-effective answer to meeting organizational training needs.

And, no doubt, as ‘C Suite’ decision-makers today look at the bottom line and note that a company’s training program isn’t flexible and cost effective; then they are not going to think there is a return on their investment.

In addition to realizing cost-effectiveness benefits, there are other strategic reasons for re-evaluating training methods during tumultuous economic times. For one, and especially in these times, a business must find ways to retain its best and brightest talent. Because talented achievers are normally highly motivated to continue learning and growing—training and development also serves as a strategic retention tool for business.

And not only does training help a business retain its most talented employees; it further supports the growth of that organization so it can keep pace with or stay above the competition.

Some studies indicate that nearly one-third of corporate training used in the U.S. occurs online (via the World Wide Web or Internet). One research firm reported that U.S. companies spend $16 billion annually on corporate training and an estimated $3.5 to $5 million of that amount is spent on online training.

Here are a few examples of technology-based, e-learning approaches that most organizations can use and benefit from:

• Online courses
• Webinars
• Podcasts

For obvious reasons, then, e-learning methods are more cost-effective than formal in-person training, especially for those organizations with a scattered workforce. So corporate online training can be used both domestically and internationally.

When compared to using other training environments, organizations that use corporate online training programs will significantly reduce expenses in affected areas such as the following:

• Travel and transportation
• Lodging
• Meals
• Training facilities
• Materials (printing costs, etc.)
• Loss of productivity (while employees are traveling, etc.)

Corporate online training has other built-in, time-saving considerations. For example, employees can access online training 24/7. Or a business can offer online training over lunch times or at the end of the business day, which allows a business to minimize losses from that ever-so-important business need, which is employee productivity.

Studies show that many employers struggle with an ill-prepared workforce. Online training helps employers stay competitive.