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How to get the management to approve more training funds? Follow the tips below.
What should you consider? People who make budget decisions are interested in data. They want to know what the benefits will be for the organization and whether the investment will pay off.
What information to provide them?
• Percentage of new employees in the last year/3 years, costs for hiring a new employee, potential savings.
Hiring new employees is a much more expensive and time-consuming process than training current ones. According to statistics, the average loss of a current employee is about 20-22% of his salary. Some employees can cost 50, 150 and even 200%. These are significant amounts. How to deal with the problem? Review the number of employees you have lost in the last year/last 3 years. What percentage are they of the total?
Calculate the cost of hiring new employees and see what the total cost is. Present the percentages and costs compared to the potential costs your training will save.
• Key Performance Indicators (KPIs)/Past Results.
We hope you follow the results of your current training and can demonstrate improvements in employee performance. The best indicator of future success is past results. What to do? Collect KPIs and look at trends. For example, did sales increase after employees received sales training? By how much? These numbers will help you prove the effectiveness and meaning of the training. Present your KPIs as graphs/tables to make them easier to understand and remember.
• How much does the competition spend on training?
If your main competitors are spending more on training, sharing this fact with management may suggest that it is and your company should take the same step.
Summarize the main advantages of staff training
Remind management of the benefits of staff training:
• Employee satisfaction.
• Less turnover of new employees.
• Better performance.
• Longer lasting knowledge.