Building a business case for training?
When you are building the business case for employee training it can sometimes be difficult to convince management teams of the need and benefits to the business. However it’s just like any business case, we need to persuade others through demonstrating the benefits and telling them what’s in it for the business.
Here are our ideas for those of you who may have to come up with your business case.
1. What impact will training have on Business Performance?
Research suggests when Performance Management training programmes are effective, employee productivity increases.
In your business case describe what might that productivity result in.
Could it be an increase in revenues for your business.
- More orders?
- More Cross and Up-Selling?
- More orders from existing customers?
- More satisfied customers who turn into loyal customers and order more?
Could it result in cost reductions?
- Will you able to more with less?
- What about reductions in wasted time and materials?
- Maintenance costs of machinery and equipment?
Will it allow you to avoid potential costs?
- Employment tribunals are VERY expensive in fines
- And in time to gather documentation for lawyers
To make your case credible in the eyes of managers you should highlight areas in your business where employee performance has improved due partly to training. You may have to refer to measurements that demonstrate your business case for further investment.
We suggest you focus your business case on areas to support the business’ objectives.
This way you will steer your training plans towards the areas of greatest benefit.
2. Will training and development impact staff retention?
Training has been shown to increase staff retention.
People want to work for managers and companies who are investing in their development.
This in turn will save you money.
- How much does it cost you to hire an individual contributor?
- How much for a manager?
- Add up the cost of time spent hiring,
- Interviewing , Managing paperwork, job ads and agency fees
We think it’s numbered in the thousands of pounds … What do you think?
- What’s the cost to the business of hiring someone who does not fit?
- Has that happened? (If so try our interviewing training and coaching)
- Reducing recruitment costs by internal promotion of skilled staff
- What does Absenteeism cost?
- Would better managers reduce or deal with that?
Your business case could rightly argue that instead of paying recruitment fees, the business would be better served by investing in training. Invest in their development and the business will receive a return on that investment many times over. In some companies, training programs have reduced staff turnover by 70 per cent. Pick a more conservative number and see what the benfits are to your business. Put that in your business case.
3. Improved Customer Satisfaction, Employee Satisfaction and Productivity?
Training can increase the quality and flexibility of a businesss services by fostering:
- Accuracy and efficiency
- Good work safety practises
- Great customer service.
What does your business lose if it loses a customer?
Lots of businesses work out the lifetime value of a client?
Consisting of an initial purchase , repeat purchases and annual orders.
What’s your businesses’ lifetime value figure?
4. Training to encourage new ideas and change to remain competitive
Businesses must continually change their work practises and infrastructure to stay competitive in a global market. As our economy becomes progressively service orientated, we would suggest that it is the development of people that is providing successful businesses with long-term sustainable success.
Training staff to manage the implementation of business strategies, improvements to procedures and customer service policies can also act as a benchmark for future recruitment and quality assurance practises.
As well as impacting on business profit margins, training can improve:
- Staff morale
- Employee satisfaction
- Soft skills’ such as inter-staff communication
- Time management
- Customer satisfaction.
We hope that this has given you some ideas on how to build a business case for training people.
If you’d like some ideas on how to write your business case for any Rainmaker-Coaching training then let us know. email@example.com