When companies want to train employees, they are usually faced with two options. The first option is to train them in-house. That is, to hand over training to the HR department or the Learning and Development department. The second, of course, is to outsource training to third parties and create a tailored curriculum that prioritizes the skills and knowledge that the firm wants its employees to learn.
On its face, it looks like in-house training may be a lot better financially. After all, you aren't paying third parties, and the people conducting the training are already employed by the company. But like with many things, it's important not to judge this book by its cover. In this article, we'll be going through why tailored training is financially better in the long run, what benefits a company might look to get from it, and even tips on how to choose the best third party trainers for your employees.
If a company wants to remain productive, it has to increase the capacity and quality of people that it employs. This could be done through increased recruitment, raising the standard of work, and training. Traditionally, the training of employees has been the road more traveled by companies looking to increase capacity and quality. And it's easy to see why. Recruitment drives can be very expensive, also time-consuming. Even after recruitment, recruits have to be trained, which means more money spent, and more time lost.
The question that remains is how do companies carry out this training? The first choice is to do everything in-house. Many companies falsely assume that they would be able to control the quality of training received, and it would also be cheaper in the long run. However, a close analysis shows that this is wrong.
When training is found in-house, employees often have to deal with impersonal learning tools and outdated systems. And the reason is simple; the firm isn't a training firm. This problem is even worse today when employees have access to platforms that offer a more customized and efficient experience than anything in-house training can provide. To address these issues, L&D must take a more flexible approach to training.
This is one benefit that is often overlooked when companies consider whether to go with tailored training or in-house training. But it shouldn't be. When training is outsourced to tailored training providers, it gives employees the chance to learn from people who come from different cultures with different values and may give them a new and informed perspective on their work. This gives them a varied base of skills that will help them become better employees with the ability to think outside the box. This, in turn, will increase the productivity of the company in the long run and makes a lot of financial sense.
The biggest argument against in-house training is that it's not efficient. The people conducting the training are often not the best at training, and since it isn't their regular jobs, they usually lack the skills to properly train employees. These trainers are usually full-time employers with their separate work responsibilities as well, so they won't be able to dedicate all their time to providing the best training. If you hire experts to create a tailored curriculum for training and to carry out that training, you would be giving experts that not only know what they are doing and are informed about the latest trends in whate skillset you want employees to acquire, they will also dedicate all their time to ensuring that employees experience high-quality training.
Since tailored training is a lot more efficient than in-house training, it provides better-trained employees who end up contributing significantly to the productivity of the company and ends up increasing profits. Products of in-house training end up being insufficiently trained as such cannot contribute as much to the company.
The modern industry is constantly evolving due to new trends, and companies that want to keep up and still provide value need to constantly train employees to acquire new skills and knowledge to use new tools. This training has to deal with new programs, frameworks and even technology that in-house officers may not have a lot of experience with. That's why it's important to contract training out to third parties to whom training is bread and butter. These third parties are better equipped to deal with these changing landscapes and will end up training employees better than any in-house program can.
Don't automatically choose the provider that costs less. That almost ensures that the quality won't be as good. But that doesn't mean you should go for the most expensive provider as well. Just choose one that has the right balance of quality and cost.
The third-party you're contracting training out to should be one with a lot of experience with several kinds of training so that you can build a relationship with them as you go along.
In the end, it's clear that tailored training makes more financial sense in the long run. While it might be cheaper right now to just have in-house officers to run training programs, it doesn't make financial sense in the long run. That's why tailored training is your best bet if you plan on making a financially informed decision on employee training. As long as you choose an experienced and reliable third party training company, you'd definitely reap the long-term financial benefits.