COST CONTROL & TRAINING

February 25, 2015

Typically, employee turnover costs businesses about one-fifth of a worker’s salary to replace that worker. A big number!

Further, it is well known that investments in training can often improve employee retention statistics.

But, there are costs associated with the training provided and these are the costs that we, as trainers, can do a better job of controlling.

It is important to understand that the trainee-labor costs associated with the actual training events are, by far, the single biggest cost factor relating to that activity. Trainee-labor costs, in most instances, exceed all the money you may have invested in vendor courseware and/or instructors — combined!

And yet, there is an effective and easy way to minimize those labor costs and, at the same time, dramatically improve your training initiatives.

The need to use a targeted approach to provide the right training — to the right learner — at the right time — in the right modality — is the challenge.

A skills assessment test determines skill gap areas needed to substantiate worker qualification on the job. It determines the skill areas required to improve or enhance on-the-job performance. And, it identifies areas for skill development that will prepare for the worker’s future career track.

For a business unit or production department it can determine the skills required by a group or team assigned to achieving the organization’s business goals and priorities.

A skills assessment test can demonstrate the knowledge and skills already present in an organization and can adjust the workforce behaviors and performance necessary to accommodate business change.

Skills assessment tests can: identify skill gaps, define the required skills, assess an organization’s training needs, and assign the right type of instruction to a specific task by skill level. In sum, it can eliminate the costly training regimen of an “every worker takes every course” approach. And, that means saving big bucks!

We all want to improve the profit margins within our organizations. As trainers, the trainee-labor cost (seat-time away from the job) is the biggest single expense item we can help control. Effective use of skills assessment tests will make it possible for you to achieve many of your cost savings goals.