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The Costs of Training your Staff – Or Not….Since September 2001, businesses in Canada have felt the substantial effects of the US tragedy. Add to that the blackout in Canada´s east last summer and the continuing "Mad Cow" crisis, and the currently difficult economic climate is easier to understand.
Business must always take appropriate measures to offset the effects of complex economic times. Layoffs and downsizing are common and expectable, as are cuts to `nonessential´ expenditures. Unfortunately, staff training is too often considered a dispensable cost. In an October 6 2003 article for MacLean´s Magazine, Paul Wells outlines his frustration with poor or non-existent customer service. His variety of bad experiences highlights the dearth of caring and dedication shown by employees with a variety of organizations. Think you´re above it? A survey published in 2001 indicates that over 67% of customers accessing services across a variety of business types (retail, financial and service) are up for grabs and of those, fully 40% will choose another provider if – or when – they find better customer service elsewhere. This holds true even when price is not comparable. In short, people are willing to pay for good service. The worse case scenario is that 67% of your clients actually do go across the street for better service. Can you afford that loss? Can you afford the lost of even 5% of your customer base? Back to those `non-essentials:" In the context of difficult economic times, without question spending money on training may seem an imprudent path to choose when seen simply as an expenditure. The usual comment is "We´ve had a tough year/two years, and can´t spend that money right now." But with a significant number of acquirable customers -- that 67% or so -- and the probability of retaining your current client base via excellent service practices, training expenditures must be considered as relatively inexpensive business boosters. Consider this: you choose to spend training your staff on effective customer service or sales practice. Over the next 2 months, you can expect to retain the 2 –5% of clients who would have normally gone elsewhere in the short term, and to acquire an additional 2 – 5% new business. Simply retaining 5% of your customer base translates into an increase in profits of 25% and often substantially more. Add to that a further 25% increase through new business acquisition. Now that is an excellent investment in your business, not an expense. In order to maximize your investment in training, there are a few important guideline items to be aware of. These include good analysis of your company´s strength and weakness areas, research into training providers and, more specifically, into the trainer themselves. Secondly, consider how the training program addresses your organisation´s needs and whether the program can be tailored to fit the specific needs of your company. A simple way to know how well you´re doing in your customers´ opinions is to ask. By providing short, well worded and specific questionnaires to your clients, you will easily understand where you are succeeding and where your company can improve. Another method is to simply install a suggestion box, which will provide you with external (client) and internal (staff) opinion. If you are not already providing some method of feedback for both clients and staff, you are missing a mass of excellent and useful information. Researching trainers and training companies is time consuming but is an essential step. It is certainly possible to buy poor training, so limit that costly possibility through good research. Most trainers and training companies are accessible via the Internet, where you will find their background information, location, and pricing in most cases. Always consider word of mouth referrals, too; such opinions are independent and come from direct experience with a trainer or company. A mistake some companies make is to avoid independent trainers. Choosing large company or one with a large number of contracted trainers does not necessarily ensure quality of training. Many independent trainers provide excellent training and are more flexible in what they can and will do for you because they are not constrained by a parent organisation. Once you´ve decided on two or three possibilities, direct contact is in order. You´ll need to know specifically how the trainer and their program relate to your company´s identified needs. You will also ask how targeted that company or trainer can be with their presentation and how willing they are to customize their training to your goals. Finally, ascertain if the trainer is available on your schedule, whether they will train in-house using your company´s facilities, or whether you will require outside space. Keep in mind that although a trainer may not be intimately familiar with your product or service, a good trainer will do good research into your product, market or service prior to meeting with you and training your staff. Ask them what preparation they will do in order to meet your needs. Request a trainer´s resume or bio for additional information on their background, their education and their experience. This sleuthing is important and necessary to finding the best provider for your needs. A generic presentation will provide a basis of training, but a presentation that speaks directly to your company´s needs and goals will offer your employees the greatest advantage. The material will make sense and will be much more memorable and accessible. The next question will be cost. Our tendency is often to choose a product based on price. Where all other things are equal, price is an appropriate deciding factor. With training, however, price is rarely the best point of decision. There are wide cost variances in the training market, and higher cost does not guarantee greater quality, nor will low cost indicate a substandard product. Consider each trainer´s or training company´s overhead costs: the larger the company, the higher those costs and you will be paying those costs regardless of training quality or trainer experience. Finally, set a date to meet with your choices. If it is not possible to meet face-to-face, conduct a phone interview. If you can meet in person, ask that the trainer bring the materials they intend to present. If you contact is by phone, ask for samples of their materials a table of contents or their complete manual if they are willing. Normally, you will see their manual or similar training materials, and copies of any handouts they will provide to your employees. Usually, trainers will not leave copies with you, as some unscrupulous companies simply take those materials and attempt to provide training themselves. Finally, establish dates, timelines, expectations and contracts. Make sure all expectable costs are covered in the contract. These will include:
Lastly, consider training as an ongoing process. For a variety of reasons, training must be a regular, predictable occurrence. Certainly in terms of staff attrition and changes, who has and has not been trained will change from year to year. Also, as businesses grow and information is gathered, internal Best Practices will change to meet the needs of your customers and your internal structure. Most importantly, consider training as a way to generate internal and external good will. Staff whose organizations support their learning and growth are much more likely to remain with that company. Customers who receive the benefits of working with your well-trained staff are much more likely to stay with you company and to bring you more business. All round, training is an excellent investment in the strength and growth of your company.
Julie Vincent can be reached via email. Julie Vincent is a professional trainer and adviser with over 15 years experience in sales, marketing, administration and business. She has contributed to a variety of in-person and print business forums, and trains in the areas of administration, customer service and professionalism << Back to Homepage |