Employee training is the investment. Companies secure large amount of their budgets on the employee training regardless of the industry or the company size. According to the ATD 2016 State of the Industry report, companies in the United States spent average $1,252 per employee on trainings in 2015. Each employee spent 33.5 hours per year, and the learning cost was $82/ hr on average. Most of the companies are willing to spend their money, time, and effort to improve the employee quality.

3 Reasons Why The Employee Training Is Important

Here are the reasons why you want to give the full consideration on the employee training/ development.

High quality employees gather and stay 

Motivated employees always seek for the opportunity to improve their skills and knowledge. The great training program attracts them, and gives them a reason to stay in your company. It results in decreasing the employee turnover, which is very important to save money; it is very costly to recruit and train the new employee after losing the current one.

More innovative work team

When the employees have access to good learning materials and new information, they are more likely to come up with innovative ideas or solutions.

Boost customer satisfaction level

Employee trainings are the shortcut to improve the customer service. It will increase employees’ awareness on the matters of customer services.

Now you know why many companies invest in the employee development. But how do you find the appropriate budget for your company? Charles Schulz introduces the following method to determine the training budget:

Set The Nudget Based On The Company Goals

Ask yourself these questions before setting the budget.

      1. What is your main goal to achieve?
      2. What are the sales goals and the revenue goals?
      3. How many customers do you need to achieve the goals?
      4. The numbers of retained customers & new customers you need?
      5. What and how to improve the product/ service you are offering?
      6. Can your existing team achieve these goals with current skills?

It will help you to find out what is the specific things to improve or supplement; what makes your company away from the goal? It may be the workplace environment, the lack of knowledge/ skills, or the old-fashioned system. Take your company goals into account when trying to build the on-point training strategies. 


Lastly, Decide The Detailed Training Techniques To Use

There are massive options you can choose from for the training methods and materials. Each training technique has advantages and disadvantages. Therefore, it is essential to understand the characteristics of each method to choose the most effective one for your work team. TrainingToday explains about the training techniques in its article “The Most Effective Training Techniques.” 

    • What are your training goal (for each session)?
    • Who are the trainees?
    • How much can you spend on the training?
    • How much time can be allocated for the training?

Based on the answers to these questions, determine the best training method/ material for your company. The followings are the five major training methods widely used today.

1. Classroom/ Instructor-led trainings

It is the traditional method, and one of the most popular options of trainings. It includes blackboard/ whiteboard, overhead projector, video, PowerPoint presentation, and storytelling.


        • Efficiently introduce a large amount of materials/ information.
        • Face-to-face and can be very personal (Especially when it includes storytellings).
        • Everyone will gets the same information at the same time.
        • Good value for the price.


        • It is difficult to schedule a session for the large numbers of employees.
        • Sometimes it is not interactive and cannot gain trainees’ attention.
        • Effectiveness of the lecture affects the training success too much.

2. Interactive methods

There are many ways to get trainees involved during the sessions. It includes quizzes, group discussions, case studies, active summaries, Q & A session, role playing, demonstrations, and so on.


        • Trainees are engaged in the training, and generally gain more information/ knowledge.
        • More enjoyable for the trainees.
        • Opportunity for veteran employees to pass on their knowledge to new employees.
        • In-session feedback to the trainers is possible. (Because of the direct communication between trainer and trainees.) 


        • Time-consuming because of the activities.
        • Sometimes it can be less structured/ organized.

3. Hands-on training

Experiential trainings are very effective for the specific purposes. For instance, cross-training can make trainees improve their skills and produce the employees who can handle more than one job.

Demonstrations are helpful to introduce the steps for new systems or processes, and coaching can focus on individual needs of each employee.


        • Efficiently introduces new procedures and equipments.
        • The learning contents can be practical immediately after the training.
        • Trainers can easily tell if the trainees have learned the contents during the session. 


        • Not suitable for the large audience.
        • Some methods can cause confusion over the system, and reduce the productivity during the training.

4. Computer-Based Training (CBT)

Computer-based training is getting more and more popular and widely used around the world. It has options such as text-only, CD-ROM, multimedia, and virtual reality.


        • Easy to use and convenient.
        • Often offers customized version of the materials for a variety of needs.
        • Most effective in developing and practicing new skills.
        • Cost-effective because same program can be used for large group of people.
        • Interactive contents are available.
        • Enable to track each trainee’s learning status.


        • Trainees must have computer literate and computer access.
        • Not suitable for the trainings on customer service, sales, and sensitivity trainings.
        • Often difficult for trainees to interact with trainers.

5. Online, E-learning

Since the business world has been greatly globalized, it causes the demand for training technology to share the materials with people in different locations worldwide.


        • Efficiently deliver the training to multiple locations, and it saves money on travel expense.
        • Good for self-directed learning.
        • Easily updated with new policies, procedure, regulations, or issues.
        • Variety options for trainees with different level of knowledge/ skills.


        • Usually cannot be customized for company’s specific needs.
        • Trainees must have computer literate.
        • Consumes massive bandwidth of your company’s internet service.
        • Outdated hardwares could cause issues on receiving the training.
        • Limited access to professional advices and quick questions response.

Each company has different purposes and goals to achieve. By understanding all of these aspects of the employee training, you will be able to determine the most efficient and successful methods for your company.


How to Use Your Business Goals to Set Your Employee Training Budget

The Most Effective Training Techniques

ATD Releases 2016 State of the Industry Report