Where Does Your Money Go?

An article in ASTD's May 2008 T&D magazine outlined a recent study by Expertus and TrainingIndustry.com about training budgets and effectiveness. Over 75% of the respondents reported pressure to reduce costs and do more with the same budget. In addition, while there is more pressure for training departments to report return-on-investment, only 20% of respondents use ROI measures.
 
A surprising finding in this study was the breakdown of dollars allocated in the training budget:
  • Delivery = 35%
  • Content development = 26%
  • Administration = 24%
  • Technology = 16%
What does this show? That a lot of money is being spent on things that don't teach anybody anything! A quarter of the budget goes to administration fees, and a third goes to delivering training (e.g. travel and living expenses, salaries, etc.)!

Here are a couple of suggestions offered in the T&D article:

Improve your company's training Web site:
  • Make it more effective and user-friendly to reduce telephone inquiries and increase class registrations and attendance/participation rates
  • Make better use of the training website to market training programs
Create training that is specific to the organization's needs:
  • Don't spend time and money creating and offering courses that no one wants or needs
  • Don't simply roll out a cafeteria-style curriculum filled with general offerings
Posted by Luc Richard at August 16, 2008 9:39 AM
Categories: Articles
Tags: e-learning elearning scorm training online training ottawa
 

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