How To Reduce Organizational Training Costs

For rapidly growing businesses, the cost of training new employees — along with related expenses such as recruiting and hiring — can represent a substantial portion of the overall budget. Even organizations that maintain a relatively stable number of workers on the payroll must nonetheless dedicate a percentage of their funds toward hiring, recruiting, and training. After all, some degree of turnover is normal and unavoidable.

The good news? Regardless of what your business currently spends on training, the odds are good that this amount could be reduced fairly easily and effectively by employing a few common-sense HR techniques. Here are three examples:

1. Smarter Recruiting. As we have mentioned before on this blog, a disturbingly high number of job candidates exaggerate about their qualifications — and hiring someone who is underqualified is a surefire way of wasting a whole lot of time on preliminary training. Well-crafted interviews and a mandatory employee background check are both no-brainers in today’s world.

2. Standardized Onboarding. Improvisation is oftentimes synonymous with inefficiency — regardless of what your more free-spirited employees might want you to believe. Also, keep in mind that systemizing business processes such as onboarding doesn’t need to be terribly complex or mind-numbingly robotic. Here are a few examples of what a standardized onboarding process might look like:

Send paperwork home with your employees when they are hired, rather than making them spend their first day of training bogged down in bureaucracy.
Assign one specific person to spearhead the training process, and create a chain of command for directing more specific questions to the appropriate employee.
Provide employee handbooks — and, if you are especially ambitious, send these home with your new hires before day one, as well.

Even if you only took these three steps, you could likely cut an entire day off the training process.

3. Reduced Turnover Rates. A well-trained employee represents a significant investment on the part of your organization — and if that worker walks out the door, so does the return on your time, money, and energy. Offering a positive workplace environment, a competitive compensation package, and a flexible HR team can help dramatically reduce turnover rates, thus lowering your hiring, recruiting, and training expenses as well. Visit Precise Payroll online today to learn more.