Training and development is an essential part of any company that will allow the business to survive and grow. Most companies allot a certain amount of money to training costs every year. However, not every year is equal and some years may see a significant portion of the training budget go unused. When the amount that is allotted for training goes unused, it can be counterproductive and harmful for future years in which more training is needed.
Reasons for Training Cost Fluctuations
Training costs may fluctuate greatly from year to year for a number of reasons. During some years, companies may require a greater number of new employees to be hired due to cyclical changes, growth, or expansion. These employees will all require training in order to become productive members of the company.
Changes in Training
Extensive training may also be required to bring existing employees up to speed when companies update systems or when training needs are altered due to external or internal changes. Training needs should be continually evaluated and adapted as needed in this rapidly changing world. However, this may cause training costs to spike when swift and monumental changes occur and may cause lulls in training costs during years that relatively few changes occur.
Extending Yearly Training Budgets
It can be tricky to extend training budgets, as training is intangible. Training generally cannot be purchased in advance and stored, as can most products and services that are needed for the business to function. Some companies that sell training programs and software are realizing the benefit in helping companies to easily “roll over” their training budget, however, and are making it easier for companies to extend their 2014 budget into 2015 and beyond.
Year End Sales
Many vendors that supply training software for different areas within organizations are beginning to offer deep discounts at the end of the year. This can help companies to use up the last of the training budget for 2014 and invest in a bright future for 2015. If no monumental changes are expected to occur in the industry or organization, it may be wise to purchase training for the following year while these sales are in place. However, expecting training programs that are purchased to stay relevant throughout the coming year may be unrealistic for organizations that have a huge basis in technology or other rapidly changing industries.
Some vendors that supply training software are now offering options that provide a superior solution to the dilemma of how to extend the 2014 training budget into 2015 while keeping the training relevant and current. Learning credits may be purchased in advance and used to procure training software or spots in training courses as needed. These learning credits can be purchased in large or small amounts as desired, which will allow companies to take advantage of bulk discounts without immediately having to book the courses or specify which employees will be attending training. Companies may find this to be an extremely helpful and efficient way to plan for future success.