Training Cost in an Organization

Training Cost in an Organization




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Training Cost in an Organization

Employee training is very important part in an organization which improves the organizational performance. After the organization has recruited the employee, it is important to have training budget to enable the employees cope and work towards achieving the goal and objectives of the organization. An organization has many challenges including economic downturn whereby it needs to have implemented strategies to deal with these challenges. The organization therefore, should consider the impacts resulting from cutting down of the training budget because it leads to future pain or collapsing of the organization. Financial downturns affect every organization whereby it is wise for the business owner should be equipped with skills and knowledge on how to overcome these downturns without interfering with the employees. There are various reasons as to why an organization or business owner should not cut their training budget. The expenses of replacing employees are more than the cost of retaining employees. Training of the employees gives them morale and improves productivity whereby they feel that they are needed and they are important people in the organization. Training programs within an organization gives the employees power and sends a message to them directly that their effort is of importance therefore, cutting the training budget makes them think in a more worrying way instead of innovative way. This gives room for poor performance and low productivity because of worries of who to cater for their education and the time they would be laid off (Robbins, 2012).

It is also a bad idea to cut the training budget during hard times in an organization because training the employees builds strong skills and knowledge in their different positions. Training the employees make them perform their duties with higher degree of proficiency which in turn improves the organizational productivity. If the employees are well trained, there is no need of more control because they have skills on their tasks. This also reduces the level of supervision because they work under no pressure, dedicated and committed to the achievement of organizational goal. This is because they feel that their efforts are appreciated through training programs and other educational skills gained from the training. They are able to put extra effort in the organization to ensure that more yields have been produced due to the training exercise received. Well trained staff focus on the organizational goal which in-turn reduces the level of complains in the organization. It also makes the employer concentrate on other productive issues rather than supervising the employees. The base of the customers is maintained through the same employees whereby most of the employers consider maintaining instead of expanding it.High trained professional have high skills of maintaining strong relationship and great way of handling the customers which is the best way for organizational success. The employees are the people who frequently interact with the customers whereby keeping good relationship ensures that the purchasing power of good and services is high. Training the employees ensures that they are able to answer different questions presented to them by the customers without attitude which keep the customers’ needs and interest (Bewley, 2010).

Additionally, training the employees is one of proving benefits to the employees if other ways of compensation are unaffordable at the moment. Training of the workers ensures that the culture of the young generation for education has been developed. The people will pursue you as an employer in your organization instead of the employer pursuing them which will provide light or insight during tough times of the organization. If the employees are well trained, they are capable of providing innovation and insight for future opportunities where necessary. They are also able to provide solutions to problems that may arise in the organization through the knowledge and skills gained from the training programs. It is a bad idea which many employers and managers feel that, cutting down the training cost will reduce the challenges or cost in the organization during tough times which is wrong. Cutting the training cost will only reduce the cost at the moment but will create more problems in the future (Robbins, 2012).

On the other hand, training of the employees during the tough times should be maintained or increased at some level. This is because during tough times, many innovations and insights are needed to ensure that the future challenges have been eliminated. Training of the employees during tough times ensures that there is goal setting, targeting, action planning, customer relating and independent setting are well secured even during these tough times. Increasing training during tough times equips the employees with knowledge and skills on how to get rid of the current and future challenges, in addition, new strategies can be evaluated and implemented from the training. It is therefore, important as a leader to determine the kind of training the employees need so that they can be trained in their specific skills. Training should be followed by coaching, follow-up and monitoring of the employees to ensure that the education has been effective to them (Pearce & Michael, 2010).

Conclusively, it is important as the business manager to ensure that the training of the employees is timely. You should also know when and why to train your employees so that the specific skills of each individual can be improved. The leader must be able to recognize the potential in different employees and understand what they need to improve for the organizational effectiveness. Planning of the training programs should be well organized to ensure that they are effective not only to the employees but also to the organization. Training is very important as it can improve employee’s skills, the organizational performance and also to be able to handle the identified tasks within the organization (Levine, 2009).


Levine, C. H. (2009). More on cutback management: Hard questions for hard times. Public Administration Review, 39(2), 179-183.

Pearce, J. A., & Michael, S. C. (2010). Strategies to prevent economic recessions from causing business failure. Business Horizons, 49(3), 201-209.

Robbins, S. P. (2012). Organizational behavior, 14/E. Pearson Education India.

Bewley, T. F. (2010). Why wages don’t fall during a recession. Harvard University Press.