How to optimise a limited L&D budget
October 8th 2021 | Posted by Phil Scott
Many businesses experience issues with limitations on their L&D budgets at some point.
The situation is more prevalent right now as organisations recover from financial difficulties resulting from the COVID-19 pandemic. This does not mean that training can come to an end. So, how do businesses continue with a training program when L&D finances are limited? There are some actions that can make this difficult situation easier to manage.
Plan training according to business priorities
Creating a training plan that works well for the business is one of the easiest ways to ensure that the L&D budget is optimised. Compiling this plan means that essentials such as health & safety and compliance training are prioritised.
Training that provides the most potential for the business overall is given the next highest level of priority. Planning in this way enables the organisation to get the best value from its available budget.
Consider best value training options carefully
It’s easy to choose costly bespoke training programs for teams within an organisation when money is no object. However, when budgets are restricted, organisations have to consider more cost-effective options.
For example, recently everyone has seen how distance learning methods such as e-learning can work well. This type of training solution usually involves the investment of less money upfront than face to face instructor led classes.
Invest in reusable training facilities
An organisation may have to invest a significant amount on training materials when first buying them but if the purchase decision is a good one, an organisation can acquire resources that can be used several times over.
These resources may depreciate in monetary valuable over time, but they can become more valuable to a business. This is due to the fact that the more times the resource is used the more value it creates in terms of the benefits of training.
Search outside of big L&D consultancies
Major L&D consultancies provide excellent training services, but these services can be costly to acquire. For this reason, specialist freelancers often provide better overall value for organisations that are working with a limited L&D budget.
Freelancers can also often provide more nuanced insight into individual subjects. They also often have hand-on experience which places them in a good position to provide valuable advice based on the real world.
When searching for freelance training consultants, organisations search reputable online platforms and seek references from independent sources as well as credentials from the individual they are seeking to hire.
Look inside the organisation
Whether operating with a limited L&D budget or not, top performing organisations recognise the value of building internal coaching and mentoring into their training strategy and planning.
People who work within the organisations have the right skills and knowledge to pass on to others who need to build on their skills. They also have an understanding of the goals and culture of the organisation, so they are perfectly placed to ensure that individuals are advised and supported appropriately.
Combining these actions helps an organisation to operate an effective training program even when there is a limited L&D budget in place.