Training investment or expense

In a country where unemployment rates are so high, it is strange that the labor force constantly moves from one job to another. You would expect employees to be loyal to their job. So why do people move a lot?

Partly because there exists a "glass ceiling" – low-ranking staff cannot aspire for higher positions, but mostly because companies invest little in their employees. The "glass ceiling" is actually an accepted fact in most locally owned firms. However, a lot of companies have yet to accept that acquiring and maintaining a staff is a strategic investment that yields long-term rewards, not an expense.

According to recent US studies, only less than two percent of the payroll is invested in training, and those who do enjoy up to 24 percent higher profits. Training provides a sense of importance for the employees, which, in turn, makes them happier and more productive – which, in turn, increases profitability. Now that we have ascertained the need for training, which is better: e-learning or the traditional approach of an instructor in the classroom? Let us explore the advantages and disadvantages of each:

e-Learning advantages:

• Effective. Studies conducted by FedEx, Xerox, IBM and the US Army cite the following e-learning advantages over traditional classroom training:

Learning curve is 60 percent higher, content retention is 25-60 percent higher, learning gains are 60 percent greater, consistency of delivery is 50-60 percent better, and up to 70 percent of training materials are compressed and delivered in the same span of time.

• Cost-effectiveness. On average, the e-learning course alone costs 50 percent less than classroom training. Plus, miscellaneous expenses associated with classroom training such as for travel, accommodation, food, allowance and classroom rental, are eliminated. Total cost saved from choosing e-learning over classroom training is 80-90 percent. Furthermore, another cost reduction reason offered by Raymond Renfro, capacity building and training director of ADB, is "the cost-effectiveness of e-learning over traditional methods since it can reach out to people in far-flung areas…"

• Anytime, anywhere learning. Courses are delivered to the employee through any media – Internet, office network, home laptop, etc. – 24 hours a day, seven days a week, without the constraint of schedules.

• Just-in-time training. Employees may choose to go back and "review" specific sections/topics first-hand when it is most needed; review of classroom courses will only be in the form of notes or handouts.

• Maximizes current infrastructure. E-learning allows companies to maximize current infrastructure and make use of idle computer time for more productive activities like training.

• Reliable progress tracking. Each employee’s progress is tracked real-time. Reports, as opposed to unreliable certificates of attendance, are available for management to review employee’s training merit.

e-Learning disadvantages:

• Higher dropout rate. Dropout rate is approximately 20 percent higher than classroom training because of the need to revamp the corporate training culture, ask for complete "buy-in" and support from the management, do extensive internal marketing of the idea and usage of e-learning, and assess the right technology to deliver e-learning

• Additional administration. Entails a lot of work and follow-up of progress of employees.

Classroom training advantages:

• Presence of human element. Instructors are available physically to discuss questions; e-learning uses technology (i.e. webcam, chatrooms, etc.) to answer concerns.

• Social rapport. Socializing in a classroom environment builds and maintains relationships among employees.

• Applicable to most courses. A classroom course setting caters to almost all courses from conversational English to team-building.

Classroom training disadvantages:

• Absence of real, concrete progress report. With classroom courses, the management will have to rely solely on attendance sheets and instructors vouching for employees’ attendance, and progress reports.

• Delay in updated courses. Especially for IT, instructors will have to rewrite or revise their curriculum to catch up with new software versions or updates in the market. This will take quite some time and is not an attractive option for those who need to be trained urgently.

• No consistency in delivery. Delivery of training will depend on the instructor’s mood/s. If the instructor is happy, training is delivered effectively and efficiently; if the instructor is feeling "under the weather," the quality of training is compromised.

There is rarely one perfect solution to everything, not even in the world of training. A "blended solution" offers a combination of the advantages of classroom training and e-learning, while limiting the drawbacks. It is this "blending" that allows companies to get "the best of both worlds."

Training employees is an investment, not an expense. Employees will continue to move, businesses will continue to suffer from turnover. But through training, we can minimize turnover by maximizing the potential of our employees, and ultimately, our businesses.

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Arlene K. Yap-Tan is CEO of Yapster e-Learning Inc., a member of Yapster e-Conglomerate Inc. You may contact her at [email protected].