Training is typically one of the greatest investments for any organization. Certainly, there’s the cost for the classes – but there is also the time investment and the opportunity cost of things that could be done while your team is learning. It’s hard to be certain that you’re making the right decisions in your choice. In an industry like home medical equipment, it can be hard to get qualified data from your peers on their education budgets as well.
Key Findings from the BHG Study:
- Custom eLearning is the most expensive learning experience to develop, and video learning is the least expensive of those analyzed. eLearning is utilized 28% more often by team members.
- 58% of organizations spend more than $1,000 per learner on training for senior leadership annually – compared to just 39% for high-potentials and 32% for mid-level management.
- The classroom is still king — it’s chosen 22% more than any other modality.
- Coaching/ mentoring is seen as more effective for the third consecutive year, although its use is 37% less.
These five other thoughts are important when contemplating what you invest in improving your business through its people.
The budget battle.
Training isn’t inexpensive and needs a budget. So who takes control? About 40% of companies leave the decision up to the leaders of the business and in roughly half of companies surveyed, the budget is left to HR or the Head of Learning.
You will need to decide what is best for your organization but we recommend clearly defining who is responsible for that budget. Then, share that budget with the rest of your leadership team.
Video = least expensive and most measurable.
Overall, the average cost to develop training tops $500 per hour. Video training pays dividends because it can be used repeatedly and offers metrics on engagement.
While the study didn’t mention it, but most learning management systems (LMS) also include metrics on engagement – which is nearly impossible to measure in face-to-face or one-time training. At the LabTac Academy, we include this type of information for companies who purchase more than 5 of the same course.
Today’s spend is mostly on leaders.
Makes sense, right? According to the Brandon Hall Group, only 17% spend more than $1000 annually on contributor level staff, compared to 30%+ that invest that much into the upper levels of organization charts.
Our honest opinion here… You must invest in the staff that manages the day-to-day operations and patient experience. In an increasingly automated world, it adds value to have all the members of your team at the top of their game.
The classroom is king – but make sure you budget for it
The top 5 modalities of training are the classroom, eLearning, peer to peer, on the job training and coaching/mentoring. When thinking about the annual cost of training, consider the way you will provide it first.
It’s likely you’ll use different types of education. Calculate the cost and frequency when you map out your plan. Include vendor and self-sponsored training in your strategy. It’s unlikely that you will get the result you need if you only do it once or twice per year.
We provide a solid budget calculator in our Creating Healthy Reviews course, if doing the math is a challenge for you.
Technical training takes the most time
LabTac encourages all providers to think about training as a two-part investment: time and expense. Both of these are equally valuable. Technical training should often be provided by the vendor. At about 1/3 of companies in the study people are spending 10+ hours per year on technical training.
We’re not sure that’s enough for a healthcare provider. The good news is that most of the technical training in our space comes free, from software or manufacturing vendors.
Hopefully, you’re able to compare your organization’s investment to what the study discovered. LabTac offers its own stack of solutions for companies like yours as well.
Do any of the types of training mentioned here fit your team needs – but you can’t get execute it?
You might consider the LabTac Academy, which provides on-demand courses created specifically for HME Leaders and Contributing Staff. LabTactical Consulting also offers more customized eLearning programs. Email us at email@example.com or find us somewhere on the social network if you’d like to discuss.