Brighton (UK), March 2009 - There has never been a greater focus on reducing costs than right now. All the surveys show greater pressure on learning and development costs. Kineo has published a More-for-Less Report that can be downloaded for free.
The latest Bersin research in the US market revealed that training spent per learner fell between 2007 and 2008 and is likely to fall further in 2009. In large organisations, expenditure on online learning also fell for the first time ever and there will be continued pressure in 2009. ASTD's recent survey showed that over fifty percent of respondents are being challenged to do more for less with their budgets.
The More-for-Less Report looks at the practical steps one can take to reduce learning and development costs. These are grouped as follows:
Strategic changes
This section examines your current performance. How do your costs compare to the industry? How cost-effective are your learning blends? Does your delivery reflect your business priorities? And, how have you adopted more flexible technology-based learning solutions?
The strategic changes considered include identifying priorities, reducing or cutting training that doesn't directly relate to business objectives, and switching to more technology-based learning and outsourcing.
Technology-enabled opportunities
This section looks at opportunities to reduce costs through the use of technology and online learning. The report looks at the ways you can reduce the costs of eLearning solutions through rapid eLearning, low cost tools, internal development, more mixed online delivery methods, effective procurement of eLearning, and using open source learning platforms.
Face-to-face opportunities
This section of the report points out opportunities for cutting costs if you're doing face-to-face training. These include more effective procurement, improving fill rates, leveraging work experience, and reducing administration costs.
Outsourcing
It is not always a popular option, but an alternative way to address cost reduction and performance issues is to look at outsourcing.
Adding value
More for less is about adding value, not just about cutting costs. The ideas in this paper are designed to enable learning and development to become a more flexible, technology-enabled service that helps organisations improve business performance.
