Budget Battles: Help Hazem Secure More Funds for the L&D Team!
Hazem, an experienced L&D specialist, had been making the case to his manager, Sarah, for a larger training budget to upskill the company's employees.
However, Sarah was hesitant, concerned about the high costs. Confidently, Hazem did thorough research and put together a strategic plan that highlighted cost-effective eLearning solutions coupled with a clear return on investment.
That’s why, in this edition, we will put ourselves in Hazem's and all L&D teams shoes to discover effective strategies to maximize the ROI and minimize training costs.?
We need your help to make Hazem’s plan as perfect as possible.
First, we need to know which factors determine how the e-learning course or materials are priced.
UMAMI Experts offers Hazem the 3 main factors of e-learning course pricing:?
1- Nature of the E-learning Course:
The format, duration, and complexity of your course can greatly impact the development cost.
Whether it's an interactive course, an animation or video-based or a multi-layered curriculum, the hosting medium and device accessibility - all play a crucial role.
2- Outcome and Interactivity Level:? ? ???????????
?The more interactive your course needs to be, the higher the development costs.
Product training, process training, and software simulations require advanced interactivity, which naturally drive up the price tag.
3- Time and Effort of eLearning Experts: ?
Course complexity, multimedia elements, and translation requirements can further influence the time and effort needed.
Now, the question remains, should Hazem and his L&D team ask for more budget??
L&D teams should make a strong case for a higher budget, highlighting the tangible benefits of providing robust eLearning opportunities for employees.
With a well-justified and strategic approach, the investment in eLearning course development can yield substantial returns for the organization.
The infographic below highlights 5 statistics that support the effectiveness of e-learning courses over traditional training that Hazem can include in his report:?
As a result, more and more L&D professionals are searching for a strategy to minimize training costs without compromising its great potential.?
Here is UMAMI’s recipe, a set of 6 proven strategies that create a delicious experience for booths, L&D teams, and employees.
1- Adopt E-Learning Custom solutions
Custom eLearning programs enable businesses to enhance business performance while achieving their unique organizational goals.
For instance, onboarding and orientation can benefit from e-learning. E-learning can offer lower costs and resource usage. E-learning can provide more accessibility and convenience.?
Here is how UMAMI helps 2 organizations? allow their new hires to complete onboarding activities at their own pace and on their own schedule.?
For B-Tech orientation program, we developed an interactive game that helped new hires learn about the company's values and policies in an engaging way. The game takes the new employees through different virtual locations, such as a jungle and a beach, while seamlessly incorporating information about the organization.?
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For the GIZ onboarding program, UMAMI developed a 360-degree interactive course that puts new hires directly in a simulated office environment. This immersive experience allows the new employees to familiarize themselves with the workspace, office layout, and daily operations before their first day on the job.
Hazem can take advantage of these 2 examples and add these results to his report to show how online orientation software can reduce costs:
Less staff time is required
2- Enhance Learning curve with microlearning
According to research by Hermann Ebbinghaus, 70% of new information is forgotten by learners within 24 hours. You should focus on information retention and reinforcement because training has such high costs.
Content can be consumed more easily and retained for longer periods of time with the help of microlearning, also known as bite-sized learning.
Here is another stat that Hazem can add to his report supporting his adoption of microlearning:?
Learning expert Ray Jimenez emphasizes that microlearning lowers creation costs by cutting the time required to generate eLearning content by 300%. As a result, fewer resources and instructors are needed.
3- Invest in E-Learning Platforms
We all know the importance of investing in an LMS. But here is how Hazem can invest in the perfect one:?
When choosing a learning management system (LMS), considering the company needs and those of? learners is essential.
Essential features include content creation and management, interactive learning tools, online assessments, mobile learning, personalized learning paths, and e-commerce capabilities.
These features should support various content formats, engage learners, conduct assessments, generate comprehensive reports, and be compatible with mobile devices.
4- Constantly recheck your training programs
Hazem also can suggest to Regularly updating training programs to prevent them from becoming outdated and costly.?
Revisiting courses content annually helps identify areas for improvement, incorporate new knowledge, and align with evolving organizational needs.
5- Have a plan to measure the ROI
A survey by Voxy found that only 11% of organizations actively measure the return on investment (ROI) of their training initiatives.
To calculate ROI, companies can estimate productivity gains or use employee salaries.
Understanding the financial benefits of a training program is crucial for getting the L&D budget approved.
Hazem was relieved and excited to put his plan into action.
By combining cost-effective eLearning solutions with a clear demonstration of ROI, he was aiming to secure the necessary budget to support the ongoing development of its most valuable asset - the employees.
What additional considerations do you think Hazem should include in his report to further strengthen his case for the increased L&D budget?
Book a free consultation with UMAMI experts for more!