Learning Needs Identification 101

The start of every good budgeting cycle for a Training Department begins with the compilation of learning/training needs of the organization.

In a zero based approach to budgeting - the accuracy of learning needs become crucial.

What is zero based budgeting? As tiresome as it is, zero based budgeting is focused on exactly knowing who you will train and how much this training will cost. As much as I would like to discuss the pros and cons of this method - if used correctly it is the best and most transparent method.

What other options exist for creating a training budget?

1. A percentage of total employee cost
2. A fixed allocation for levels of the organization e.g. executive to C-level, along with a separate allocation for top talent for each level.

There are 3 levels to identifying learning/training needs:

1. Organizational Level - What does the organization need to learn in the next 12 to 24 months. This can be related to new technology, new markets/regions, new product development etc. The strategy document of a company will give you an idea of what you need to be looking at.
2. Functional/Team Level - Here, we are looking at team dynamics and optimizing performance. Most often than not a learning solution like "Presentation Skills" needs to be taught differently to your Manufacturing team vs your Marketing/Sales Team. Whilst, you maybe tempted to combine multiple functions, I find that development is faster if the programme is customised to the exact requirement of the function. For e.g. A production team would present numbers, a project update etc vs a Marketing team would be presenting concepts with storytelling.
3. Individual Level - Usually the last performance appraisal of the person, along with feedback from the immediate supervisor will give you input for this area.

How often do you need to do learning/training needs identification?

Behavioral/Soft Skills Development - Once every two years. This may sound alien when the budgeting cycle could be quarterly or annual. Behavioural change unlike functional development does not happen after the first workshop.

In order for a person to develop a particular behaviour - multiple interventions and self reflection tools like a 360 or personality profiling is necessary.

Training Needs Identification Red Flags:

1. When employees are identified for soft skill/behavioural development in under 1 year of employment. Functional and organizational awareness are critical at any tenure for an employee - however, if behavioural needs get highlighted it shows a development area for recruitment.
2. The behaviour/soft skill development is the same for an individual for more than 3 years. Most often than not, we provide one solution for a particular area of development. For e.g. presentation skills - whilst there are many vendors, the perceived development has not occurred. A robust database of previous learning needs and programmes attended is important to having the best conversations.

Tips on having the right conversations:

1. Have your data in place. Ensure you have previous training records vs identified learning needs. Check the budget utilization and average learning hours for each department. Present the approved budget vs the utilized budget. Share this information before you start the training need identification process. It is quite common for functional heads to forget what has been done before. Although you faithfully share this information - in a given work day it doesn't always become a priority.
2. Start from the top - speak to the head of the organization first. This will help you ascertain what the overall need of the company is. What worked well, what are the skills that s/he still sees lacking today. What are the skills needed for the future? What strategic changes will occur in the next 6 to 12 months?
3. In a time of budget restraints - I would suggest having just key conversations with senior leadership in order for you to prioritize which departments will have focus. Often we lose face with supervisors as we diligently have these conversations and nothing gets done, even though the homework is done. Avoid just ticking the box - when you know you will not be able to cover all needs identified.