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1300% return on investment? Yes, it works!

You have you already prepared a capital expenditure plan for this year, haven’t you? How much return are you expect to achieve? 10%, 30% or 50%? But you know what? – ROI amounting to 1300% is highly possible!

“Those who invest in vocational training and continuing education set the course for the future.” (Professor Dr. Annette Schavan, Federal Minister of Education and Research of Germany)


While investing the funds you possess you recognize that a certain amount spent on one good or service cannot (unfortunately!) be spent on another good/service in the same time. That means, you always have to make a choice and to determine which investment will bring you the best rates of return. You decide about your investment priorities and resign on expenditures which are not prospective enough in your opinion. And what about training in this context? Are expenditures in training rentable or not?


Source: http://www.flickr.com

According to the findings of one study undertaken at the University of Linz (Austria) in 2008, each euro spent on employee trainings provides 13 euros return or 4% increase in productivity. Further findings of the study are as follows: trainings organized inside the company have higher positive effect than those offered by external institutions. And: personality trainings (focused on soft skills) bring more productivity than language, marketing or IT trainings. Moreover, companies investing in training measures, usually offer higher wages and salaries than those which cut their training budget.

However, not each business owner understands the benefits continuous education offers and many of them do not invest time and money to give a proper training to their employees. And many of those who even recognize the opportunities offered by training, do not give their employees the opportunity to financially participate in the additional productivity they perform thank to new skills learned.

And… How about you? How much are you going to spend on training this year?

Magdalena Szarafin
http://www.szarafin.info

Tags: Magdalena Szarafin, Professor Dr. Annette Schavan, ROI, University of Linz, education, return on investment, training

Views: 113

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Replies to This Discussion

Permalink Reply by Steve Richards on February 24, 2010 at 5:01pm
Magdalena

I have been saying the same thing for a long time now but no one listens. Yes the larger centers understand the value of training, J.P.Morgan in Mumbai is downright impressive, but I'm afraid that the vast majority of small and medium sized centers choose not to hear. In fairness, driven by the need to cut costs.

The current trend is to take an agent of the floor, anoint them 'trainer' in the privacy of the washroom, and send them forth to educate.

Let's hope that centers read your posting and consider the benifits of training - it pays.

Steve Richards
www.steverichardstraining.com
Permalink Reply by Magdalena Szarafin on February 28, 2010 at 10:35pm

"Marketing is not an event, but a process . . . It has a beginning, a middle, but never an end, for it is a process. You improve it, perfect it, change it, even pause it. But you never stop it completely." (Jay Conrad Levinson)


Dear Steve

Nice to (virtually) meet you via BPOVoice.com network! Thank you for your comment.

Small and medium-sized companies are really a challenging target group. That is a group of many new established companies, collecting new experiences and mistakes which they obviously could avoid on their business way. However, cash manages the world - and you always have to deal with the alternative cost situation.

And I think this challenging group could (or even: should) be attracted, using different forms of promotion from those ones, used for attracting bigger players. They should really experience that the funds invested pay back.

Have you tried to offer any shorter trainings (or parts of bigger trainings) for free? If people learn your offer and experience that it brings cash flows for them, they will then come back to you - and buy trainings, paying money for them. Also a participation in companies could be an option: you offer a training to some prospective companies requiring a participation in their share capital from them (which is the training value). So, you establish such a "holding" by that measure, generating future cash flows for you.

Please let me know your thoughts.

Best regards

Magdalena Szarafin
http://www.szarafin.info
Permalink Reply by Steve Richards on March 2, 2010 at 3:32pm
Magdalena Hi,

Whilst I agree that free ‘sample training’ would seem the obvious way forward, past experience with this approach proved it to be unworkable. As good as any sample training may be, if there is no budget for training then there is no budget for training.

A short term view on the part of the centers, maybe. Training is not judged by many in terms of quality or effectiveness but rather by cost. Is this a direct result of the global economic downturn? In part, yes.

You could argue that many of the ‘start up’ centers are under funded. That rather than consolidate their position many centers chose growth. The reasons why training has been put on the back burner are many, what interests me is how to turn the situation around given the value of quality training to a center’s bottom line.

With this in mind we have in recent weeks been approaching bpo forum websites, offering to provide free video training modules to be made available on their site to those who choose to take advantage of them. Exactly how this offer is received remains to be seen.

Steve Richards
www.steverichardstraining.com
Permalink Reply by Pegasus Informatics. on August 22, 2010 at 6:33am
We Agree..! It seriously helps.

Aleem khan
sales@pegasusinformatics.com
Permalink Reply by arun choure on October 25, 2010 at 10:08pm
YEs this is possible because with sharp mind can be posible anything and alwaything. anyone says if you not a challenger then go with him they are best in this way.

then deside my way . what can i do for 1300%

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