Companies have started outsourcing their training function for economic and practical reasons. From reduced costs to liability containment and a decrease in managerial load, there are a variety of reasons for this growing trend.
This article will analyze the reasons in helping to formulate an opinion on whether this outsourcing is in fact a wise move.
REDUCED COSTS
Organizing training sessions is not an easy task. There’s a reason why HR dedicates an entire function of its department solely to training and development. Dedicating a function directly translates to employees which are a cost even beyond the salary one needs to pay.
For every employee you keep, you need to consider the costs of benefits, gratuities, bonuses, and insurance coverage. Solely from a monetary point of view, there are expenses associated with hiring an employee other than just paying the salary.
There’s also an opportunity cost to consider. By investing time and resources into one function, you are automatically sacrificing an opportunity that the same time and money could have been used to increase the company’s profits or towards organizational growth as a whole.
REDUCED LIABILITY
Training your own employees also comes with liability. In effect, you are taking on added responsibility by conducting your own training for heavy equipment operation. In addition to requiring certifications to operate such machinery, you first need to be trained to a certain degree in order to get the certification. By instructing individuals on this usage, you are in a way taking responsibility for the individual’s actions on the basis of which they are being certified.
This also has an effect on your overhead costs as taking on an added liability equates to an increased insurance premium. Also, if something were to go wrong then there are litigation costs which, even though consequential at best, are still a concern when it comes to your insurance evaluation.
REDUCED MANAGERIAL LOAD
In addition to the cost and liability element, there is also the managerial viewpoint to take into account. There is no denying that where you have employees, you also tend to have employee-related issues.
As a manager, regardless of their position in the chain of command, the more people you have to manage, the more load you take on. More employees also mean having to deal with more human-resource-related issues, which again results in a diversion of time and resources.
First and foremost, without the responsibility of training, you have one less function to worry about. Your overall accountability is reduced and there is one less board-mandated guideline for you to implement.
Furthermore, the time and resources you were to spend on dealing with training related matters could be diverted to a function that creates profits for the business.
Companies are moving more and more towards this trend of focused and prioritized management and investment of resources so that company growth and sustaining the company mandate can be ensured above all else.
CONCLUSION
Operationally, one can see how much benefit can be derived by outsourcing the training function to an independent trainer or service provider. From a cost perspective, the effects are felt more in the long term.
If you’re looking for someone to train your staff on heavy-duty machinery operation, then check out Blacks Training Solutions.
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