Best 5 Vital Ways Startups can Lower Employee Training Costs

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Written By Devansh Vijay

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All organizations share the common goal of creating a skilled and competent workforce. Organizations are driven to bridge the skills gap in an era of intense competition. Here is where employee training comes in.

Every organization offers some type of training program or module to its employees. Employee training is a large part of an organization's operational costs. According to Indeed, the average cost for training an employee is approximately USD 1200.

Even if you are based on one of the low-investment business ideas, it is important to keep your operational costs low. Sometimes the operational costs are more expensive than the initial cost of starting a company. It is important to reduce employee training costs as much as possible.

If you want it to happen, it is possible. We will show you how small businesses can reduce employee training costs. The report also offers practical and sensible ways to reduce training costs. Let's get started immediately.

Here are Five Ways Small Businesses Can Cut Training Costs

1. Delegate Responsibility

Do you prefer to be in control and delegate authority? You may not be able to embrace the magic of delegation as a leader if you don't. You can't do everything by yourself with the same efficiency. You don't have to do it all yourself when you have a talented team.

You give your team members the opportunity to learn firsthand by delegating tasks and authority. People learn more holistically when they are exposed to real-world situations than through classroom training. Let's take it as an example.

Let's suppose you have to train your PHP developers team. Is it possible to have classroom training in PHP that is more effective than doing actual PHP tasks? Employees learn better when they are exposed to real-world situations. It's possible to replace many of the classroom modules with on-the-job training, which you can offer via delegation.

It is possible to reduce the high cost of employee training. Delegating can help you lower the cost of employee training and increase engagement. You can demonstrate greater trust in your employees when you delegate responsibility. Your employees will appreciate your delegating acts, which will encourage greater trust and acceptance.

They will feel more motivated to make a difference and have greater enthusiasm because they trust others. Harvard Business Review has shown that employees who thrive in trust have a 76 percent greater engagement rate. In such companies, employees are 50 percent more productive.

Even small acts of delegation can make a big difference for small business owners. Your ability to delegate effectively will lead to better results. Charging is a cost-saving strategy that can help you reduce your operational expenses.

2. Introduce Mentoring Programs

Mentoring programs have become a huge hit in today's corporate world. All businesses, from small businesses to large corporations, are investing in mentoring programs. Push Far reports that more than 70% of Fortune 500 companies have mentoring programs. 93% of SMBs believe mentoring programs can help them grow their businesses.

Mentoring programs can have many business benefits, but a significant reduction in employee training costs is a major advantage. Mentoring arrangements at work promote an organic approach to employee development and training. Mentors have years of experience and knowledge that employees can draw on to help them learn.

Mentoring facilitates a natural, structured, and continuous learning environment that is more natural than traditional classroom learning. With thoughtful mentoring programs, you can replace some learning modules that focus on soft skills.

Employees will also feel more comfortable asking for guidance and assistance in mentor-mentee relationships. They may not feel the same confidence when seeking advice from you if they only view you as a boss. It makes perfect sense for small businesses that mentor their employees.

Mentoring programs can help you build competitive advantages in your industry, from effective knowledge sharing and cultivating a sense of belonging at work. It is important to identify and fill the knowledge and skill gaps in your workforce.

There is no need to create separate training programs, which can increase operating costs. Instead, this money can be used to leverage business growth by increasing R&D spending aggressively over time.

3. Invest in Learning Management System

LMS integration is one of the most important innovations in disruptions to education and learning. The global market for learning management systems is growing as more businesses adopt LMS integration. Fortune Business Insights explains that the global LMS market will reach USD 40.9 Billion by 2029.

LMS solutions can be used to enhance employee training in a remarkable way. LMS solutions can also be a cost-effective option for employee training and development. Finances online show that 41 percent of businesses have succeeded in lowering employee training costs by integrating LMS.

LMS solutions can also be used to gamify employee training, track learning outcomes, and create personalized courses. LMS can make employee training more efficient, accessible, comprehensive, and easy. This investment is in your best interests to reduce operational costs. LMS solutions are more advantageous for startups if implemented as soon as possible.

4. Encourage leadership opportunities

You cannot train leaders through classroom training programs. Leaders emerge from real-life situations and are able to demonstrate great leadership qualities. All organizations must identify and nurture great leaders for the future.

It is for this reason that many organizations offer leadership development programs, which can be expensive. But I'm trying to show you that your future leaders can be trained more effectively by encouraging leadership opportunities at work. Your leadership candidates should be exposed to situations in which they will have to assume leadership responsibilities.

It is as easy as leading an employee engagement activity at work to be a leader. This is a way to develop leadership skills in individuals and expect them to perform in leadership roles. You won't need to spend a lot of money on leadership development programs. These additional savings will allow you to take care of other operational aspects.

Your sincerest employees will see leadership roles as a great opportunity for career advancement. This will increase employee satisfaction. This will result in greater engagement and retention.

5. Virtual mode for shift training modules

Physical training programs are expensive in terms of logistics and accommodation. These costs will be incurred if you plan to conduct training sessions that last several days. You can cut all of these costs by taking online training.

Surprisingly, 90 percent of employees wish to have access to training materials at any time and from anywhere. Lorman also stated that 85 percent want autonomy and flexibility to learn on their own time. 90 percent of employers and business leaders see great potential in mobile-based employee training.

It is clear that switching to online training sessions is a win/win situation. Your employees can have access to virtual training sessions whenever they want and even learn from their smartphones. Virtual training can also be an excellent way to save money on stationery and logistics.

Upskilled further reveals that eLearning modules can increase learning retention by 60%. Employees can also access online training and learning whenever they wish. They won't be able to access lectures or participate in coaching sessions around the clock.

Online training will not only save money but also improve learning outcomes for the company. Employees can learn incrementally and consistently with online training modules.


Employee training is an essential operational aspect of all businesses. Each business must invest in training programs for employees and pay the same costs to create competent workers. These costs can also be quite overwhelming for small businesses. These costs cannot be ignored, but a significant portion of employee training can be avoided using the following approaches.

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