Is Business Training a Profitable Venture?

According to the Spanish consultant association Círculo de Consultoras de Formación, training in business skills accounts for 10% of training provided to the major Spanish companies. So, why would this area keep growing if it wasn't profitable?

It's a good idea to look at profitability though, for two important reasons:

First, because companies can be extremely impulsive when choosing partners, which can lead to fragmentation in the supply chain. Is this not the source of much disappointment causing regular changes in suppliers?
Second, because companies show an ever-growing commitment to continued investment in business training - to the same extent as with other areas of investments.

Below are some guidelines used to measure the return on investment in business training:

From a qualitative point of view, does your business training:

Make to your company more attractive and lure in the best candidates?
Help create a clear development process within commercial roles?
Make the best more loyal to you?
Improve the success of initiation periods or lower staff turnover?
Increase motivation?
Impact on client satisfaction?

For all of these "qualitative" indicators, we can use measurement tools that are generally not very complicated.

From a quantitative point of view, is your business training:

Followed by better management of the ‘potential productive time'? (Sales reps spend at most 40% of their time doing what they're hired for)
Really followed by positive development of key indicators: sales, new clients, average number of proposals, sales closure rate, business profitability, etc.?

In this case, too, the indicators are relatively simple and are more appropriate to short sales cycles.

In order to avoid limiting ourselves to the answers to these questions and just measuring the results obtained, experience shows us that three conditions allow us to move from good intentions to action when applying the indicators:

First: know the starting point. Initial analysis is important. This is why we have developed on-line diagnostic and preliminary analysis tools that allow us to respond more quickly to measuring these elements and co-piloting the positive indicators alongside our customers.

Second: choose, together with general management, realistic short-term indicators, both quantitative and qualitative. These indicators should be as precise as possible and illustrate the priorities at any given time. Management communication should emphasize the importance of these priorities.

Third: work in a trusting environment. This step places demands on us, but it also requires our customers to communicate, be transparent, and follow up.

The average cost of a working day's training per sales rep (including his or her salary, course cost, travel and logistics) is between €1,000 and €1,200. This means business training can be extremely profitable, with increases of 15-20% in the chosen measurement indicators.

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