Savvy business owners understand the ROI of employee learning and development. They recognize that equipping their workforce with the tools and techniques to succeed at their jobs pays off in a big way. Employees are more engaged, morale is increased, and turnover is minimized, but that's not all. Companies that invest in employee training realize up to 47% more profits.
But not all executives are convinced. So, where does that leave the sales managers who need funding to get started on their team training? It can be a challenge, but it is possible to budget for your team training AND increase profits. Let's discuss how to approach it.
As a BevAlc manager, you know that your company's performance is dependent on the people who work every day to sell your product and service your customers. Getting them high-quality, on-demand, and virtual live training is key to your sales team's development and performance. The first step in getting the money for that learning platform is developing a training budget. You know that it is an investment, but how much do you need?
One of the ways to approach training budgeting is by using industry-specific numbers. Start by researching the average salary for a salesperson in companies of a similar size to yours. You'll then need to multiply that number by the number of full-time hours worked by a single employee, also called FTEs. The result gives you a total training budget based on talent in your industry.
One of the many ways online training contributes to a company's bottom line is cost savings. Live, remote training requires not only the cost of the class but travel for employees and possibly the trainer, lodging, and meals. There are also the lost sales opportunities from taking your reps off the job to sit in a class. Live virtual and on-demand self-paced learning doesn't require any of those expenditures.
You not only provide the ability for your team members to learn at their own pace and in the manner that works best for them, but you give them the freedom to complete their training when they feel the most engaged. You don't have to worry about class size limits because it is scalable to your organization. Because it is on-demand, your employees can complete training when they aren't scheduled to call on customers.
Let's not forget about the many other benefits that support investing in a continuous learning culture, such as:
Increasing your team's knowledge and training among all salespeople by just 5% can get you a significant return. Training your employees leads to higher achievement for each of them. Arming them with the appropriate skills, tools, and techniques empowers them to meet and exceed their sales goals. It allows them to serve their customers faster and more efficiently, leading to increased customer satisfaction and higher sales.
To illustrate how increasing your sales team's performance by only 5% can lead to higher profits, use the following calculation:
The total number of salespeople you have ______ x Average salesperson sales _____ x 5% = $______
For example, let's say you have 10 salespeople who sell an average of $400,000 each per year.
10 x $400,000 = $4,000,000
$4,000,000 x 5% = $200,000
If you recognize only a 5% increase, your annual sales will increase to $4,200,000.
When you look at the cost savings and the benefits, it is not hard to see the ROI of employee learning and development. Few other financial investments have the same potential payoff as developing your staff. By defending your budget with a compelling business case based on quantitative evidence, you can show reticent executives what they could lose by skimping on training. To learn more about what online training can do for your organization, contact Fox Selling System.