Ten ways to stretch your training and development dollars

Ten Ways to Stretch Your Training and Development DollarsLois P. Frankel

© 2003 Wiley Periodicals, Inc.Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/ert.10060

During a recent visit to a large chain’sframe shop, I approached a young man

whose name badge indicated that he was theassistant manager. I waited as the womanahead of me berated him personally for nothaving the exact item she was seeking instock. When she finished and stormed out,he turned to me, obviously frustrated overthis encounter, and half-heartedly asked howhe could help. I showed him a frame I wasinterested in purchasing but that had noprice tag or inventory control sticker. Heshrugged his shoulders and said he wouldgive it to me for $3. Since most frames of thistype were selling for between $12 and $15, Iseized the opportunity and bought it beforehe changed is mind. As I walked away I saidto my shopping companion, “Now that’s anemployee you don’t want to have.”

It may seem like an unusual situation,but it really is not. I have had similar thingshappen numerous times in the past.Whether it is in a retail store where some-one feeling unappreciated and underpaidpractically gives away the wares, a boredtelephone operator who gives out wrongnumbers, or a copy store clerk who, frus-trated with malfunctioning equipment, un-dercharges for copies, employees like thesecost businesses and consumers time andmoney. As most of us in the field of humanresources know, employees can make you orbreak you. Hiring, training, and retaining

the best and the brightest are critical to thesuccess of every business.

Having spent over two decades in humanresources, I have seen the full spectrum ofapproaches to employee training. On oneend, there are companies that throw moneyaway with a plethora of programs that do lit-tle to develop the qualities and behaviors re-quired for success in their particular busi-nesses. On the other end are those firms,usually small to midsized companies, thatnever give a thought to the kinds of trainingthat could, in the long-run, contribute totheir bottom lines. Both are costly mistakes.Enhancing skill levels is only one benefit ofwell-designed, professionally facilitatedtraining programs. Other benefits includeproviding management with the leverageneeded to raise the bar on core competen-cies, performance evaluation metrics, andthe opportunity to convey the message “wevalue you and want to invest in your futureas we expect you to invest in ours.” Youcan’t offer employment for life, but you canoffer opportunities that contribute to a life-time of employability—and that’s somethingthat gets the attention of, and respect from,savvy employees.

During uncertain economic times such asthese, as organizations downsize and mergeto remain competitive, they need to invest intheir human capital more than ever. If acompany really wants to do more with less,

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Employment Relations Today

it has to spend energy and resources to en-sure productivity remains high, employeesare as versatile as possible, and managers aregiven the tools needed to lead an anxious anddemoralized workforce.

Before you start to think this is just anothertrainer making a self-serving pitch for productsor services, allow me to disabuse you of thisnotion. Long ago I moved my own consultingfirm as far from training as I could get becauseI questioned the efficacy of most trainingprograms—due in part to the trend towardcheap (and largely ineffective) public trainingprograms and in part to lack of involvement onthe part of clients contracting for service. Thisarticle is about the pitfalls of training pro-grams, how you can avoid them, and ways tostretch your training budget. Having spentmore than two decades in staff and organiza-tion development, both on the inside and out-side of major corporations, I know where cor-ners can be cut without sacrificing quality. Letme give you ten suggestions for how you cankeep costs down—and even get free services—so that you can keep essential training and de-velopment on your company’s radar screen.

1. Eliminate large-scale training efforts.If you’re one of those companies that of-fers a catalog full of programs and allowsemployees to register for classes of inter-est to them, you are wasting your money.Depending on the length and location ofthe program, the average cost of the con-sultant’s prep time and facilitation is be-tween $2,000 and $3,500 per day, add an-other $50 per person in course materials,

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and then there are room fees, food, audio-visual equipment, and consultant travelexpenses. By the time you are finished,you’re looking at about $12,000 for thetypical two-day program. If 12 people signup, that’s $1,000 per employee. Once youfactor in no-shows, cancellations, etc.(which have become increasingly com-mon), the per capita cost is even higher.

Training TipOffer fewer programs and make certain thecontent of each one is directly aligned withyour firm’s success factors. Don’t give thefacilitator free reign to design the coursecontent. If you’re going to offer a workshopin management skills, tell the facilitator howyou measure a manager’s success and askfor modules that complement those behav-iors. Or if you want to provide sales train-ing, have a select group of sales people sitdown with the facilitator to discuss the spe-cific needs of your group. For more than tenyears I provided a major energy companywith leadership training seminars. Aboutmidway through that time, their executivemanagement changed and had different ex-pectations for their senior leaders. Regard-less of how many requests I made, I couldnot get anyone in the company to meet withme to discuss changing the curriculum. As aresult, the company spent money on a“generic” program that was useful, but nottailored to meet their unique needs.

2. Identify and use community resources.There are local therapists, financial plan-ners, and other subject matter expertsthroughout the community who wouldlove the opportunity to speak before agroup of employed professionals. You don’thave to pay these people—the quid pro

This article is about the pitfalls of training programs, how you can avoid them, and ways to stretch your training budget.

Winter 2003

quo is in the knowledge that some peoplein the audience may later call them fortheir services or purchase their products.In other words, it is free advertising. Youcan often find these folks through articlesin your local newspapers. A few specificways to use their services include:

�� Develop a noon-time speaker’s serieson subjects of interest to your staff.For example, have a therapist discusshow to manage office conflict, or havea financial planner give a presentationon preparing for retirement.

�� Ask a large bookstore to let you knowwhen authors of business books are intown and host your own on-site discus-sion/book-signing events.

�� Invite a local politician to speak withstaff about issues affecting the commu-nity in which you operate.

�� Host a fashion show of business cloth-ing using local retailers.

Training TipMake it clear to the speaker that there canbe no “selling” of services from the plat-form. It is, however, appropriate to allowspeakers to put information material on atable in the back of the room for people topick up on the way out the door or for au-thors to have books available for sale fol-lowing the presentation.

3. Don’t open your wallet too quickly.As president of my own consulting firm, Ifrequently seek opportunities to providegood clients with nonbillable services. Itmay be something as simple as providingtelephone consultation about a pressingmatter or a few one-hour presentations ontopics related to my areas of expertise.

Ten Ways to Stretch Your Training and Development Dollars 21

Even when a core client asks us to do ahalf-day “freebie,” we make every effort toaccommodate the request. There’s no needto feel embarrassed asking each of yourbiggest vendors to provide you with sometraining-related service that you can sharewith your staff. There’s a quid pro quo toevery relationship, and the client/consultantarrangement is just that—a relationship.You should expect that in exchange forbeing a loyal customer you will receive thesame in return from your vendors. Even ifit’s only free advice that you ask for, youget the benefit of the vendors’ expertise,and they know you’ll remember themwhen the business picture changes. If avendor drops you like a hot potato duringlean times, this probably isn’t one youwant to keep in your cadre of consultants.

Training TipBe honest with vendors when the budgetis cut and it is likely that you’ll be usingtheir services less. This will cue them tothe fact that the quid pro quo has changedand different behaviors are expected onboth ends. I had one core client call me tosay that his firm would be using our ser-vices less and that this was not a reflectionon the quality of our services but ratherwas the result of a shift in economics. Hewent on to explain that we would be puton a preferred vendor list and as opportu-nities arose, we could expect to hear fromhim. Consequently, I respect his honestyand will do everything possible to helphim meet his goals within budget.

There’s no need to feel embarrassed asking each of yourbiggest vendors to provide you with some training-relatedservice that you can share with your staff.


4. Don’t pay retail.Any consulting firm that tells you businessis just as good today as it was a year agois blowing smoke. Even the biggies likeMcKinsey & Company and Boston Consult-ing Group are engaging in far differentpricing strategies than they were a yearago. A recent article in the New York Timespointed out that well-established consultingfirms are now accepting shares of the com-pany in exchange for some services. Withclients much more aware of, and carefulabout, how their consulting budgets arebeing spent, the magnitude of availableconsulting projects has diminished. This isespecially true of training and developmentopportunities. It is often the first line itemto be cut when times get tough. As a re-sult, consultants will work with you to se-cure or maintain your valued business.

Training TipNegotiate. Although you shouldn’t expect toget a three-day team-building program forhalf price—you’ll only insult the consultantand damage what may have been a mutu-ally beneficial relationship—there is room tobargain. For example, ask the consultant ifhe or she will throw in the prep time or par-ticipant materials at no charge. Talk aboutyour limited resources and ask the consul-tant to work with you to develop a programor design a project that fits your budget.

5. Request train-the-trainer programs. Remember the old maxim about teachingpeople to fish so they can eat for a life-

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time? When hiring outside consultants,make the contract contingent on sharingtheir expertise with your training and de-velopment staff. This is something thatshould be a regular practice during goodtimes and bad. Some suggestions alongthese lines include:

�� Ask that your own employees be usedas cofacilitators so they can learn theprogram content.

�� Keep in mind that you have paid forthe materials developed for your com-pany. Discuss in advance your right touse these same materials in future pro-grams that are facilitated by internalstaff. This saves considerable researchand development time. The primaryconcern of a consultant is exposureand repeat business, so offer to put hisor her name (or the name of the con-sulting firm) on every page you use.

�� Refuse to pay per participant. Paying aflat daily fee for facilitation allows youto add participants to the program (atno additional charge) who might begood facilitators even if it is not intheir formal job duties. Attending theprogram will give them an idea ofwhether it is a topic they could handle.

�� Ask the consultant to meet with yourown training team to discuss how heor she designs the program and whatresources are available.

Training TipMost good consultants won’t have a prob-lem sharing knowledge and materials be-cause their egos tell them no one can dothe work as well as they can. And this isoften true. Your own people may not havethe depth of experience to make a habit of

When hiring outside consultants, make the contract contingent on sharing their expertise with your trainingand development staff.

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facilitating certain programs, but they cansave you money in additional fees for co-trainers or on money spent for design time.

6. Use internal staff to “shadow” consultants.Not all training and development is done ina workshop or classroom. There are conflict-resolution interventions, organizational de-velopment discussions, retreats, and coach-ing sessions. Another way of developingyour internal consulting staff is to have themparticipate in meetings that outside consul-tants have with your management. Hereagain you get more for your money by devel-oping internal expertise that can be usedthroughout your organization. It also adds tothe credibility of internal consultants. Itwould be shortsighted of the vendor to balkat this because the reality is that internalstaff know their limitations and prefer not todo the work of the outside consultant.

Training TipBe discriminating in the use of “shadows.”Certain situations are confidential or re-quire more privacy than others. For exam-ple, when coaching senior executives, it israrely a good idea to have a third party inthe room. Or for a particularly trickyconflict-resolution intervention where humanresources might be part of the problem, youwon’t get honest participation when thereis what is perceived to be an observer.

7. Make use of local academic institutions.Contact a university with an organizationdevelopment department within the schoolof business or psychology and ask the deanwhether he or she will take a “real-time”project for students. For example, you maybe considering a reorganization where youwould typically use outside consultants.


This is a project that could be a case studyfor a team of graduate students. In manycases, graduate students have had significantbusiness experience in addition to their edu-cation. You benefit not only from their wis-dom and experience, but also from that oftheir professors, who oversee the project.

Similarly, if there are specialty insti-tutes in your community, use them for re-lated projects. I once saved a significantamount of money designing a brochure bygoing to a local art college and asking fora student to help create the piece. Thestudent was able to add it to her portfolio,and I was delighted to work with some-one who could produce creative materialrather than the usual corporate design.

Training TipBefore engaging students to work on is-sues pertinent to your business, be certainto review the parameters of confidential-ity. Many people new to the world of con-sulting are anxious to talk about their ex-periences. It will be your responsibility tooutline the scope of information that canand cannot be shared publicly.

8. Hold staff accountable for the learn-ing experience.The biggest mistake I see, in good timesand bad, is employers throwing money intotraining and development but not holdingpeople accountable for their learning. As aformer trainer, I know that some employeesjust take classes to spend a day out of theoffice. Managers know this too and collude

Another way of developing your internal consulting staff is to have them participate in meetings that outside consultants have with your management.


with the employee by thinking of it as a“perk.” This common practice is no fun forserious trainers and a waste of money forthe company. Consider these ways to holdpeople accountable for their learning:

�� Encourage managers to be involved withemployees’ choices for training by dis-cussing where they see areas for develop-ment and suggesting specific courses oractivities that complement those areas.

�� Ask program participants to prepare abrief presentation to the other mem-bers of their team on what theylearned and how it can be applied tothe current work situation.

�� Sit down with staff members after theyhave participated in any kind of devel-opment activity and discuss the lessonslearned and how the company will ben-efit from the investment. Also use thisas an opportunity to assess the effective-ness of the facilitator and the program.

Training TipTie training programs into your performance-management system. Allow staff membersto take only programs that relate to theirperformance development goals. This doesnot necessarily mean the program has to bedirectly related to the job the employee isdoing now, but to some professional goal ei-ther immediate or long-term. Make sureraises and bonuses are contingent on meet-ing goals outlined in performance reviews.It is a good way to get the person’s atten-tion and maximize the learning experience.

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9. Develop a learning library.It does not have to be complicated or takeup a lot of space. Find a small area whereyou can keep books, videotapes, audiotapes,magazines, and articles for employees tocheck out. You might also consider having akiosk where there is a PC with instructionsfor how to access various topics or re-sources. Although it is not necessary to havea full-time person assigned to the job, youmight ask whether a staff member who isinterested or trained in library science orsome related field would be willing to main-tain the library. Alternatively, check withyour public library to see whether someoneon the library staff could assist you with set-ting up and maintaining the learning library.

Coaching TipWrite to authors asking them to donatecopies of their books or articles to your li-brary. As an author, I am flattered by suchrequests and view them as marketing op-portunities. There are also creators of on-line software related to professional devel-opment who would be willing to make acontribution to your library.

10. Capitalize on internal subject-matterexperts.Your organization undoubtedly has awealth of talent on which you can draw.Identify that talent and convey the mes-sage “each one teach one.” It can be as in-formal as buddying up rookies with sea-soned veterans, instituting a formalmentoring program, or offering workshopswhere employees actually teach trainingprograms in their areas of expertise. By sodoing, you not only increase knowledgethroughout the company, you also build aspirit of cooperative teamwork.

Tie training programs into your performance-managementsystem. Allow staff members to take only programs thatrelate to their performance development goals.

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Training TipContact the Mentoring Group atwww.mentoringgroup.com for informa-tion about how you can teach your staff tobe good mentors and mentees. I haveused their materials with my own clientsand find them to be user-friendly, practi-cal, and easy to implement.

Choosing just two or three of these sugges-tions will convey the critical message to your


workforce that you haven’t forgotten the im-portance of people and teams. Sometimesthat’s all people need to know to give that lit-tle bit of extra effort. No matter how you doit, avoid the tendency to overlook the valueof maintaining training and development pro-grams during tough economic times. Now,more than ever, people need to know thatyou have their best interests at heart andwant to prepare them to meet the challengesof their current—and future—jobs.

Lois P. Frankel, Ph.D., is president of Corporate Coaching International, a Pasadena,California-based consulting firm specializing in executive coaching, team building, andorganization development. She is also the author of the book Overcoming Your Strengths:8 Reasons Why Successful People Derail and How to Get Back on Track. She may becontacted via e-mail at [email protected].

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Ten ways to stretch your training and development dollars