A Story of Two Companies
Let’s look at the story of two companies – Company A and Company B…
The CEO of Company A discovered that his employees were struggling to adopt a new CRM software they had recently implemented. Additionally, he noticed that many of his managers lacked effective leadership skills. To address these challenges, he purchased an off-the-shelf leadership training course for his managers and directed his employees to complete the free training modules available on the CRM’s website.
A month after completing these trainings, there was little to no measurable improvement in performance. CRM adoption rates remained low, and the managers continued to struggle with leadership challenges, leaving the CEO frustrated and questioning his investment.
Meanwhile, the CEO of Company B faced similar issues but chose a different approach. He hired an instructional designer to analyze the root causes of these challenges and create tailored training solutions for his team. The instructional designer designed a CRM training program that aligned with the company’s workflows and a leadership training course that addressed the specific needs of the managers.
The results were remarkable! Within a month of completing the CRM training, Company B’s employees achieved a 20% increase in CRM adoption rates. Additionally, 40% of the managers demonstrated improved leadership skills, such as better communication and decision-making. The CEO of Company B was delighted with the tangible results and the positive impact on his team’s performance.
The examples above showcase the importance of addressing performance issues through targeted analyses and customized training solutions.
The Power of Customized Training for SMBs
When it comes to small and medium-sized businesses (SMBs), every decision and every dollar spent matters a lot, especially when it comes to investing in employee development. While off-the-shelf training programs may seem like a convenient and cost-effective solution, they often fail to address the unique challenges and goals of your business, which usually makes them a cash drain for your organization. Customized training programs, on the other hand, offer a tailored approach that not only improves employee performance but also delivers a significantly higher return on investment (ROI).
In this article, we’ll try to understand why many SMBs go for off-the-shelf training programs, why they fail, and why customized training programs are the way to go instead.
Why SMBs usually go for Off-the-Shelf Training Programs
Small and medium-sized business owners often feel the pressure to optimize resources, especially when it comes to employee training. With limited budgets and tight schedules, off-the-shelf training programs can seem like an appealing choice for several reasons:
1. Perception of Cost-Effectiveness:
Many SMB owners assume that hiring a performance or training consultant to design a tailored program will be prohibitively expensive. So, instead, they opt for pre-packaged courses that promise quick solutions at a fraction of the cost. At first glance, this seems like a smart financial decision – after all, why spend more when a seemingly similar product is readily available?
2. Convenience and Availability:
Off-the-shelf programs are easy to find and implement. A few clicks and a credit card later, SMBs have access to ready-made courses on leadership, software skills, or customer service. For time-strapped business owners, this simplicity can feel like the fastest path to addressing training needs.
3. Assumption That All Training Is Equal:
There’s often a belief that training is a one-size-fits-all solution. SMB owners might think, If this program works for other companies, why wouldn’t it work for mine? This assumption leads to a reliance on generic content that may not align with their specific challenges or goals.
4. Overlooking Long-Term Value:
The upfront cost of off-the-shelf training often obscures its long-term inefficiencies. SMBs may not immediately recognize that generic training lacks the depth and relevance needed to drive meaningful performance improvements, leading to wasted time and money.
The Reality: Downside of Off-the-Shelf Training Programs
However, what many SMB owners don’t realize is that off-the-shelf training often addresses surface-level issues, leaving deeper performance challenges untouched. While it may seem cost-effective initially, the lack of measurable results can turn it into a hidden expense.
Here are some common limitations of off-the-shelf training programs:
1. Generic Content:
These programs are not tailored to your industry, company culture, or specific performance issues. Employees may struggle to connect the training to their daily tasks.
2. Irrelevant Scenarios:
Off-the-shelf courses often include examples and case studies that do not resonate with your team, making the content less engaging and actionable.
3. Limited Flexibility:
Prepackaged programs do not allow customization, leaving gaps in addressing critical skills or knowledge areas unique to your business.
The result? Employees may complete the training but fail to apply what they’ve learned effectively in their roles, leading to subpar results and a poor ROI.
Why Customized Training is the Way Forward
Customized training programs are designed with your business’s specific needs in mind. They focus on solving targeted performance issues and achieving measurable outcomes. Here’s how they can transform your SMB:
1. Aligned with Business Goals:
- The development of customized training programs starts with understanding your business objectives and aligning the content to support these goals.
- For example, if your goal is to improve customer satisfaction, the training might focus on soft skills like communication and problem-solving.
2. Focused, Crisp, and Hands-on:
- Since customized training programs target specific performance issues, they are usually more succinct and crisp and consist only of training that the employees “really need”.
- In addition, these training programs may also include more hands-on exercises, on-the-job assessments, and the use of job aids, which increase employee performance as well as reduce the required training time, leading to less training expenses for the business.
3. Relevant and Engaging:
- 92% of employees believe well-planned training programs have a positive impact on their overall engagement. (Source) Tailored programs include industry-specific scenarios, real-world examples, and role-specific tasks, making the training more relatable and engaging for employees.
- When employees see how the training directly impacts their work, they are more likely to participate actively and retain knowledge.
4. Enhanced Problem-Solving:
- By addressing specific pain points, such as inefficiencies in processes or gaps in technical skills, customized training helps resolve these issues more effectively than generic programs.
5. Better Knowledge Retention:
- 59% of employees say training improves their overall job performance. (Source) Interactive and targeted learning methods improve information retention, ensuring employees can apply what they’ve learned to their roles effectively.
6. Improved ROI:
- Because customized training targets critical areas and delivers measurable results, it provides a higher ROI.
- Companies with engaged employees are 17% more productive than those without. (Source) Improved employee performance leads to greater efficiency, better customer experiences, and ultimately, higher revenue.
So, Are All Off-the-Shelf Training Programs Bad?
No. While we strongly believe that employee training should always be focused on specific performance goals, we do not believe that all off-the-shelf training programs are inherently bad. In fact, many of these programs offer high-quality content that can be valuable in the right context!
You should consider using an off-the-shelf training program if:
- It aligns well with your overall training plan and is supplemented with other targeted materials, such as exercises, on-the-job assessments, or role-specific performance aids. This ensures the training addresses your employees’ unique needs and drives meaningful outcomes.
- It is intended for compliance training, where the primary goal is to meet regulatory or legal requirements. Off-the-shelf compliance programs often provide standardized and reliable content suitable for fulfilling these needs.
Steps to Implement Customized Training in Your SMB
All right! So, you have decided that you want to get some customized training programs created for your SMB. But how do you start? Here’s a summary of the steps you should take:
1. Identify Performance Gaps:
Assess your business’s current performance metrics and identify areas for improvement. Some examples are increased productivity, improved sales, and better customer service.
2. Collaborate with a Training/Performance Consultant:
Hire a skilled Training/Performance Consultant to help determine the root cause of your performance problems, and come up with a targeted set of solutions to address these issues. This expert will determine if training is actually a possible solution to your problem.
3. Develop and Deliver Training:
Collaborate with the consultant and/or other training development experts to develop this customized training program and deliver it to your employees.
4. Incorporate Feedback:
Gather input from employees to ensure the training addresses their challenges and is practical for their roles.
5. Measure Success:
Track key metrics such as employee performance, efficiency, and ROI to evaluate the effectiveness of the program.
Conclusion
Customized training programs are powerful tools for SMBs. They offer targeted solutions that address specific performance challenges and deliver measurable results. A 2024 study by TalentLMS showed that 80% of employees expect their companies to provide personalized learning tailored to each employee’s individual needs and goals. (Source) While off-the-shelf programs can be useful for compliance training or as supplements, customized training aligns with business goals, engages employees, and drives a higher ROI. By investing in tailored programs, SMBs can empower their teams, enhance productivity, and set the foundation for long-term success.
