We understand that for companies, outsourcing their training is a big decision due to the implications of such a partnership. Therefore we have created a list of 4 things you should consider as a handy guide to ensure your outsourcing strategy is a success!
Targets
Before making this major decision you should really ask yourself why you are outsourcing your training and what you want to happen from doing it. Often, big decisions such as these are pegged as ineffective or the companies do not know the effectiveness of the strategy at all as there was no tangible goals given to start with. Is your main aim to decrease costs? Then say what percentage you want to save. Are you trying to increase quality? Then you should have a satisfaction rating or another key metric in your mind that you want to achieve.
The other 2 mistakes people make with these targets are measurement and communication. Once you have set these targets, you have to make sure you measure the relevant figures – or else how will you know if the strategy has worked? Regular reviews are also recommended so that changes can be made if figures aren’t matching up or maybe alterations if they are over performing. Finally – make sure you communicate these targets with the outsourcing company. All parties should know what is expected of the arrangement before it begins so that everyone is on the same page and there can be no disagreement about what was expected.
Research
Outsourcing your training is a big decision and shouldn’t be taken lightly. Therefore you should carry out a substantial amount of research on the training market before deciding who to work with. Markets are a lot more open than they used to be, with customer reviews and comparison sites more available than ever. So make sure you collate and compare as much information as possible about any potential suppliers. Pass rates, satisfaction rates, client reviews, trainer experience amongst others should all be considered key performance indicators.
This research not only will help you find the best fit for your organisation, but can actually help you to drive prices down further. By knowing more about the market and possible alternatives, you will give yourself more power when negotiating deals with the supplier. This will give you more chance of getting a lower price. Remember though the key to negotiation is for both parties to feel happy with the result – you don’t want to make your supplier unhappy by forcing an unfair price on them.
Suitability
How suitable is the supplier and even the whole idea of outsourcing your training to your company? Some companies are happy to outsource large parts of their business as they understand the importance of concentrating on key capabilities and using the strengths of other organisations to gain competitive advantages. However some organisations like to retain large amounts of power in all of their processes in order to guarantee quality – something that is very understandable in certain situations. So is your company ready for this kind of relationship? If so, how much supervision and control will your company want to retain and how much will they be happy to let go?
In terms of the suppliers themselves – how suitable are they for you? A decent working relationship is crucial in partnerships such as this as you are relying on them on a good amount of things you are personally responsible for. So do you feel you can trust the person you are working with? Is the way this organisation works (maybe they have a laissez-faire attitude to aspects of business or maybe they are very meticulous about everything they do) going to suit well with you and your company? These things should be considered near the beginning of the process as they can become major problems later on.
Scale
You need to decide to what level you want to outsource your training. You may well just want to outsource at a very small scale and allow the training company to take control of the searching or administration process of training booking. Conversely, you may well be looking for a large scale operation where there is heavy integration between the companies, Training Needs Analysis’ carried out and they actually help identify your training needs accordingly. There is no wrong answer here as each scenario will be better suited for different companies who are in different situations.
Different preparations will be made depending on this decision. Training sourcing and administration duties may well just require a simple system whereby staff send their requirements onto managers who then decide which to forward onto the outsourced company. However the more integrated solution will require a lot more access to information on the supplier’s side as well as in-depth meetings. Decide what scale is best for your company. Unlike the other considerations however, this can be changed depending on how early results go.
If you take these 4 aspects into consideration before outsourcing your training it will greatly increase the chance of the relationship working out for all parties involved. Outsourcing training can be a fantastic way of saving money as well as increasing quality but only if done correctly. So make sure you prepare all that you can before doing so.
