In-House vs. Outsourced Training: Which One is Right for Your Organization?
When it comes to employee training, your organization has the option of providing
training in-house or outsourcing to a third-party provider. Each approach has its pros and cons, and choosing the right one depends on several factors. In this article, we explore the differences between in-house and outsourced training and provide tips on how to choose the right approach for your organization.
You can start by asking yourself some fundamental questions about your training goals:
- What is the training for?
- What are the desired results?
Depending on what your priorities are, you can see which form of training aligns with the needs of your business or organization.
Some general priorities probably include:
- Improvements to your employees’ skills and understanding of the business.
- Linking training to the areas of growth your business needs.
What are the advantages of in-house training?
Customization: In-house training can be customized to meet the specific needs of your company and its employees. The training can be designed to address the specific skills, knowledge, and competencies required for the job, ensuring your employees are learning relevant and useful information.
Cost-effective: It can be more cost-effective than outsourcing training to external providers, as it eliminates the need to pay for external trainers and such things as travel expenses and venue hire.
Convenience: In-house training can be delivered at a time and location that is convenient for your employees. It can therefore minimize disruptions to work schedules and reduce the amount of time, travel expenses, and other extraneous costs.
Consistency: It can ensure that all employees receive the same training and information, which can help to guarantee consistency in practices, procedures, and policies across your organization.
Improved morale: In-house training can clearly demonstrate to your employees that you are invested in their professional development. This can improve employee morale, engagement, and retention, and give the employees a sense of their future with your company.
Stronger company culture: It can reinforce your company’s values, vision, and mission, helping to build a stronger company culture and sense of community among employees.
Greater control: It can give your company greater control over the content, quality, and delivery of training. It can ensure that the training meets your specific needs and standards.
Continuing professional development: Personnel from within your company can be instructors. They can convey their understanding, experience, and know-how. It can be a creative way to make training content easy to understand and improve skills for both trainees and instructor. Overall, in-house training can be a valuable tool for companies looking to improve the skills and knowledge of their employees and enhance the overall performance of their organization.
What are the disadvantages of in-house training?
Whilst In-house Training has many advantages, there are also some potential disadvantages that you should consider.
Limited expertise: Your in-house trainers may not have the same level of expertise and experience as external trainers who specialize in specific topics or industries.
Limited resources: In-house training may be limited by the resources and facilities available to you, which could impact the quality and effectiveness of the training.
Lack of objectivity: In-house trainers may have a biased perspective, which could limit the range of ideas and perspectives shared in the training.
Insufficient time: In-house training may be seen as a low priority for you. As a result, employees may not have sufficient time to fully engage in the training.
Limited networking opportunities: In-house training may limit the opportunities for your employees to network with professionals from other organizations and industries.
Lack of variety: It might not provide the same level of variety and exposure to new ideas and best practices as external training programs.
Potential distractions: In-house training may be disrupted by daily work activities and distractions, which could impact the quality and effectiveness of the training. It’s important to consider these potential disadvantages when deciding whether in-house training is the right choice for your business. Companies should carefully evaluate their training needs and resources to determine whether in-house training is the most effective option.
What are the advantages of outsourced training?
Now, we come to the alternative. The chance to outsource training for your company brings with it many considerations that echo those of in-house training.
Expertise: Outsourced training providers often specialize in a particular area or subject. They have expertise and experience in delivering training programs in that area. This means that your employees can benefit from the latest knowledge and best practices in the field.
Cost-effectiveness: Outsourcing training can be more cost-effective than creating and delivering training programs in-house. This is because training providers can leverage economies of scale and spread their costs across multiple clients.
Flexibility: Outsourced training providers offer flexible training solutions that can be tailored to meet the specific needs of your business. They can also provide training at a time and place that is most convenient for your employees.
Reduced administrative burden: Outsourced training providers take care of all the administrative tasks associated with training, such as scheduling, logistics, and materials. This allows you to focus on running your business while the training provider takes care of the details.
Increased employee engagement: Outsourced training providers can deliver training in a variety of formats, including online, in-person, and blended. This allows employees to choose the format that works best for them, which can increase their engagement with the training program. So, outsourcing training can provide your business with a cost-effective, flexible, and high-quality training solution that can help your employees develop the skills they need to succeed.
What are the disadvantages of outsourced training?
While there are many advantages to outsourcing training for your business, there are also some potential disadvantages to consider. These include:
Loss of control: Outsourcing training means that you are entrusting an external provider to deliver training to your employees. This can result in a loss of control over the training process, which may be a concern for some businesses.
Quality concerns: While outsourced training providers are often highly experienced and qualified, there is always the risk that the quality of training may not meet your expectations. This can be a particular concern if you are outsourcing training in a specialized or technical area.
Lack of customization: While outsourced training providers can often tailor their training programs to meet the needs of your business, there may still be limitations on how much customization is possible. This may concern you if you have very specific training needs or if you want the training to be closely aligned with your business goals and objectives.
Communication challenges: When working with an external training provider, there may be communication challenges. This could include difficulties in communicating your specific training needs, or challenges in ensuring that the training provider is delivering the training in a way that is aligned with your expectations.
Cost: While outsourcing training can be a cost-effective option, it may not always be the cheapest option. This may be a concern if you have a limited training budget or if you are looking to minimize your training costs as much as possible.
While outsourcing training can offer many benefits, it’s important to carefully consider the potential drawbacks before deciding whether it’s the right choice for your business.
Let's cover the options...
So, to summarize, look at your options...
Align the training with your business and employee needs. What the level are your trainees? Onboarding, for example. New employees require the insight from an in-house instructor.
Outsourcing might be the best solution for specific training, such as learning a new piece of software.
Who is the training provider? What is their primary focus – educational or commercial? From a commercial perspective (they sold you the software, for example) the priority could be to sell you more product. With an education and training specialist the focus is more learner centered.
You can task your HR team to look at key areas of need...
Quality control
Cost-effectiveness
Talent management
Scalability
Performance and business goals.
Keep in mind the result that you require. Is it short or long-term? Do you need to blend the training with your organization’s regular schedule? Decide when and where you might need to hire in an external group or rely on your in-house talent. Look for endorsements and recommendations from other organizations in your industry and network to see what’s on offer and who is out there supplying solutions.
