A paradox exists for small businesses when they experience rapid growth in their employee count, increasing from 10-50 employees. The “explosion” of it is the demand placed on them for training their growing work force.
At the same time, the amount of money given to that business for employee training remains constant, resulting in 40% skill gaps, and a corresponding increase of 24% in their turnover rates.
To combat these challenges, SMBs should look at using digital technologies, micro-learning, and/or artificial intelligence systems for employee training to create a cost-effective method of training their employees while maintaining a return on investment that is four times the investment needed to create the training program, and without needing additional employees or money to do so.
This guide will provide you with seven very practical ways that you can use training methods effectively, in accordance with 2025 benchmarks for SMBs, to increase the training of your employees from three to five times while decreasing your training costs by 40%-60%.
Why Scaling Training Matters for SMBs
Statistically, sales are very high among companies that invest in their employees through training. For example, SMBs that invest in their employees through training report that they make a profit margin that is 24% higher than companies that do not.
Additionally, SMBs report a 218% increase in the amount of revenue that they make from sales to their customers as a result of investing in their employees. Seventy percent of SMBs have also reported that they struggle to pay for training when the number of employees they need to train grows.
Traditional forms of training, such as in-person instructional sessions, typically cost SMBs approximately $1,200 per employee, per year; whereas digital forms of training typically cost around $150 per employee, per year for a cost savings of approximately 90%.
Additionally, SMBs that use analytics-based programs to track and measure the success of their training create a return on investment that is an average of 353%, therefore effectively proving that a company can create programs that train their employees and scale at the same time without additional expenses or a significant increase in operational costs.
Strategy 1: Adopt Scalable LMS Platforms
There are a number of LMS solutions available to SMBs through cloud-based services like SkillTriks, as well as free and open source options, allowing SMBs to provide unlimited access to their employees for a set fee, which equates to an unlimited number of employees and a decrease in the operational costs associated with providing a designated amount of training to their employees.
Pros/Cons: The advantages of utilizing LMSs include an approximate 90% cost savings, the ability of employees to access their training materials from any mobile device, a simplified method of tracking and analyzing the training efforts of employee(s) through automated reporting tools, and an approximately 55% time savings in the time required to onboard new employees.
The disadvantages of utilizing LMSs include the time required to set up an LMS, which can take approximately 1-2 weeks. However, this disadvantage can be resolved by utilizing pre-created templates.
Data collected from SMB’s indicates a 40% increase in employee productivity after they implement an LMS.
Additional read:
Top 10 Corporate Learning Challenges SMBs Face (And Practical Fixes)
Strategy 2: Switch to Microlearning Modules
Break training into 5-10 min bites: 80% completion vs 20% traditional, at 50% less dev cost. Platforms auto-deliver via paths
| Approach | Cost/Employee | Completion | Retention |
|---|---|---|---|
| Long Courses | $300-500 | 20% | 40% |
| Microlearning | $50-100 | 80% | 17% higher |
Strategy 3: Leverage User-Generated Content
Peer-created videos/quizzes: 70% cut in dev time and improved engagement through ownership.
Process:
- Templates/guidelines
- Rewards for premier content
- Curated content in LMS
Strategy 4: Implement Peer-to-Peer Learning
Pair seasoned with newbie employees, there’s 50% faster ramp-up with no additional training costs. Tools match employees based on their respective skillset. Benefits of this include, 70% increase in engagement, 2x increase in knowledge retention.
Strategy 5: Use AI Chatbots for On-Demand Support
Utilizing AI tutoring provides constant 24/7 support and reduces the need for training/teaching staff by 80%, and reduces drop-off rates by 50%. Integration into LMS costs $10-$20/user/month.
Strategy 6: Gamification and Spaced Repetition
Leader boards/badges increase completion rates by 48%, and algorithms will resend content (which costs next to nothing) and it is scalable infinitely.
Strategy 7: Outsource Content Libraries
Preconfigured courses ($5-15/user/month): compliance, sales, soft skills, etc., are ready to beused and automatically updated.
