The Ultimate SME Guide to Employee Training: 11 Affordable Ways to Upskill Your Workforce

It's easy to overlook the importance of employee training in small businesses. 

Limited resources, time, and funds can make it challenging to prioritize L&D, especially if you don't have a dedicated human resources department or learning team to support professional growth. 

But the question is: can your small business afford not to invest in employee training? 

From gaining leadership and soft skills to digital and green skills, investing in skills development will future-proof your organization, retain employees and ensure you stay competitive in the market.

This guide explains the benefits of training for SMEs, typical challenges you might face along the way and 11 affordable ways to upskill your workforce, including expert tips from businesses like yours. 

💪 What are the long-term benefits of employee training for small businesses? 

Still on the fence about whether business training is worth the investment for SMEs?

Consider the following benefits when weighing up this question.

Improved employee productivity and performance 

The Association for Talent Development finds that companies with structured training programs can increase individual employee profitability by 218%.

The same study reveals that these companies enjoyed a 24% higher profit margin than those who spent less on employee development. 

Increased employee retention 

LinkedIn says a whopping 94% of employees will stay with an employer longer if they offer growth opportunities.

That's hard to argue with and also saves money on recruitment costs. 

Enhanced employer branding 

In the era of the Great Resignation, job seekers are looking for the obvious: more money to cope with the increasing cost of living.

But besides the appeal of good, old-fashioned cash, 20% of candidates are actively searching for roles that will offer career growth opportunities, according to a Jobvite survey. 

Plus, SMEs demonstrating they're committed to training will boost their employer brand and attract the best of the best. 

Keeping pace with industry change

Employee development can help SMEs keep up with the rapid pace of change in respective industries. Staying ahead of the curve means having a workforce equipped to adapt and respond quickly to new technology and the broader business climate.

🤯 7 Employee training challenges in small businesses

But learning and development can be daunting for SME owners and managers.

Many cite the following as their biggest barriers to proper training.

No dedicated L&D team 

With a limited headcount, many SMEs don't have the luxury of a dedicated HR or L&D team to research, develop, and manage quality training programs. 

Instead, they have to rely on regular managers and business leaders who may not be well-versed in training techniques. 

Limited time and money 

Small business owners lack the time or money for formal training. They must juggle other pressing deadlines and urgent tasks that add value to the business. 

As a result, training can be stop-start, prioritized for one month, and then forgotten about for several months after. 

Michael Nemeroff, CEO and Co-Founder of apparel company Rush Order Tees, suggests how to ensure training consistency:

"The way that we overcame this challenge was to set our budget and schedule for training at the beginning of the year. By taking the time to allocate resources and lay out a plan that covered the entire year, we were able to ensure that training happened regularly, rather than just once or twice per year as it had before."

Hard to keep pace with change 

There are always fast-paced industry changes to keep up with, from advancements in technology, shifts in consumer behavior, changes in regulations, and the emergence of new competitors. One way to address this challenge is to create a flexible training program that fits your needs. 

Challenging to appraise skills accurately 

Small business owners must accurately identify employees' strengths and weaknesses, highlighting skill gaps and specific areas for growth. This task requires a deep understanding of job responsibilities and the skills and knowledge necessary for effective performance.  

This task can be time-consuming and demanding.

Still, performance management and employee development plans are essential for the growth and success of the business.

Achieving buy-in 

Training and development can only be a roaring success if all employees are on board with the program. SME owners must ensure buy-in from the entire team and provide ample resources to support training initiatives. ‍

Ken Marshall, Chief Growth Officer at Revenuezen, explains how this commitment promotes a positive, ongoing relationship with L&D. 

"I would say the number one challenge for training employees is achieving the buy-in necessary to help the training trigger a permanent behavioral change. If an employee doesn't understand or agree with something, they aren't going to be fully bought in, and the training won't stick. 

It's one thing to intimidate or coerce a team member into performing a task with a checklist. It's another thing to teach and coach that same team member to download the information and form a habit around the training." 

Improving learning engagement 

Similarly, suppose previous training efforts have failed. In that case, small business owners need to examine why engagement levels are low and how they can improve. 

Some strategies involve simply changing the delivery method or schedule of training. However, it could also include using more sophisticated techniques such as micro-learning, virtual reality, or gamification features. 

Chief Marketing Officer Alvin Wei recaps a challenging experience with L&D at SEO Ant and the solution they used to create a vibrant and committed learning culture. 

"Some employees were disengaged cognitively, emotionally, and behaviorally. Most didn't care to learn since they found the courses pointless and uninteresting.

The main issue was that the training programs were overly general and needed to account for contextual elements like age, culture, expertise, or rank. Most of them stopped paying attention in class, ceased actively learning, and stubbornly rejected any possibilities that came their way. I added realistic, relatable scenarios to the curriculum to challenge their problem-solving skills." 

Adapting to remote learning 

A new challenge for businesses is adapting to a remote learning environment. 

Adapting to remote learning can require investments in technology, online training providers, and communication methods such as video conferencing, webinars, and virtual events to create an effective learning experience beyond the traditional classroom. ‍

Lisa Richards, CEO and Creator of the Candida Diet, tells us: 

"We've had to work endlessly to figure out how to keep our employees engaged while learning and working remotely. It's also proven difficult to personalize our learning strategies when all the training is happening remotely.

Additionally, the lack of face-to-face supervision and the increased likelihood of technical challenges and distractions make remote training even more difficult." 

🧐 7 Specific training needs of small businesses

No two SMEs are created equal, and training needs will vary depending on business size, industry, and objectives. However, here are eight typical training areas your business may need to focus on.

Upskilling 

To remain competitive, employees must stay up-to-date with additional training that will add value to the business while enhancing professional development. Your upskilling program might include courses in:

• technology; 
• communication; 
• soft skills;
• industry-specific knowledge.

Diversity

Diversity training aims to educate employees about different cultures, backgrounds, and perspectives, including how they impact the workplace. It also identifies unconscious biases and addresses any barriers or discrimination that may be present. DEI training can take many forms, including: 

• workshops; 
• webinars; 
• online modules; 
• microlearning.

➡️ Check out our DEI learning template to get started.

Workplace training policies 

Every business should have a staff handbook, including policies and guidelines that employees must follow to ensure the organization's safety, fairness, and success. Training employees on policies like the following will maintain a harmonious and effective workplace:

• company culture; 
• absences; 
• systems training;  
• workplace harassment; 
• whistleblowing; 
• communication expectations. 

Compliance 

Depending on your industry, you may need to adhere to regulations by providing appropriate security or compliance training for your staff on topics like: 

• GDPR;
• cybersecurity; 
• health and safety; 
• anti-terrorism; 
• money laundering; 
• data breaches. 

➡️ Need an example? Check out our data security training course.

Product and sales 

To win more clients and boost your bottom line, your sales and marketing team must understand the inside out of your product, services, competitive advantages, and pricing. 

Streamline your training on customer service techniques and your products' basic features or benefits to close more deals and better serve your customers.

Productivity 

Effective time management helps employees be more efficient and productive, increasing output and revenue. Plus, employees can accomplish more in less time by learning how to prioritize tasks, set goals, and eliminate distractions. 

So, productivity training will boost the bottom line by increasing revenue and reducing costs. 

➡️ Check out more productivity tips in our free productivity training course.

Leadership and succession planning 

Leadership and succession planning training will ensure that your small business continues to operate effectively if your key leaders are absent or incapacitated. 

The pool of potential leaders may be smaller in an SME. Still, someone should always be available to step into a leadership role when required.

This proactive step will safeguard the future of your small biz and make it more resilient to unexpected change.

➡️ Learn how to make decisions and lead with confidence using our leadership microlessons. 

💰11 Affordable training tips for SMEs

Employee training doesn't need to break the bank. 

However, if budget is a consideration for your business, check out these 11 inexpensive ways to keep your team progressing. 

Provide competency-based learning

Competency-based learning helps employees build the skills they need to succeed. Base this strategy on assessing the knowledge, skills, and abilities required to fulfill their roles. It's also integral when training for new job roles or promotions. 

The main benefit of competency learning is that you only zone in on the skills you need rather than overwhelming your employees with less relevant topics you won't need in your small business. 

Encourage cross-training 

Cross-training is a method of pairing weaker and stronger employees. The aim is for each pair to reach a similar proficiency level, so you can create a cover for your employees and eliminate productivity gaps during a staffing shortage or in the event of a disaster.

And if employees have different roles? 

Cross-training can still be beneficial because your employees will develop new skills by observing others in their respective areas of the business. The result will be a more resilient workforce. 

Use free resources 

If you have a zero-dollar budget for training, you can still develop your employees by making the most of free courses. ‍

Rafal Mlodzki, CEO of US Passport Photo, explains:

"There are many free training resources available, such as webinars, online courses, and tutorials. We invested in some of them and created an open catalog of courses that our employees can use at any time." 

Host webinars, lectures, and remote conferences 

For distributed SMEs, online webinars and lectures are a great way to unify your team at a low cost and without covering the same ground over and again. 

Jarir Mallah, an HR specialist at Ling, a gamified language app, explains: 

"Working at a company that largely hires remote team members across time zones, our greatest challenge is achieving efficient training sessions. It's important to avoid the need to repeat training processes.

Wherever possible, we ask our home base team to schedule training during times that will gain the most attendance. For those employees that may miss sessions, we record them using screen recorders or via video. These are uploaded onto the cloud and shared." 

Remote training is a cost-effective alternative to classroom-based courses for a few reasons:

• Lower costs: Remote training eliminates the need for travel and lodging expenses, costly classroom rentals, or other training facilities.
• Increased flexibility: Employees participate in training from anywhere, anytime, which can significantly benefit employees with scheduling constraints.
• Greater reach: Many employees can access remote training, regardless of location. 
• Self-paced: Employees complete the training at their own pace and may revisit the material as required.

Reach out to your network 

Suppose external training is out of the question. Why not tap into the valuable knowledge pool you already have in-house? 

Rafal Mlodzki explains, "We encourage employees to share their skills and knowledge with their colleagues through mentoring or informal training sessions."

Tip #1: Reach out to internal subject matter experts and have them share their wisdom with the rest of your workforce. 

Tip #2: Use case studies to demonstrate how to serve your customers best. 

Focus on one topic at a time 

It's more efficient for employees to hone in on one skill at a time rather than try to learn multiple skills simultaneously. And spaced repetition of a single topic supports knowledge retention. 

Psychologist Hermann Ebbinghaus created the 'Forgetting Curve' to demonstrate the exponential drop in memory recall over time.

A practical way to incorporate spaced repetition into your daily workflow is to align your training with the competencies required for each role in your organization. Put them in priority order, and go through the training list, one at a time. 

Tailor learning content 

Any workforce is made up of employees with different inherent learning styles.

Typical examples include: 

• Visual learners: those who prefer to learn through images, studies, and diagrams.
• Auditory learners: those who respond best to verbal instruction such as lectures, podcasts, or tutorials.
• Reading and writing learners: those who learn by quietly reading material, making notes, and rewriting sections to reinforce their understanding.
• Kinesthetic: those who love getting to grips with hands-on training exercises and activities to physically involve them.

Lucjan Suski, CEO & Co-Founder of Surfer, reveals how to tailor a training program based on the individual's natural learning behavior. 

"Every employee has different learning styles, strengths, and weaknesses, so it can be difficult to find a single approach that works for everyone. To overcome this challenge, I have implemented an individualized approach—focusing on developing each team member's skills according to their abilities and needs. This way, everyone receives the specific training they need while still being able to work together effectively as a team." 

Incorporate innovative learning formats 

Tying in with the above, different learning formats can slot in with specific learning styles. For example: 

• Interactive quizzes: can engage visual and auditory learners 
• Microlearning: for bite-sized chunks of written information in the flow of work 
• On-the-job training: to suit kinesthetic learners. 

➡️ Check out our guide to setting up a customized training management system.

Learn as a group 

Peer-based training or live sessions should be encouraged to foster team spirit and normalize a culture of continuous learning. 

Denise Hemke, Chief Product Officer at Checkr, outlines how "making the entire team attend courses together gives the chance to motivate each other, reach out for help from one another when needed, and compete against other. It helps them stay on track and removes a part of the remoteness of the learning."

Example: Zavvy worked with Freeletics, an app-based AI coach, to revamp its L&D program. We introduced People Manager Roundtables—a collaborative learning activity to share current best practices and brainstorm leadership challenges. 

➡️ Our Freeletics case study details how our learning experience team created a customized program incorporating practical input from those in the know. 

Involve employees in their learning journey  

Want your employees to commit to your training plans? ‍

Adrienne Couch, Human Resources Analyst at LLC.Services, recommends gathering feedback to put employees front and center of their learning experience:  

"Instead of just telling them what they should learn, I prefer to ask their opinions on what would be most useful to them. Not only does this help me tailor the training to their specific needs, but it also makes them feel like they have a say in their own development."

Incentivize employees to complete their training 

If gaining their input isn't enough, a little incentive sweetener could help nudge reluctant employees in the right direction. It doesn't need to be expensive—a gift card for the first employee to complete the training can be enough to get the competitive juices flowing. 

Lucjan Suski, CEO & Co-Founder of Surfer, describes their experience: 

"To ensure that everyone is engaged and learning, I have implemented a system of rewards for completing training successfully or showing an increase in knowledge after each training session. This encourages team members to take their training seriously and motivates them to learn more about their roles and business operations as a whole."

🪜 Create your first employee training program In 7 easy steps

Employee training programs are straightforward to build when you follow the training checklist below.

Identify the training needs of your organization 

Start by creating a priority list of everything you want to achieve with your training program. 

You could include anything from enhancing customer service, improving job performance and productivity, or introducing new technical skills into the workplace.

Set training goals and objectives for the team, and use them as a roadmap for achieving your desired outcome.

Determine the available budget and resources 

It's time to set a training budget and understand your available resources. Budgeting will give you an understanding of the types of training materials and technologies you can access and any external training providers who can support your team.

Ask questions like: 

• How much money should you allocate to create a program that meets your training needs? 
• How many hours can you spare for training? 
• Should some training topics take priority over others? 
• Do you have access to internal trainers? 
• Will you need to train a senior employee first so they can roll training out to the rest of your workforce? 

Choose your training methods 

Select the different methods and materials you'll use to deliver training. You could include: 

• traditional instructor-led courses;
• custom courses online;
• interactive workshops;
• seminars;
• microlearning.

Develop a training plan 

An employee training plan should include your timeline, resources, materials, and training methods. 

🏋️‍♀️ Depending on your organizational needs, Zavvy offers a wide range of training plan templates to kickstart your L&D program.

Communicate your training initiative

Time to spread the word. 

Let employees know about your training program and what it will involve. You can do it through a company-wide email, intranet post, performance review, or during a 1:1 meeting. 

💡 Remember: explain why training is critical and how it will benefit the organization. 

Most important? Always clarify which parts of the training are mandatory so there's no room for miscommunication.

Roll out your training program

Create a system to track your employees' progress and assign training sessions as required. Ensure everyone is comfortable with the program and understands what's expected. 

Remember: gather regular employee feedback to support your team and provide additional resources or information when needed.

Track progress and course-correct when required 

How will you know if your training route is a hit? 

Set metrics that you can use to measure success, including customer satisfaction scores, employee engagement surveys, or team performance reviews. 

Tip: You may need to report these to key stakeholders or use them to justify your L&D spending for next year. 

➡️ Need inspiration? Check out our comprehensive guide to measuring training effectiveness. 

Adrienne Couch elaborates, "By measuring the success of our training, we can determine which programs are working, and which are not and make adjustments accordingly. This ensures that our training is truly meeting the needs of our employees and, ultimately, growing our business." 

Evaluate training efficacy using a training matrix to give you a birds-eye overview of your small business L&D programs. 

➡️ Zavvy shares specialized training expertise for small businesses 

Zavvy offers innovative learning management software developed by our behavioral scientists to run engaging programs on autopilot. Select advanced training options, including:

• Social learning: improve employee morale and strengthen neural connections with peer-based training. 
• Microlearning: frequent training delivered in bite-sized chunks to complete during break time or in the flow of work. 
• Spaced learning: increase knowledge by up to 50% and boost retention by up to 2 years.

Ready to launch your training process with Zavvy? Book a free demo today.