There are many ways professional videos can boost your business and increase your bottom line. One reason film is such an effective business tool is that, in addition to channelling revenue, it can also save your company time and money. In recent years, the marketing industry has tapped into the wide-ranging benefits video brings to the table, as reported by Forbes and other leading business news sources. But, there are additional ways of incorporating video that will benefit your business, other than your company’s marketing strategies—ways you may not have considered. Training videos can be used to conserve company resources while educating employees and consumers.
Is Training Draining Your Company Finances?
Imagine you hired a trainer for your company to teach a class of newly-recruited employees. Your company must pay the trainer for the time they spend with your employees. You might also be responsible for the trainer’s travel expenses, which could include transportation costs, as well as overnight accommodations for the duration of the training. On top of the trainer’s cost and related expenses, you’ll pay the employees for their time participating in the class. This is standard procedure since they’re learning professional material that they will use in their work—work they haven’t started performing, so you’re also not making back any of the costs of training yet.
In addition to these costs, you’d be responsible for the cost of training materials such as computers for assessments, practice, etc. The trainer might require an overhead projector, whiteboard, or additional presentation materials. Given the high costs of instructor-led training, it’s not surprising the switch to video training courses could save your company a substantial amount of money. In 2013, the International Journal of Advanced Research reported that corporations save between 50-70% when they replace instructor-led training with e-learning. An analysis by Forrester Research reports that within just one year, companies are likely to start seeing an ROI when they switch to online video-based learning.
Real World Reports of Big Financial Savings
To wrap your head around the savings you could reap through video training, you don’t need to resort to purely hypothetical situations. Plenty of big-name corporations have publicly reported the benefits they experienced by making this switch. Microsoft reports that implementing a video learning program resulted in a total of costs saved/avoided totalling around $13.9 million dollars per year with an ROI of 569%. The computer giant used video to cut classroom training costs from $320 per person down to just $17 dollars, yielding a savings of $303 dollars per person. Another familiar computer company, IBM, switched to training videos after realizing that 40% of their training costs was spent on travel and lodging. Within the first two years, the company reported a savings of $579 million dollars.
Video Savings Equal More Than Money
While the financial benefits alone warrant a second look at one’s training procedures, that’s not the only motivator for change. Training videos can save your company, and your employees, a significant amount of time as well. Ernst and Young reportedly found that by switching to video, they were able to reduce training time by over 50%. Orlando-based video production company Vibrant Media Productions recently reported research showing sales teams that use video learning save an average of 35% in in-person training time. Employees can train at their own pace, spend less time away from work, and often refer back to videos as needed.
You may be wondering if a potential shift to video-based training would result in lower quality training. The evidence, however, seems to suggest the opposite is true. A nine-year survey of the research literature in training that was commissioned by the American Psychological Society concluded that trainees learn more using digitally-based instruction than they do with conventional methods of teaching, as measured by higher post-treatment test scores. Specific studies from Fletcher, Kulik, Willett, Yamashita & Anderson all confirm these findings, as reported in the International Journal of Advanced Research. The 2013 Towards Maturity Benchmark Study found that, since beginning their study in 2003, there had been a 96% improvement in the quality of learning and value in the area of digital learning methods. The study also reports that companies experienced a 90% reduction in training costs over the course of the study due to changing training procedures.
Research and reports clearly support the advantages of video training over traditional employee training methods. Not only do businesses report substantial financial savings, they also experience time savings and a greater quality of instruction. With all the benefits your business stands to gain, why not give training videos a try and find out for yourself if it can help your business? You could be saving money and time while equipping your employees with a more secure foundation of knowledge, preparing them to be better assets for your company.