Can you go too far with online training?

Online training tools save money, but in-person training opportunities may build more employee loyalty. That could affect employee retention as the economy recovers and IT organizations struggle to retain talent.

This week I spoke with IT executives and staff at two large corporations with very different training strategies.

At Company A, 25% of IT training dollars went to online services and 75% to in-person training (class, conferences, etc.). At Company B the ratio was flipped: 25% went for in-person training and 75% for online.

The two organizations' per employee spending on training differed markedly: Company A spent $2,000 per employee for training last year, for such things as off-site conferences and on-site, in-person technical training. Company B spent just $100 per employee. Clearly, using online training saves money. But is it of the same value to employees, when the opportunity for travel, social interaction and engagement is taken out of the equation?

When asked about what makes their companies great to work for, an IT staff person at Company A brought up training opportunities. The staff person at Company B did not mention them.

"I've been to a few conferences and talk to our peers and what we offer to our employees is a great package. Most employees feel that they have an opportunity to learn," the staff person at Company A said.

"We're not opposed to Web training," the CIO added. "It just seems that more of what we needed has been in person type classes."

The turnover rate last year for Company A was under 10%. For Company B the number was over 20%. To be sure many other factors influenced those rates, including the economy and the sectors each business operates in.

But it makes one wonder: Does tipping the scales too far toward online training produce short term savings at a long term cost?