How To Conduct A Training Needs Analysis To Create A Realistic eLearning Budget

How To Conduct A Training Needs Analysis To Create A Realistic eLearning Budget
Summary: What is a Training Needs Analysis and why is it important when creating a training strategy? Build a realistic eLearning budget in 5 steps!

5 Steps To Conduct A Training Needs Analysis For A Realistic eLearning Budget

Training can change the face of your business. It can help your staff develop their skills, enrich their knowledge base, and give your organization a competitive edge. However, creating an effective training strategy can be a challenging task, especially when budgets are tight. This is where a Training Needs Analysis comes into play. If you perform it correctly, you’ll be able to provide the right training at the right time. In this article, we talk about what a Training Needs Analysis is, why it’s so important in building a realistic eLearning budget, and, most importantly, 5 easy steps to conduct it.

eBook Release: L&D Expense Sheet: How To Calculate eLearning Costs And Stretch Your Budget
eBook Release
L&D Expense Sheet: How To Calculate eLearning Costs And Stretch Your Budget
All the perks that eLearning brings to the table make it the best way for learners to access and retain information. But how do you set a realistic budget and stick to it?

What Is A Training Needs Analysis And Why Do You Need It?

A Training Needs Analysis is a method that determines whether there is a need for training within an organization. It is a tool that businesses, HR departments, and L&D professionals use to boost employee performance and achieve their performance objectives, all while staying within the limits of their eLearning budget. It’s a crucial step that must always precede the eLearning course development process. But what makes it so necessary? Organizations that hesitate to perform a Training Needs Assessment must consider the following benefits.

Firstly, conducting this analysis helps businesses identify problem areas keeping them from achieving their performance objectives. By pinpointing shortcomings and knowledge gaps, management teams can see the bigger picture and make informed strategic decisions regarding overall productivity and growth. More specifically, they can better decide which training options will bring the best and fastest results. As a result, a Training Needs Analysis can help your organization increase Return On Investment by saving you time and money. At the same time, taking the time to address gaps and train your employees drives their performance and significantly decreases turnover rates.

The Three Levels Of A Training Needs Analysis

Training Needs Assessment operates at three levels depending on your requirements: organizational, operational, and individual. Let’s describe each one briefly so that you can decide which one you should use.


Companies use this type of assessment to evaluate the training needs of the entire organization at a macro level. They delve into overarching goals, strategies, and general directions.


At the operational level, employees are evaluated on their knowledge and ability to achieve a specific level of proficiency. It correlates employees’ actual performance to the required standards of their role within the team or department.


At this level, we assess the employee individually and examine whether they perform their tasks as expected. This way, employers get a complete image of the employee’s performance, allowing them to identify individual knowledge gaps and take the appropriate measures to overcome them.

Training Needs Analysis: 5 Easy Steps To Build A Realistic eLearning Budget

Although every company is different, there are 5 steps you can take to conduct a successful Training Needs Assessment before you launch a training program. Let’s see what those steps are and how you can perform them.

1. Determine Needs And Desired Outcomes

If you want your assessment to lead to an achievable and realistic eLearning budget, you must start by setting some goals. Think about what led you to believe that your company must undergo a training program. What are the behaviors or strategies that you want to change? What results are you aiming for? Once you have a clear understanding of the areas that require improvement, you can start prioritizing and putting the allotted budget to good use. At this stage, you must focus on how you can align training options with organizational goals, values, and priorities.

2. Define Roles And Job Behaviors

Once you have identified basic needs and desired outcomes, it is time to determine the relevant job behaviors that are necessary to accomplish these goals. These are the core competencies that your employees need to acquire and develop to boost your business’s efficiency and competitiveness. For example, let’s say that conversion rates have dropped for your sales department. Therefore, you decide that the sales team must work on its persuasive speaking skills. That is the core competency they need to become proficient in to address the problem.

3. Conduct A Gaps Analysis

The next step is to define the knowledge and skill gaps keeping employees from reaching their maximum potential within their roles. This is a very important step, as it allows you to personalize training materials later on. Not all employees have the same strengths and shortcomings, and your training course should reflect that. There are many tools you can use to perform a gaps analysis, such as knowledge assessments, individual interviews, surveys, or on-the-job observation. By the end of it, you’ll have a comprehensive list of skills employees have, must improve, or need to acquire. This way, you can set a realistic eLearning budget to administer targeted learning instead of mindlessly using resources to put all employees through the same training courses.

4. Research Training Options

The weak points you identified in the gaps analysis determine the most suitable and cost-effective training route. Online training offers a plethora of options depending on the complexity, urgency, and scale of your staff’s training needs. For example, a knowledge gap of mild complexity that a few employees come across in their daily schedules can be addressed through microlearning or on-demand learning so that the content can be readily available and easy to complete. On the other hand, for a more complex gap that affects your organization as a whole, you’ll have to turn to large-scale training options, such as all-staff training. Various options affect your budget differently, which is why you must be careful to match them correctly to each training need.

5. Recommend Training Plans

At this point, you should have a complete list of your business’s training objectives and needs, gaps, required job behaviors, and available training options. Therefore, it’s time to utilize this information and craft an effective training strategy that fits your eLearning budget. Start by addressing knowledge gaps that are urgent and important to the overall success of your business. Create a timeline, recommend a training plan, and set a realistic budget. Then, you can move down the priority scale to simpler problems that don’t require immediate attention. This way, you’ll effectively utilize resources and achieve maximum ROI.

Wrapping Up...

A Training Needs Analysis is a crucial step in the process of training your employees. It helps you create a realistic eLearning budget and ensures that all knowledge gaps are identified and properly addressed. Although training needs differ, the steps we analyze in this article are suitable for anyone who wants to create an effective training strategy for their organization. With these 5 simple steps, you can identify problem areas in your business and take appropriate action to boost employee performance and overall success.

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