When you run a small business, it`s essential to help your team grow and grow – but you also need to make sure that any investment you make in your team is protected. Here, a training contract can help. In this article, we show you exactly how to use a training contract and provide you with a model training agreement written free of charge. At the end of the day, it is the employers who themselves decide to take over the compensation requirements for training. Before sending their team for training, many companies ask their employees to sign a training contract that is designed to reimburse investments in their training if they leave before a certain period of time. Not only would your company not be able to benefit from paid training in the short term, but it could also, in the end, pay again for the same training if it makes a replacement. Factor in the lower costs inherent in any recruitment process and you can see how this could possibly leave a small business in a really difficult position. In reality, many employers are not really going to try to recoup an employee`s training costs. Instead, the agreement serves as a screening tool, Caucci said. The hope is that only serious and committed candidates will agree.
However, if the training contract is properly developed, it would be reasonable to expect the employer to recover a certain proportion of the $2,000. Let`s take a look at an example of training chords in action. If a company spent US$1,000 on training, but the employee resigned the day after the course ended, it would be fair and reasonable to ask the employee to repay the US$1,000 as part of a training agreement. Staff training is an expensive offer. A 2016 training evaluation study showed that for large companies (10,000 employees), annual training budgets are approximately $13 million. Small employers (1,000 euros) spend about $3 million and small businesses spend about $290,000. And that doesn`t take into account the hidden cost of education: the time you take away from dene work, equipment and more.