CLOUD COMPUTING

Organizations Profit from the Real Benefits of Virtual Training

Alison Diana | Date: 05-24-11 | Comments

Employees save time, and organizations save money, with reusable, auditable online classes.

A steadily increasing number of organizations, ranging from the military to logistics providers, are using virtual training for everything from hiring to keeping employees current on new corporate policies, technologies and regulatory issues.

Most organizations are investing in virtual training primarily to reduce travel costs and hours. In fact, 88 percent of human resource professionals surveyed by ON24, a developer of virtual training solutions, said they like virtual training because it lowers overall training costs, while 77 percent agreed that the travel time required to attend physical training is cumbersome and takes up valuable time. In addition, 85 percent said corporate training is more efficient when conducted virtually, the report said.

"We're still in an economy where cost-cutting is top of mind for everybody," said Mark Szelyeni, ON24's senior director of Webcasting, in an interview. "The presenter doesn't have to move. The attendee doesn't have to move, either. It's a win-win when you have that convenience factor on both sides."

Sodexo estimates it has saved about $1.4 million through its use of ON24's virtual training solution at its virtual training center. (Source: ON24)

Sodexo, a global food services and facilities management company, estimates it has saved about $1.4 million through its use of ON24's hosted virtual training solution. The technology, which includes social media and chat tools, also helps the widespread business foster team spirit and information exchanges, said Lorna Donatone, Sodexo's chief operating officer and Education Market president.

As a component of its far-reaching Strategy 2015, Adidas is developing e-learning courses for its employees worldwide. The sporting-goods company plans to reduce its environmental footprint by at least 15 percent by 2015, relative to sales, according to Adidas, and virtual training is part of an initiative that includes expanded use of virtualization, water- and light-savings, and new green packaging materials.

United Parcel Service (UPS) is using virtual training for prospective employees, announcing in 2010 that those hoping to become UPS drivers must pass pre-employment training, which includes virtual instruction. The new methods, designed by UPS and developers at Virginia Tech, are working: In the past, less than 70 percent of candidates passed the UPS driver tests, but having taken the virtual training, more than 90 percent pass, according to the company. The improved success rate is critical as UPS over the next five years will need to replace 25,000 drivers who are retiring.

The armed forces have been a longtime user of virtual training, tapping video game-like software to supplement field and classroom training. By 2015, the United States Department of Defense is expected to spend $24.1 billion on training and simulation products and services, according to Frost & Sullivan. The cost of classroom training, the desire to decrease wear and tear on operational assets, and the sophistication of today's simulation software are moving funding from the class to the network, the report said.

Virtual training solutions provide organizations with an auditable record of attendees and their participation, which is especially valuable in mandated training related to legal or security requirements. Best practices calls for organizations to poll or pose questions throughout the course to ensure participants are present at all times, said Szelyeni. This serves as a legal record of attendance, he said.

While employees may not wish to travel for training, a growing number of employees are traveling for work and virtual training complements employees' arsenal of mobile devices such as iPads, notebooks and smartphones. The ready availability of built-in Webcams has added an extra layer of richness to virtual training, Szelyeni said, making courses more interactive.
Virtual-event attendees typically are more likely to interact than people sitting in a classroom, he noted, perhaps because they are more comfortable in their normal environment.