Should you keep training internal to the organisation or bring in the experts for an objective approach? Mia Barnes weighs up the practical, cultural and financial trade-offs that shape effective learning strategies – and why there’s no one-size-fits-all answer when it comes to developing confident, capable teams that deliver on performance

Organisations want well-trained staff, and employees want to feel confident about stepping into a new role. Deciding whether to provide in-house or outsourced training is a key step in developing a program. Both routes have benefits and drawbacks, so a company should consider its primary objectives, future goals and financial resources when deciding.

Getting familiar with the pros and cons of in-house and outsourced training helps companies find the right fit for them.

In-house training

In-house training is common and easily integrated into employees’ tasks and schedules. All new hires will go through the process, but a company may also use it to transition someone into a different role or familiarise people with a new technology. Senior staff members are typically involved in a company’s in-house training.

The pros of in-house training include:

• Customisation: In-house training allows companies to customise their training to suit specific skills and tasks.

• Convenience: Employees can receive training during regular working hours and in their typical work location, simplifying the process by avoiding travel costs and schedule disruptions.

• Cost-effectiveness: While in-house training has costs, it can be more cost-effective than outsourcing since it eliminates the need for external professionals, venue rental or travel expenses.

• Consistency: In-house training allows companies to keep training consistent, which can lead to improved performance and compliance.

• Improved loyalty and morale: A 2024 survey found that only 23% of employees are engaged at work. In-house training communicates that a company invests in its employees’ success, motivating workers to engage by dedicating their time and effort.  

• Strong company culture: In-house training can strengthen staff connections and allow companies to communicate their values and culture to new employees.  

The cons of in-house training include:

• Limited expertise: In-house training limits companies to the staff they have on hand. External trainers may have more significant or relevant knowledge.

• Biased training: A fresh outside perspective can generate new ideas. In-house trainers may be biased due to their own experience.

• Decreases networking opportunities: Working with an external program can lead to fruitful networking. In-house training decreases this possibility.

• Not employee-focused: Companies have greater control over in-house training, so employees may miss out on more flexible knowledge. According to a 2022 survey, 58% of employees said they would find other work if their company didn’t offer professional development.

• Time-intensive: In-house training requires time to plan and orchestrate.

Outsourced training

Companies that outsource training work with external institutions or partners to train employees. Outsourced training programs may grant certifications or degrees and often advance career development. If a company chooses to outsource training, it may fully or partially pay for the program’s cost.

The pros of outsourced training include:

• Expertise: Opting for outsourced training gives companies access to experts and knowledge they may not have in-house.

• New perspectives: Outsourced training programs typically employ professionals whose job is keeping up with industry trends. Academic programs are often at the forefront of creating and gathering knowledge, giving employees fresh perspectives.  

• Retention and recruitment: Today’s job seekers are eager to professionalise themselves for the job market and want benefits like tuition coverage for relevant degree programs. Outsourcing training to these types of programs helps recruit and retain talent.    

• Cost-effectiveness: Outsourcing training can be cost-effective since external programs serve multiple clients and may offer lower rates.  

• Saves company time: Outsourcing training can save a company a lot of time since the external program will develop training modules, materials and schedules.

• Offers various forms of engagement: Outsourced training programs may offer multiple ways for employees to engage — from in-person to online or hybrid. Studies have shown that working remotely can increase productivity, so programs set up for remote flexibility may even help employees better retain and use information. 

The cons of outsourced training include:

• Lack of control: Trusting training to an outside program does mean that companies have to give up control over the information and skills their employees receive.

• Quality issues: External trainers can be highly qualified. However, it all depends on the program, and outsourced training has the potential to fall short of a company’s expectations.

• Loss of customisation: Companies cannot tailor outsourced training to address their specific needs and operations.

• Miscommunication: Successful partnerships thrive on effective communication, but outsourcing training risks communication issues, making it difficult for companies and external partners to agree on expectations.  

• Cost: Outsourcing training can be cost-effective. However, keeping it in-house gives a company more control over educational methods and costs.

Training prepares new employees and increases the skills of existing ones, so picking the proper method is essential for a company’s successful operation. To make the best decision, businesses should consider their needs and familiarise themselves with the pros and cons of in-house vs. outsourced training.

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Mia Barnes is Founder and Editor-in-Chief at Body+Mind