Training Contract Template

What Is a Training Contract?

Training in the workplace is necessary because it helps expand the knowledge base of each employee, according to an article from Chron. Training and development, also known as learning and development or L&D, provides both the company and the employee with benefits that will make the invested time worthwhile. It is a practice that the majority of companies are practicing to improve employees’ skills, abilities, and work ethic for better workplace performance. And many companies are investing in training to develop their employees and aid talent gaps. But, before you engage in a training program, it is important to discuss matters first. This is where a training contract comes into play. A training contract is a written document that presents information about the training as a whole. It outlines the essential skills and knowledge the trainee must acquire and how they will acquire it. 

A report from Statista stated that the global market size for the workplace training industry was estimated at 370.3 billion U.S dollars in 2019.

In a survey from Statista in 2019, 93 percent of the respondents stated that the face-to-face training mode was the most popular training and development mode.

Statista also stated that the North American market spent an amount of 63.3 billion U.S dollars on training and development in 2017.


Types of Employee Training

The importance of training programs for employees is that it helps them master existing skills, acquire new skills, and improves their work performance. There are different types of employee training that companies will engage with to enhance employee performances. However, training and development programs usually depend on company resources and company priorities. But to give you some insights into the most common employee training programs that are present in the business industry.

Quality Training: This type of training is usually present in production-focused companies. Quality training is required to train employees to detect, eliminate, and prevent non-quality products. This type of training is necessary, especially if your company makes a profit in selling items in the market. With this, you will be able to allow your employees to recognize items with poor quality that will endanger your business. This will also give your company a competitive advantage and saves cost in production.Technical Training: Technical training is essential to help employees familiarize the technological aspects of the work. However, this type of training comes recommended for employees with positions that involves using more technology. Technical training helps employees improve their skills in computer management. For instance, technical training helps real estate professionals with systems that will allow them to find prospective clients. This type of training is usually performed in-house, but it can also be done externally.Skills Training: This type of employee training will improve employees’ skills to perform their jobs. The skills training allows employees to learn more about the things which they will do on a daily work basis. Oftentimes, skills training is done in-house with mentors that will administer the training.Soft Skills Training: The other type of employee training is soft skills training. Unlike the skills training that focuses on improving the employees’ work traits, soft skills training is more on the personal side. This type of training is required to help employees enhance their personality traits, habits, communication skills, and social graces and handle clients. Soft skills training could include ethics and sexual harassment training.Team Training: This type of employee training is probably the most common one that exists in most companies. The goal of team training is to develop strong teamwork skills among employees. This training will help employees improve their decision making and problem-solving as a team. This training will also allow employees to build team-development skills for excellent business performance.Managerial Training: When an employee is doing well with his or her work performance, he or she would possibly be a candidate for promotion. And if this happens, a managerial training would be necessary. This type of training covers soft skills and technical training. An employee learns how to manage and motivate other employees and handle managerial jobs. Other managerial training can be administered in-house, but some can be performed outside company premises, specifically leadership training.Legal Training: This type of training occurs depending on the nature of the job. If the work has related laws, then legal training is important. For example, if there are new updates about tax laws, then business owners must send their company accountants to training to learn new knowledge. Legal training is important because this will help your company avoid mistakes that will cost your company a huge amount of money.Safety Training: The last type of training that is essential for businesses to have is safety training, especially for companies that involve hazardous materials like construction firms. This type of employee training exists to help protect employees from work-related accidents that may occur anytime. This training should include fire drills, evacuation plans, and workplace risk analysis procedures.

Types of Employee Training Methods

Training and development programs are one of the essential tools that companies should invest in to make sure that their employees are equipped with full knowledge and skills to perform their respective tasks. This can improve business productivity as well as build a strong workforce. There are various types of training methods that management may use to administer each program. Here are some commonly used employee training methods.

Instructor-led Training: This type of training method is the most common one that exists even in the classroom. This method involves an instructor or supervisor presenting informational materials. The instructor-led training is highly effective, especially when dealing with complex topics.eLearning: The eLearning is a type of method that uses online videos, tests, and courses to administer employee training. This type of training method is much more convenient for employees since they can have training in their palm. With proper and solid instructional design strategies, this training method is effective.Hands-on Training: The hands-on training method involves experiential training. It focuses more on the individual needs of the employee. This type of training method will help employees fit in their job roles while enhancing their skills. This method is well-administered if there are enough resources available.Coaching and Mentoring: This type of training method is quite similar to the hands-on training. However, coaching and mentoring focuses on the relationship between a trainee and a tenured and experienced employee. This training allows employees to ask work-related questions to their mentor. This one-on-one method can be administered through personal or virtual coaching sessions.Group Discussions: This training method is required to train employees in a similar department or group at once. Group discussions are necessary, especially when achieving company challenges that require a collaborative approach. With this, employees will be able to develop problem-solving skills and strong teamwork.

How to Draft a Formal Training Contract

The importance of business contracts like the training contract is to present and legalize the terms and conditions that have been agreed by two parties, the employer and the employee. Hence, it is only essential that the training contract is well-drafted, professionally written, and informative. To help you create one, here are some tips on how to draft a formal training contract.

Step 1: Meet the Employee for Training

Before you start drafting a formal training contract, you have to schedule a meeting with the employee for training first. The meeting will serve as your avenue to discuss training options. It is essential to review the employee’s files and performance evaluations to decide what training program will best fit for the employee. Then, discuss other matters that need to be addressed in the contract.

Step 2: Write the Training Contract

After you have discussed terms with the employee, you may now proceed in writing the training course agreement. Start with drafting an introduction that outlines what the contract is about and who are the involved parties. Make that the employee training agreement should have full information about the employee and an overview of the employee training program.

Step 3: Describe the Training Program

Once you have already drafted an introduction for the employer-employee training basic agreement, you need to provide detailed information about the training package. Present each training program with a description, the schedule, and how often the employee will take the training. It is also essential to include the different training methods to be sued for each program.

Step 4: Present Goals to Achieve

Now that you have provided details about each training, it is time to present the agreed goals in the staff training agreement. Write down the goals that both parties have agreed for the employee to achieve during training sessions. To organize and well-present information, you may use a checklist to present each goal. 

Step 5: Discuss Terms and Conditions

After that, the next vital information that you need to incorporate in the training contract is the terms and conditions. These are the agreed terms that the employee will follow during the training period. Terms and conditions can be about punctuality, absenteeism, and the likes. It is also essential to write termination grounds, which will result in a breach of contract. Make sure that the employee is well aware of these terms and conditions. Once that is done, you may check the agreement for mistakes, then get it signed.


Why is an employee training program important?

Having a training program specifically for employees is a smart business strategy for every company. This is an avenue for business owners to strengthen their employee’s skills to function well with their jobs. With proper employee training, companies should be able to expect a strong workforce and high-level employee performance.

Who is responsible for employee training?

Management is responsible for developing employee training programs. It is their responsibility to provide an environment and proper resources and materials that will support each employee’s growth and development.

What is student employment training?

Student employment training is an avenue for students to learn and practice professional workplace skills that are related to the students’ academic courses.

Training of employees has a significant role in the success of a business. Thus, every business employee management plan needs to develop a training program. And just like any other business transaction, it is important to have a written document that will legalize terms. Hence, a business training contract. Drafting a training contract before engaging in a training program is essential to ensure that everything that has been agreed upon is taken seriously and to meet company expectations.