Training through recession: essential or 'nice-to-have'?
written by Jill
Spend on training is always one of the first to be cut when times are tough and at FPG some of our clients are already cutting back. But as one financial services client said recently:
"We're doing as much of our training as possible in-house and getting some of our more experienced managers to run seminars on their areas of specialism to other employees. We've scrapped all our external spend on popular courses like 'Finance for Non-Financial Managers' etc.
However, our people are definitely our most important and valuable asset and at times like these every single manager needs to be getting the most out of each and every one of their direct reports. With that in mind, coaching and coaching skills are essential - and if we only invest in one thing this year it will be the most powerful coaching courses we can lay our hands on."
If you need more encouragement or justification to keep a tenacious hold on your training budget through this recession, consider the seven reasons outlined by the Institute of Directors...
The Institute of Directors asks: what are the competitive advantages for those companies who do not cut training spend in a recession?
- To ensure that your business is well-positioned when the economy starts to recover. Those businesses that do not survive will open up market share to those who do.
- To remain competitive. If your employees are knowledgeable and motivated, they will find new ways of generating revenue.
- To understand your customers’ buying habits and how to build on their loyalty. You need to maintain repeat business in a recession.
- To enable your employees to stand back from the day-to-day operations and understand the strategic implications of their work.
- It sends one of the most powerful messages to your employees - that they are valued. When your employees are anxious about job security, it is more important than ever to demonstrate a commitment to them.
- To avoid a long term skills shortage among your employees. UK businesses are still recovering from skills lost during the 1990s recession due to poor investment.
- Training increases productivity in the short term, as well as the long term. The sooner you engage your staff, the earlier you can address and deal with the impact of the recession.
Date posted: 31-03-2009 at 10:32