Considering the economic downturn and the sure possibility of the market walking into a slump in the coming months, would various industries look
towards training & development as a means to retain and improve exsisting employees and keep their costs balanced by say providing excellent customer service (Retail) in retaining customer loyalty.
Would companies see the benefit in Learning & development
Answers (7)
I would hazard a guess that in tight financial times, companies will be looking to reduce all expenses that do not create revenue immediately. Unfortunately, training & development is an investment, and does not immediately generate income. I would expect companies to reduce their commitment to developing their employees, unfortunately.
In my experience in the corporate world, this is typically the first area that gets cut. If you are looking to develop this type of business, do a lot of research and pitch it from the point of view of bottom line savings. The feel good fluffy reasons for T&D just won't fly these days with most companies. They need dollars and cents justification to spend more $$.
Tim H
Technology Consultant at Mousetech.com
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Sadly, no. based on past performance:
1. Training budgets, if any will be cut.
2. Existing employees will be discarded along with their knowledge of the business
3. New hires will be expected to come fully experienced in exactly what the business wants so they can "hit the ground running".
4. A renewed effort will be made to push customers to cheap service options such as automated phone menus, web sites, and offshore call centers staffed by people who probably can't afford the product, have never personally had to deal with the product, can't speak intelligible English, and are expected to resolve all problems in minimal time and according to a fixed script.
Sathya P
Sr. Project Manager at Tripod Technologies, LLC
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No, normally this does not happen.
But if you look at it closely, the demands on the organization's workforce increase during an economic downturn as employees are often asked to do more. But in most cases the emphasis shifts towards on the job learning rather than training in the a classroom.
New hires, if any, are supposed to be correct fit. This will allow them to start being productive from day one, thereby benefiting the company.
Ajay M
Senior Manager - Branch Head
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Customer service can never go out of focus or demand at least in India no matter whatever the industry to look at...
In, say, the consumer durables industry, customer service will be affected in a way that since profits will be down, as for example, service centres based in non-major city areas, will reduce the number of visits to a particular town/district or club all complaints and send a technician to attend t them at one shot on a weekly basis.
In the hospitality industry, apart from prices being increased, the amenities/frills will be decreased. Food serving portions could be a little reduced.
As for training and learning, there was never really a lot of focus or practical attention given to learning and development, and other such HR-related activities in the first place, these are all shams in the practical sense.
Every thing sounds good in theory and on paper, fancy projections and surveys with graphs and illustrations and other assorted colourful diagrams and examples to show growing achievements and success in this field by HR / training managers during management meetings / conferences !
Now "cost control" will be perfect excuse to show even more reduced budgets, infrastructure, accountability, time and energy, and activities being carried out.
Customer service goes about managing itself and employees take care of themselves as long as the salary comes on time and there are increments with added monetary incentives / perks being doled out on a yearly basis or in any case they'll jump ship whether learning/training, sports/games, competitions and parties (other HR tools) have taken place or not...
Elizabeth H
Managing Partner-Saugus Group
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The answer to whether or not companies tighten their belts in poor economic times, may have more to do with whether the company's leadership (culture) is proactive or reactive. It is only in a down turn when a company actually has the time to breathe and consider where it needs to shoreup or improve its talent pool. During strong economic times, businesses may too busy tending to business to tend to training and development.
Subhas C B
Management Consultant
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Yes. Companies who need to continue business beyond downturn would see the benefits.
Don't we start reading a book on a rainy day or on a holiday? We cannot read a novel or a newspaper when rushing/driving to meet a customer.
Training, learning and development is more suited when people are not busy, business is slow or economy is on a downturn.
Those who consider training as a cost, they should be ready to pay high for trained people when they require them, rest will consider training as an investment to reap benefit when the business is good.
Don't consider training as a means to retain employees. Normally, trained people enhance their market value. They are head-hunted or they start looking for better deals elsewhere.
