Does the recession make uneconomic the investiment in Training and development of employees?
Answers (12)
Roberta C
Thought Leader, Workplace Expert, Keynote Speaker, HR Consultant and Expert on Generational Workforce Issues
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Training is always the first thing to go when belts get tightened. However, this is exactly what organizations should be doing so they are well positioned to take advantage of all the opportunities this recession is presenting. You may be interested in this Special Report that I just published regarding the recession. You'll find the link below.
Roberta Matuson
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Training sometimes gets overhauled when companies face economic challenges. It can go either direction pending on the amount of research and effort put into developing new programs. The key is to make sure you have the employees perspective along with customer/consumer perspectives both internal and external.
Many training programs become unreceptive when base line employee representation is not considered since the training is possibly or probably meant from them to better assist customer requirements. This is something many companies tend to ignore from professional experience.
Heidi T
Independent Computer Networking Professional
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Many companies stop investing in training. That might be the wrong decision. The right training and development could be very worthwhile in helping the workforce to grow.
Agree with Roberta and Daniel's comments.
In these recession times Trainers should quickly and smartly convert themselves as Coaches . The coach focusses on specific issues faced by the organization during these recession times and it could be different for different organizations.The coach needs to ensure ( and sometimes guarantee) that he can make a measureable change through his coaching intervention..
If he or she is successful , the organization would certainly give them their training business once the good times set in.
V G Raman
www.visharadgroup.com
David Mortimer D
Career Development
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Training is nearly always the first to be hit, but this is not really the right choice, better trained team members normally result in better motivation therefore better results. In tough times the management ethic is more for less (More work, but no payrise) this can be off-set by better training, this could be on technical or soft skills areas or even just on the companies stratergy for the next 12 months, cause lets face facts its the team members that will be living the stratergy so let them know about it.
Paul S
Consultant and coach specializing in strategy development, complex programmes and projects and change management.
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During difficult times training is looked at far more carefully in terms of the monetary investment made since it is competing directly with activities which are directed specifically in keeping a business afloat. That said, most would agree that if such an investment can be afforded and is targeted carefully it can assist a business in building for the future.
Other activities that don't require a direct monetary investment and might fall into a broad training category could make use of 'spare time' and people's resources in refocussing various elements of the business. In most organizations someone will have the capability to facilitate such sessions which can have a significant impact if actions are followed through. A simple session looking a what you should do more of, less of and what you should stop doing can be enlightening whether in recession or not.
Kindest regards
Paul
Ravi Shankar S
Program Management Office at Gulf Bank
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In difficult times you would tighten your purse and look at everything perhaps more critically than ever.However the first issue with most organisations as far as training is concerned is that it is treated to be a support function. To me it is not.
Training needs to be an integral part of every strategic objective the organisation has. Now if to begin with the Training Energy in an organisation is a cost center and non-strategic...it will suffer. So will the organisation.
Now that's common sense...the most "uncommon" thing in the world!!
Octavio B
Corporate Strategist ★ Web 2.0 Entrepreneur
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Hi Ana Paula,
Irrespectively that an organization may struggle for surviving in these times of economic turmoil and even could make layoffs in an attempt to reduce costs, only those organizations that consider that their human talent is their most valuable asset to build the competencies needed to survive of this crisis from a long term perspective.
According to the aforementioned, these times of economic volatility and persistent uncertainty are perfect to make both an implicit as explicit, systematic emphasis in the value of an engaged human talent, motivated by the role modelling behaviours shown by their courageous leaders, and supported by a culture that is supportive of their expectations, fears and desires, and at the same time, is appreciative in recognizing superior outcomes, in reinforcing positive engagement towards the organization and in instilling a transcending sense the purpose to overcome the repercussions of this crisis.
In facing such a perspective, the goal of hire, retain, train and motivate to the best talent available in the job market as is usual in companies that apply the best practices of Talent Management and employer brand management, makes sense in these times of economic recession, to encourage higher morale in the workforce and achieve a positive collective attitude built on positiveness and courage to face the repercussions of the crisis, irrespectively from the fact that the job market could have a lot of qualified professionals looking for a job.
From an organizational perspective, succession planning is systematically developed in those companies that assume a proactive attitude to ensure the availability of talent properly trained and capacitated having the needed competencies, knowledge and skills to execute proficiently the projects and initiatives contemplated in its strategic planning.
Collateral to a good succession plan lies a career development plan that being systematically developed should provide the best fit possible between the skills, competencies and knowledge of an employee regarding to the requirements of an opened job position, that is susceptible of being improved and nurtured in the workforce according the real needs of talent that are required during project´s portfolio execution.
In spite of the repercussions from the current economic recession, most of the current Fortune 500 companies, aware from the relevance, importance and pertinence of having the best professional talent available in the job market, are developing systematically both excellent career development and succession plans as part of their initiatives of Employer Brand Management to attract, engage, motivate to their most valuable employees and sustain a competitive advantage taking advantage of their human capital.
In a nutshell, an organization that makes sustained investments in the best initiatives of Talent Management is making its best effort of preserving and encouraging the organizational competencies that being built around the desire, willingness and motivation from the people to learn, grow, excel and succeed that are relevant for an organization that looks to survive and grow while facing the repercussions of an economic recession.
Complementary to this interesting and relevant question, I am including links to questions, I have posted time ago in Linkedin Answers:
1. How to Build Successful Teams in the Midst of a Transition?
2. Does the current economic meltdown justify a slowdown in Talent Management practices?
3. How would you create a sustainable Competitive Advantage by applying Competency Management?
I hope this helps you.
Octavio
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Rob D
Innovation Catalyst. Director of innovation & commercialization group. Keynote speaker, author, consultant.
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Don't forget that training needn't be costly. Simple brown bag lunch & learns with existing employees sharing skills with their colleagues will let people see that you still care about their development, reducing anxiety in tough times.
If you want an "outsider" to jazz things up, there are always people in the early days of launching a speaking or training business who might be willing to offer an hour's session in exchange for the chance to film/photgraph themselves for their press kit, or in exchange for testimonials etc.
Be ingenious and frugal - but keep training & developing people!
Cheers.. Rob
The short answer is "no." Since people are an organization's most valuable resource, then it is logical that you would continue to invest effectively in developing your people. But the operative word here is "effective." Regardless of the economic environment, if L&D is not aligned, targeted, tailored and the impact measured, then it is akin to throwing money, time and energy down a black hole. (Of course this is, or at least should be, true of any business activity, not just L&D!)
In a recession, it is even more important to keep money and resources from being lost, and ineffective people performance and poor productivity systems are huge drains. But doing L&D wrong is probably worse than not doing anything at all, because it is a disruption and/or a demotivator.
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Tery T also suggests these experts on this topic:
Kevin Burns - C
Speaker and Author of "Your Attitude Sucks - Improving Attitude to Transform Corporate Culture.
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You need stress-management when stress is high. You need sales training when sales are down. You need confidence training when confidence is low. You need attitude training when attitude sucks. In fact, you need these programs on-going before you "need" it. And yet companies claim to put people first then cut the help they need exactly when they need it because times are tough? A Corporate Social Responsibility initiative gets launched and really only concentrates on "corporate" - not so much on social or responsibility.
For companies that do this, don't think for a second that your people aren't watching either. The moment times are good again and the economy has rebounded there will be empty chairs in your workplace because you failed your people exactly when they needed you. They will fail you when you need them. Rule of life: you get what you give.
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Jody B
Partner at ACHEV
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Ana Paula,
I really want to weigh-in on this well timed question. Based upon the responses received, I must wonder what additional relevant comment could be made. Given that, I will simply state what I believe to be true. Training of those that carry out the vision/mission of the company can never be an unwise investment!
It is very relevant to assess the quality(How much is actually retained and put into practice?) versus cost. Are there ways to provide the training less expensively (internal trainers vs. outside consultant; electronic delivery and follow-up vs. "on-site"; shorter segments and pre-work vs. multi-day workshops)? There is always a way if leadership truly believes the people are the most important asset..........Here is a unique thought.......ask the CEO who just received a $60 million bonus to kick back a couple million to fund the training; just to test real beliefs. (Please forgive the sarcasm, I am still licking the wounds inflicted by Stan O'Neal).
Not training is the uneconomic decision/investment....find a way.
Jody
