Challenging economic times inevitably bring with them budget cuts. All sections of a business are likely to face a review of their spending.
However, training budgets are often at higher risk of cuts as organisation all-too-often fail to recognise the risks associated with reduced training provision.
What impact will any cuts on training have in the real world, though?
It’s easy to see how some companies would view cutting or withdrawing the training budget as a ‘quick win’ in terms of saving money. However, the long term impact often resonates much further than might be imagined.
Most notably, employees often feel let down by their employer who’s likely to have promised training and personal career development as part of the package when the employee joined the company. This serves to de-motivate staff and lowers morale.
Cutting or eliminating the training budget also reduces a given business’ capacity to respond effectively to changing economic times.
Training: why it’s so important during an economic downturn
Contrary to what might feel like gut instinct, training is actually even more important in an economic downturn than during the boom years.
Economic downturns challenge even the most successful of businesses, but a recession doesn’t mean that you cannot grow your company.
It’s hugely important to think about things differently. Remember it’s possible that, during tough times, the structure and nature of your business may change. Businesses will therefore need to be skilled, innovative and adaptive to succeed.
Furthermore, employees are likely to need different tools to do their job, and it’s vital to support their skills development through effective training.
The benefits of training are further reaching than you might think. Some businesses often overlook how investing in training can save money in the long term.
While it’s tempting to reduce the workforce when times are tough and only re-build when the economic climate improves, this can be counterproductive.
Recruitment is an expensive exercise and new staff will almost always need inductions which can again be costly.
Building the skills of your workforce
Focusing on building the skills of the existing workforce to adapt to the changing economy is a smarter way to invest in the future. Not only do members of staff feel valued, but the company can ensure that new skills continue to be brought in on a cost-effective footing.
The added bonus is that, because individuals feel valued by training, it improves staff retention rates. Recruitment quickly becomes a ‘front burner’ issue in the first few months of an upturn, so it makes sense to save money by investing in nurturing the skills and talent of existing employees.
Furthermore, employees who are educated and flexible – and have valuable insights into the business through their years of experience – will contribute immensely to reducing the impact of the recession because they can take on new challenges and adapt quickly to changing business strategies.
Therefore, investing in training and efficiency will ensure the company is poised to take advantage of profit-making opportunities as the economy recovers.
Costs need to be reduced: what should you do?
Perpetuity Training would argue that the emphasis ought to be placed on how to spend training budgets more effectively rather than reduce them.
Employers are always faced with the need to build new skills into their organisation, and training is central to this need.
With this in mind, Perpetuity Training has formed a list of Top Tips to ensure your training is as effective as it can possibly be…
What about the bottom line?
The question businesses should be asking themselves is this: ‘How can we afford not to invest in training?’
Do what you can to safeguard the value of your training budget.
Don’t think about how to stretch that budget. Instead, focus on what investment will have the biggest impact for your business.
Ken Livingstone (managing director) and Amy Burrell (training consultant) are with Perpetuity Training
Further information about… Perpetuity Training
Perpetuity Training offers a range of short courses, including Level 4 professional awards in Managing Security Surveys and Security Management.
All of the company’s short courses can be adapted to meet the needs of individual businesses. Bespoke training services are also available.
Perpetuity Training is proud to be associated with The Security Institute and to be the provider of the Institute’s two membership qualifications: the Certificate in Security Management (Level 3 Advanced Certificate) and the Diploma in Security Management (Level 5 Professional Diploma).
For more detail call 0116 222 5550 or e-mail: [email protected]
