Tough Economy Demands Greater Training Commitment

The challenge of a waning economy is forcing many company leaders to sharpen their business focus. In corner offices and boardrooms across the nation, managers are evaluating various cost-cutting initiatives to help their organizations weather the storm. Unfortunately, when budgets get slashed, one of the first items on the chopping block is training.

Decision makers often view employee learning and development as a cost center rather than a profit center. Areas not directly linked to revenue generation are typically easier to whittle away. However, research shows that cuts in training development can go much deeper and resonate noticeably longer than business leaders may initially predict.

Though there is never a good time for an economic downturn, now is especially poor timing. Many companies are already experiencing huge gaps in skilled and knowledgeable workers. And soon millions of Baby Boomers—the experienced team members who are familiar with corporate strategy and understand and share company values—will be eligible to retire. With limited or no opportunity to experience effective training today, employees who survive layoffs will be less prepared to become the leaders that companies need tomorrow.

The good news is that a shrinking budget doesn’t mean the quality of your learning and development programs must shrivel up with it. Tough economic times call for creative approaches to meet and exceed the expectations of your stakeholders, customers, and perhaps most importantly, your employees.

The reasons to invest in employee training include more than the obvious desire to ensure compliance and measure performance. Learning and development programs can directly and indirectly affect every aspect of your business. Consider a few examples.

• Greater Employee Retention: It’s less expensive to keep your star employees than to replace them with less knowledgeable workers. To keep valuable team members in place, create opportunities for them to learn and grow professionally.
• Higher Staff Morale: Employees given the opportunity to hone their skills and improve themselves professionally typically build more positive relationships with their employers and are less likely to leave.
• Enhanced Motivation: Employees may claim compensation as the primary excuse for leaving a company, but money is a short-term satisfier, not a long-term motivator. To enhance employee motivation, offer learning and skill development programs that will open doors for career opportunities.
• Improved Culture: Training allows employees to understand a consistent company culture, which provides the energy your business needs to be successful.

While it is always important to align training with the goals of your company, a focused strategy is critical when you are fighting for funding. e-Learning allows you to get the most from limited training dollars. Provide self-paced training programs that accommodate different learning styles and diverse employee schedules. Keep in mind that Generation X and Y workers, as well as many Boomers, have grown up with technology. Take advantage of the latest tools to keep these employees engaged. Our SimWriter technology is a valuable tool to create custom immersive learning simulations that are both cost- and time-effective.

To survive a depressed economy intact, refuse to consider training a luxury that is only valuable when business is good. Employee training and development is an investment that is critical to the success of your business—especially when you are asking more from fewer employees.