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I read in my local paper of the decision by one of the councils in the area to make a huge cut in the training budget to contribute to balancing their budget and keep their council tax increase to a reasonable level. This, at a time when councils are under pressure with increased demand for services and public expectations of greater efficiency. It seemed an easy, but short term solution to the financial pressures.
Miles Templeman, Director General of the Institute of Directors, identifies a number of reasons for organisations to maintain their spend on training during the recession.
- Your business will be in a good position when the economy starts to recover. Survival of the fittest will mean that the businesses which do survive will be well placed to pick up more market share from those that don't.
- To remain competitive. If your employees are knowledgeable, skilled and motivated, they will identify new ways to generate revenue.
- Building relationships with and generating repeat business with customers will enable organisations to understand their customers’ wants and needs and build on their loyalty.
- Communication and taking time out for training enable your employees to stand back from the day to day operation of the business to understand the longer term direction and its impact for them.
- Investing in your people builds two way commitment and demonstrates that employees are valued at a time when they may feel anxious about job security. It builds trust in both directions.
- By investing now you can avoid any long term skills shortages in your workforce. UK businesses are still recovering from skills lost during the last recession due to lack of investment.
- Training increases productivity in the short term, as well as the long term. The earlier you engage your staff, the more ready you will be to address the impact of the recession.
You can hear his views for yourself in this video clip.
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