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FROM: MAY-JUN 2009 ISSUE | BY MERGE GUPTA-SUNDERJI
Unless you’ve been a hermit for the last few months, you know we’re in the midst of an economic slow-down. Depending on which expert you talk to, the severity ranges from a temporary aberration to a full-blown recession. Companies are tightening their belts – projecting lower revenues, streamlining their workforces, and cutting discretionary expenses. Regrettably, training and development is considered a discretionary expense at many organizations. But this kind of thinking will inevitably lead to long-term pain. Fortunately, visionary leaders know that training is an investment that will reap substantial rewards in the future. There are several reasons why tough economic times provide a great opportunity to invest in training and development.
First, when your business volume is down, staff members actually have time to attend courses and industry conferences. Think back to when the economy was booming: everyone was running so hard and fast that it was hard to get off the treadmill, let alone find time to go to a full-day training session. Now is the perfect chance to determine where expertise gaps exist and to take concrete steps to close those gaps.
Second, in an economic slowdown it is not as difficult to get access to top-notch learning resources. Whether it’s the availability of the best consultants and trainers or access to pre-eminent educational facilities, the overall market slowdown means that they’re easier to book and schedule. Plus, as the economics of supply and demand kick in, these consultants may be less expensive than they were last year. And just as in any other industry rationalization, the average consultants and trainers will drop out of the market, leaving only those with exceptional skills – good news if you’re in the market for these services.
Third, when your people attend training events and conferences, you’re actually putting yourself ahead of the competition (particularly if they’re not operating under this same philosophy). Not only do such events increase your organization’s collective knowledge base, they also create networking opportunities to make contacts and exchange ideas. It is exactly this kind of approach that will help your organization seek out ways to do business differently and will lead to long-term prosperity.
Fourth, perhaps the biggest return is what it will do for your employees. When you make investments in people, particularly when times are tough, it conveys a powerful message about how you value them. This tangible proof of their worth to you carries far more weight than all the verbal expressions about how your people are your greatest asset, as action generates far more goodwill than words. When the market improves, your people will be equipped with the knowledge and skills they need to capitalize on new opportunities.
Last, but certainly not least, because this perspective on training is not as widespread as it should be, you will be an anomaly. By standing out from the crowd you will attract the best people who will appreciate that you understand the concept of investment. They will want to be part of the winning team.
When times are tough, business leaders feel the need to react to marketplace dynamics, and in the cooker, it’s easy to forget that today’s actions can produce unintended consequences. Slashing training and development budgets is not the answer to difficult economic environments. If you view training as an unnecessary expense you will set yourself up to fail. View training as an investment and the return will come down the road. To make it in the long-term, you have to take a long-term view of your business.
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