The Importance of Corporate Training in a Tough Economy

The Importance of Corporate Training in a Tough Economy

More often than not, during difficult economic times, corporate training budgets are first in line at the chopping block.  Unfortunately, for many managers, corporate training programs are considered an unaffordable luxury when revenues are down. The truth is however, managers who cut their training budgets are actually hurting their organizations! Without adequate training, their organizations are at risk of becoming extremely vulnerable.

An article recently published by the Safety Daily Advisor entitled “Training in a Down Economy” lists the following valid benefits of continuing to train during economic difficulty:

• Improves employee performance - Training maintains or increases performance in employees.  For example, employees who don’t receive adequate training are likely to make more mistakes. After all, it is the employees that help make the organization run.
• Informs workers about critical policies and operations, and therefore protects the organization from potential legal problems - Employees who are not properly trained in issues such as discrimination can behave in ways that may make the organization vulnerable to costly lawsuits.
• Prevents accidents and injuries – Employees who are not properly trained in accident prevention can become careless and a future liability for many companies.
• Develops skills and knowledge - Prepares workers and the organization for future challenges.
• Supports excellence and quality.
• Keeps you competitive in difficult economic times when staying competitive has never been more important.
• Employee retention - Companies that provide inadequate training lose 20% more employees on average with an estimated cost of $30,000 or more per employee!

On the other hand, the indirect costs of inadequate training include:

• More accidents and injuries.
• Lack of knowledge about the job.
• Damage to morale and job satisfaction.
• Replacement of workers who leave in search of better growth opportunities.

Spurred by the recent economic status, several managers who aren’t ready to cut training altogether are trying to save money by switching from classroom training to online training. An article posted on EvanCarmichael.com a site devoted to motivating and giving advice to small business owners, argues that while online training has its advantages in terms of convenience and affordability, the fact is most people simply learn better in a classroom environment.  The article goes further to explain several classroom training advantages, a few main points are listed here.

• Many people learn better in an environment with face to face interactions.  The classroom setting allows for real time discussion and provides interaction that isn’t easily duplicated even with the most advanced of technology. Classroom training allows for an individualized approach that cannot easily be duplicated in an online setting. Instructors can answer questions and provide hands-on answers that should satisfy most curiosities. This allows the students to learn readily and to effectively engage all of their senses with the material.
• With classroom training, employees are around other workers and are learning the same material. This allows for constructive team building, as people are joining together to work out basic problems and find solutions as a group. This, coupled with the individualized sense of theory, helps create a strong team within the staff. If the classroom theory allows for learning in small groups, the sense of cooperation is reinforced significantly.
• Classroom learning can also allow for more time. The learning process in some people takes quite a bit of time, so a classroom setting is ideal for the patience and environment required. While e-learning can often imprison a learner in a solitary timeless existence, a classroom enables a learner to experience support from peers and instructors. This gives a sense of encouragement and belonging to the student, allowing more time to learn things properly.

For more advice on continuing to train under difficult economic conditions, read through The America Society for Training & Development’s new Economic Survival Guide a wonderful business tool that  offers great tips for all managers and business owners faced with hard training budget decisions.

It should be stressed that the benefits of continuing to train employees are numerous and far outweigh the costs for businesses in the long run. Remember, poor performance on the part of your employees could mean poor performance for the organization as a whole!

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