Training Is An Investment Not An Expense
In a recent report by the Australian Institute of Management, 81% of companies said investing in employee development and retention will benefit their organisations in the medium-term. The question is … will they actually commit to the investment?
At the top of the list of budget cuts for most companies in these uncertain times is marketing and training. So, while companies may ‘believe’ investment in development will return a benefit, many are not laying the funds on the table to make it happen.
Perhaps there is a different way to think about this essential investment.
Firstly, in a challenging business environment, people need different skills and tools to do their job effectively. This is even more evident if cut backs and retrenchments have been implemented as a means to weather the storm. With an increased focus on performance and productivity, organisations now need to do more with less resources and are demanding more from staff.
Secondly, the purpose of cutting training and development may be to save money in the short term, but what impact will this have on quality and the service that is delivered to customers? We all know a loss of customers will ultimately lead to a loss of revenue – so if this is your rationale think this through carefully.
With a significant proportion of the workforce reportedly ‘disengaged’ and ‘unproductive’ organisations need to ask themselves not ‘how can I afford to invest in training?’ but ‘how can I afford not to?’. Most importantly, they need to consider what type of investment will have the largest impact and return on the in the immediate term.
One area that can not be overlooked is leadership development and the type of skills leaders, managers and supervisors now require to successfully lead an organisation through uncertain times. For example, creating clarity from uncertainty is undeniably a leadership skill needed now more than ever.
Other areas to consider include:
- Leading highly effective teams
- Engaging and developing others
- Leading in crisis
- Empowering, initiating and managing change
- Conflict resolution and negotiation
- Building resilience
- Leading with courage
While 81% of companies are thinking about it, stand above the pack and actually do it. Training is an investment not a cost and upskilling your workforce will pay dividends – literally!