The economic pressures of 2020 have forced managers around the globe to slash expenses to make up for declining or uncertain revenue. If this is a reality in your organization, you may be facing a training dilemma: Cut the training budget to make a quick impact on the bottom line or double down on training to improve your organization’s position now and in the future.
Looking back at past economic downturns, we’ve learned a few lessons about the importance of training.
1. Replace lost skills: If an organization has suffered layoffs, you’ve lost knowledge, experience and productivity. Training helps fill the knowledge gaps in remaining team members. This is especially true in FM, where 84% of employers identified a knowledge and skill gap even before the crisis, according to a 2019 Training Outlook Survey from Building Operating Management magazine.
2. Boost morale: Job security is a big concern for employees. Training reinforces your commitment to your team, resulting in increased engagement.
3. Retain talent: Right now, you need your most qualified and knowledgeable staff to guide the organization through unprecedented changes. Training increases loyalty and avoids the need for time-consuming and costly recruiting. In fact, the 2020 SHRM Human Capital Benchmarking Report showed companies spend an average of 42 days and $4,129 per hire. Why not invest those resources in your current team?
4. Inspire innovation: Tough economic times demand fresh thinking and new ideas. Training encourages employees to think outside the box and impact the ever-critical bottom line. According to the American Society for Training and Development, companies with well-developed training programs realize 24% higher profit margins and 218% higher revenue per employee.
5. Expand your competitive advantage: As other companies cut training, this is your opportunity to pull ahead. Help your staff build new skills, increase efficiencies, and generate new ideas.
Since the pandemic began, many organizations have taken these lessons to heart with employers reporting nearly 19% greater expenditures on learning and development expenses, according to 2020 SHRM research. The study also reveals that the most appealing training programs are those resulting in a professional credential, as they offer both professional development and something marketable for employees.
While many managers focus on the negative impacts of the pandemic, it’s clear that training provides an opportunity to make a positive impact on your organization and your most important asset, your people.