Posted 08.13.2010
Why training should be the last thing to go
Make an investment in your greatest asset
By Kathleen Quinn VotawAn organization I'm familiar with anticipated doubling its size within a year and, to manage the change that growth would bring, put in a new layer of management. Five vice presidents were installed, all of them promoted from within. Rather than effective planning, this turned out to be disastrous for the organization. Morale disintegrated. Turf issues and tempers began to flare in the formerly supportive environment. And productivity plummeted.
Why? None of the VPs had ever had management training.
The practice of promoting people with the strongest technical skills, the most tenure, or the most outgoing personality is unfair to the team alienated by poor management, and to the person who is promoted and loses all self confidence-not to mention the costs of increased turnover and lost productivity. Underfunding, reducing or cutting your training and development budget, in either good times or bad, can put your business at risk.
After all, if people are your most important asset, why wouldn't you continually make investments in their value? As Jack Welch puts it, "An organization's ability to learn and translate that learning into action rapidly, is the ultimate competitive advantage."
Employees stay and leave for the same reasons
The opportunity for career growth and advancement is consistently one of the top three reasons people stay at companies. The lack of it is a primary reason for leaving. (Surprisingly, 89 percent of employers mistakenly believe employees leave for more money, according to author Leigh Branham, when the reality is that about 12 percent do.) In addition to saving the costs of replacing people-estimated to be 150 percent or more of total annual compensation-there are many benefits to establishing and maintaining a robust training program. And they all lead to better performance.
Depending on the focus, training and development:
• Ensures that people can do their jobs effectively
• Increases employee motivation
• Increases efficiencies in processes and systems
• Inspires innovation in strategies and products
• Cross-trains between departments and across regions (a safety net when you lose staff)
• Lowers risk management (in areas like sexual harassment and diversity)
• Increases productivity
• Improves customer relationships
• Helps maintain a competitive advantage
And there's more.
Readers Respond
You have clearly communicated what I tell clients all of the time. The instinct in a lot of organizations is to cut their training budgets when business is slow. Companies need to continue to develop their people, especially in a down market, so that they are able to help push business forward.
By Deanell Sandoval on 2010 08 17Absolutely! Very well put, Kathleen (& terrific writing)! CB
By cathie beck on 2010 08 15Great article! Especially important not only in growth but in downsizing when people are asked to do more without the assoicated skills. Thanks for saying it
By Garry Duncan on 2010 08 13Leave a comment