A lot of researches are ended up highlighting the need for increased training and development programs in difficult economic period. Training is vital to the employees as individual, as well as to the organization for long term health. Companies engage in strategic planning for the long term and this presents an opportunity to directly connect T&D programs with a firm’s strategic plan. By investing in staff training, the company increases the chances that their people can pioneer into new areas. When existing products and services are yielding declining profits, it makes sense to be investing in such training and development practices to develop new ones.
If a business is downsizing, means they usually want a smaller group of people to perform the same deliverable. This is added pressure on these employees, and there can also be added job requirements; i.e. skills they do not yet possess. For instance, a regional manager might have responsibility of review a large pool of new reports in case remove some assistant staff and may need to engage in training for new leadership skills such as change management training. Losing a bunch of staff could result in loss of net knowledge which has to be replaced if the new group is expected to perform the same outputs. For these differing reasons, T&D can be important during a recession even after slim down.
Training programs can boost employees’ morale. Employee productivity and spirits increase because when they see that their employer is investing in them and striving for a better work environment. This can be an effective counterattack to the common low morale of employees during a recession; when they worry most about job security. T&D can have dual benefit: staff learns important skills to be able to perform their job at a higher level and also become more committed to the firm. That raised level of commitment can mean an immediate impact on job performance and immediate increases in measurable productivity.
The benefits of having the T&D programs during recession outweigh the benefits of cutting them. The long term benefits don’t seem to be widely disputed. The debate of the short term need for profit and the long term need for development of human capital will continue to be argued by the logic on both sides. This is not a debate over wrong versus right, as both sides present strong arguments. Cutting training and development programs during a recession can have benefits because of the cost savings, but such cuts may stunt the long term growth of the organization.
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