In the fifteen years I have been practicing as an Executive Coach in London, I am proud to have helped many clients transform their personal and...
Making the case for Learning and Development during a recession
If you’re like most companies, your training budget is probably a little leaner than usual. That’s because corporations tend to cut back on training in times of economic downturn. However, this can be a mistake – especially if your employees feel the pinch as much as their employers. Learning and development can help your employees cope with stress at work and keep them from leaving for greener pastures. While it might not seem like it at first glance, corporate training during an economic recession can be a good financial investment for any organisation that cares about its people and wants to keep them happy and productive over the long haul.
The business case for keeping up with corporate training during a recession is evident.
It’s an investment that pays big dividends regarding employee retention and company performance.
Corporate training effectively retains talent, which can make or break your organisation during challenging economic times. When you consider how much time, money and effort go into hiring new employees only to lose them later on due to a lack of training opportunities within your organisation—and then multiply this across every employee who leaves—it quickly becomes evident why corporate training is so necessary: by improving workplace culture, you keep your best people around longer. In the US, only in September 2022, over 4 million people quit their jobs.
Keeping up with corporate training keeps you competitive.
- 48%of American workers would switch to a new job if offered skills training opportunities
- 8.6% as the average salary increase for American workers who recently participated in an upskilling program -- $8,000 on average higher than those who did not
- 65% of workers believe employer-provided upskilling is very important when evaluating a potential new job
Even when the economy is booming, finding good employees is not always easy. Many companies have reported that hiring top candidates for open positions has become increasingly difficult because they lack qualified applicants. But suppose your company offers training programs relevant to current industry trends. In that case, you'll be able to attract more individuals with the skills needed to do their jobs well—and perhaps even poach some of your competitors' best people!
Learning and development can help keep up with technological changes in an industry or business practice.
With so many technological advances being made each year, keeping up-to-date on new developments is vital if you want your business or organisation not only to survive but thrive in today’s competitive marketplaces. By participating in learning opportunities that provide regular updates on how new technologies are affecting various industries—whether through webinars or face-to-face workshops conducted by industry experts—you'll ensure that your employees have the information they need at their fingertips when making decisions about technology adoption within their respective departments; this could mean anything from adopting new software systems for company operations or switching over from old hardware platforms due to obsolescence issues arising from outdated components used within these setups!
Learning and development help employees deal with stress.
Employees' mental health is a big issue. Pressure and stress caused by a recession can overwhelm employees, especially those already suffering from depression or anxiety.
There are three main types of stress:
- A lack of control over what happens at work (for example, being given tasks or projects that you disagree with)
- A lack of recognition for your efforts (for example, not receiving regular feedback)
- A lack of a clear career path within your organisation
Corporate training is an excellent financial investment, especially during tough economic times.
In a recession, learning and development are one of the best investments you can make. By keeping up with the latest trends in your industry, you keep your workers current on new technologies and processes that will help them produce better work results. And by encouraging employees to develop their skillset through various kinds of training you're also helping them stay up-to-date so they don't feel like they need to leave their current roles to advance their careers.
Investing in employee growth when people are worried about losing their jobs or having trouble paying off debt (or both) will show them that they can trust you as an employer who places a high value on personal development over profit margins alone.
The case for learning and development is clear. By keeping up with corporate training, you can keep turnover low, retain high-quality talent and keep your workforce competitive. It’s also an excellent way to improve workplace culture and help employees deal with stress. The bottom line is that corporate training is worth the investment—especially during tough economic times.