When hard times arrive, the first thing that most businesses do is to cut costs, and this is an understandable reaction. Obvious items like wastage are the first things on the list, and rightly so. But next to come under scrutiny are activities with less "immediate" returns, like marketing, research & development, and
training.
But take a moment to think. Are these not the future of the business? If you want to attract customers (and who doesn't?) is it not in your best interests to continue with your brand-building, your promotions, your advertising? If you have R&D (and this can include research into market trends, customer opinions, and so on, as well as technical development) should you not be strengthening your offering at all times? And if you don't
train your staff, are you not weakening your effectiveness at all levels?
The truth is, a lot of these cost savings are actually cutting away your medium-term prospects. You will wait for better times to come, you will slowly reinstate them… and watch as more "switched on" competitors accelerate away from you. Too late to respond, you will be ruing the day you took the short term solution.
Remember, recessions end, and good times return. It's often difficult to think of this during challenging times, but in the not-too distant future, your market will be healthier, demand will come back, and you will want to be at peak strength to take full advantage of the opportunities ahead. And with the worst of the recession probably now over, that time is fast approaching.
So, you say, where does training come in? What are the Three Big Reasons why training will save you money? After all, it's a cost isn't it?
Actually,
training is NOT a cost, so let's put that idea to one side. Properly targeted and executed training is an investment, and with near-immediate returns it's one of the best you'll make. If you don't realise this (and there's more coming up to convince you) then it's simple: you'll never reap the benefits!
So, into the meat of what we are saying here. The first Big Reason is that you will, in a very short space of time, recoup all your outlay in efficiency and productivity... and then the benefits are there for ever... free of charge! Training gives lifetime improvements in skills, and when you identify where your staff are under-skilled, you can quickly see how to make them more effective. And don't think training is expensive! Training courses from any competitive provider cost hundreds, not thousands, of pounds, so how can you doubt your need for training?
Secondly, you may be weak in an area and think that recruitment is your only option. Sometimes, this is so, but recruitment costs you time and money, and you inevitably need to go through a period of "acclimatisation" as new staff get used to your operation, culture, and often your specific marketplace. All too often, you can overlook staff who already possess valuable experience and familiarity with your organization, and instead of a motivated and well-rewarded workforce, you have elements who are demotivated and even resentful.
This brings us on to the third Big Reason: that intangible, immeasurable factor of morale. Staff who are trained are not only better at their jobs but they feel valued and respected... and will be loyal to you. Productivity will increase, absenteeism and staff turnover will fall, management will be easier ... and through this apparently theoretical factor, your costs will fall again.
So, to summarise, you can save money in three ways by investing in training:
- Better skills improve results - "Quick Wins" in efficiency and productivity
- Recruitment costs fall - And existing staff have attributes that new staff lack
- Morale improves - Hidden savings go straight to the bottom line
Yes, Three Big Reasons why you will save money by investing in training. Your staff are your biggest asset ... so stay tuned in to this!
