With the world of organizational mangement in a great state of flux, uncertaintly, and upheavel because of global economic conditions, many new questions are surfacing to help people get their bearings. One key question doing the rounds is this one:
“Do you think that companies will invest in their people development training in 2009?”
Hmm? Great question! And some interesting answers come up. Some individuals tend to think that “people” in organizations are simply necessary expenses on the spreadsheet that somehow take from the bottom line in an unfortunate manner. And investing in them is like throwing money down the drain. While others take the opposite view that people are the most valuable resource within an organization and feel that investing money in training them is wise.
Smart organizations see now as a time of evolution and, whilst they might have to have “right-sizing” take place to reduce head count, they realize, as an announcer on BBC Radio said the other week,
“For those companies who have people left, they had better be prepared to invest in their people because those are the indivduals that will be leading the revival of their organizations!”
Less smart organizations (in other circles they may be referred to as stupid), people development comes under the tab of “training.” Most organizations have seemingly reacted to the current market conditions and have reduced or completely abolished all training. In their eyes “training” is an “expense.” Their reaction indicates that they weren’t actually expecting a return from the training.
BIG MISTAKE!!!
Training and development of your people is an investment. Pure and simple.
If your organization does not see that training is an investment, then the likelihood of this reasoning is that your organization is probably making people redundant. And now they find themselves in the uncomfortable position of scratching their heads as to how to “survive.”
FROM EXPERIENCE
I was a statistic from the post-9/11 economic slide where I lost my new job as a behavioural and motivational change consultant before I even started. Why? Companies shut down their training & consultancy budgets out of fear and no real forward planning.
The current market is similar and from that experience, some research and what I know, the companies who will invest in their people in the downturn will be better prepared ahead of their competition who do not invest in their people. The result will be the preparedness and ability to take away market share from the competition and position themselves more effectively as market leaders.
What organization does not want more market share and trounce the competition?
PERSPECTIVE
Historically, most recessions last 11 months on average. Whilst this one may be slightly longer, think on this. If your organisation sheds jobs and shuts down training because things are “tough” and you are reacting to market forces (or perhaps over-reacting) it highlights a few things:
1. Likely your original business model and plan were incomplete or not fully comprehensive or at least inefficient. When things “appear” abundant people, teams and organizations can get complacent because they do not question the status quo.
2. You paid out on redundancies rather than put people on reduced pay and kept them upskilled in preparation for the turn. I believe some people would value still having a job on reduced pay than no job at all.
3. When the market turns you will be so far behind and be even more cash-strapped because you will not be able to find the money to invest in training because you will be investing it in recruiting – even recruiting some of the people you shed previously
The economy needs proactive, leading businesses to turn the corner. Not businesses who are reactive and collude that the market is tough. Sure it is a little bit more challenging but that is what creates opportunity. Seek out those organisations who are passionate about their people because they realise they are their most important asset. Assets are to be protected and invested in to ensure the greatest return.
For your future and that of your people, stop the “expense” and start to “invest”. Your future depends on it!
Without investment how can one expect growth? So what are you doing about it? What investment are you prepared to make for the life and growth of your organization? How are you balancing resources to insure that your people are maintaining their professional health?
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Dr Richard Norris MBA is Head of Global Development Lifestyle Architecture
He speaks, helps clients with executive & business coaching and leadership
Email | Linkedin | Twitter | Web | Skype: richardthemanofaction | +44 1738 827813
Image Sources: i.ehow.com, gaudiumdelingua.files.wordpress.com, ivygateblog.com
