Training Spend During Financially Hard Times

How has your company’s investment in training changed since the recession started?

During hard financial times training should be the very last area to make cost reductions just for the sake of reducing spend rate. The more qualified people that you hire and train; the more productive they will be and in turn increase revenue.

Our company has not specifically cut back on our training spend. However we did realign our training department and the way we identified what training was needed and for whom. This did in effect reduce our training costs which is a good thing in these times.

One easy method for reducing training costs is to implement PIPs (Performance Improvement Plans). By utilizing PIPs in your business, it allows for you to identify areas of improvement for each employee and commits the employee to not just sit back and wait for training but to also participate and agree to where they need to be and what THEY are going to do to get there. This puts a lot of the onus back on the employee to better themselves and alleviate the need for the training department to get involved.

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