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Training and development is often one of the first budgets to be cut during difficult times - yet it is one of the areas where significant performance enhancement and efficiencies can be gained

One of the key reasons training and development is so often given a back seat is that managers simply aren’t aware of its enormous benefits. Many consider it an optional activity that comes with a cost. But, what they don’t know is that there is an abundance of research to prove that it is a very worthwhile investment

Jeffrey Pfeffer, professor of Organisational Behavior at Stanford University, has spent his career studying people and organisations internationally in an attempt to understand why some companies win in the marketplace and others don’t. He has found that training and development is a key characteristic of high-performing organisations, those that have a commitment to develop their human potential.  

Training programmes are also a key driver in staff engagement according to research by international employment consultants Hewitt Associates. Cut back on it and you’re effectively saying goodbye to developing a highly motivated and engaged staff.

So the question is not, “Does training and development work? It is instead: “Why is training and development so critical?” In terms of the organisation, there are many good reasons to invest, not the least of which is staying up to date. Whether a service or knowledge-based industry, it’s essential that an organisation’s people are current with changes and developments. If employees are not continually being provided with opportunities to renew their skills and information base in accordance with developments, then you can expect your service and knowledge levels to drop.

Training and development is also a key factor in retaining quality people. Talented staff will be far more attracted to and more inclined to stay with an organisation which challenges and grows its people. Why would they choose to stay with an organisation that does not invest in its key resource? Organisations which do invest are also sending a strong signal to their people that they value and believe in them, over and above their daily practical roles.

However, the reality is that in the current climate many organisations are considering cutting back on training and development to reign in costs.

If you are a human resources professional or owner of an organisation where this is the case, then you need to firstly assess any current training and development activity for its effectiveness and relevance in the current climate. Ask yourself:
•   Given your particular business model, what are the key things your people need to be able to do in order for your organisation to be successful? If you’re not clear, brainstorm with your people to find those things.
•   Once you’re clear on what these key factors are, assess your current programmes against them – are they building the skills and behaviours necessary for success?
•   If you are confident that what you are doing is right, then gather evidence for your CEOs to show that it is making a difference.
•   Also, bring in advocates from organisations which are successfully implementing training programmes to discuss how it makes a difference, or organise field trips for your managers to three or four organisations where the benefits are being proven.
•   Encourage CEOs and secondary managers to commit to training and development themselves; they can be effective role models.

When it comes to designing programmes, traditionally employers have left it largely to employee discretion to pursue their own training and development programmes in line with their career. However, in tough times, guidance is needed to ensure that programmes are a) meeting the immediate business challenges and, b) taking the organisation to a place where it is ready to respond to economic recovery. In other words, if someone is learning about crystals to strengthen their work intuition, put a lid on it.

Right now, two of the more critical areas for training and development programmes are communications and customer relationship management.

There is ample evidence to show that training people in effective internal communications can mean the difference between high-performance and peak efficiency and low-productivity and employee insecurity. Keeping your people trained and up-to-date in customer management will ensure your organisation can continue to meet the expectations of its market.

To ensure any training and development programme is successful, it’s essential to reward and acknowledge your people in the process. Consider whether you have in place payment, bonus or recognition systems to encourage the skills and behaviours you are seeking to build.
The value of training and development is patently evident and indeed, organisations cannot afford to leave it until later. Investing now will create a more engaged, motivated staff with increased capacity to adopt new technologies, be more proactive and resilient. This will ensure that your organisation is well positioned to realise the opportunities that will emerge in the inevitable upturn.

Roger Collins, professor emeritus, University of New South Wales, is a leading Australian management consultant and a regular presenter for the Human Resources Institute of New Zealand www.hrinz.org.nz Beverley Main is on sabbatical.