When recession or even crisis comes, do you cut the training budget?

Probably. 

Don't be that HR manager. 

I invite you to analyse the implications and costs precisely from a numbers perspective, as a true business partner.

In times of recession and/or crisis, demand becomes less than potential offer, prices rise, purchasing power falls. Automatically this means for all of us, entrepreneurial or multinational companies, less demand for our products and services. So lower revenues, so lower profits.

This is the time when we think of our teams

How many of our people are truly indispensable to the business? 

How many do we really trust to face difficulties with us? 

When you've answered these questions, move on with your reasoning. 

In times of recession and/or crisis,, the number of available jobs is reduced. What I was saying, unfortunately people are being laid off. This unfortunately is debatable, but I don't want to be even cynical. 

You will say that this means for you that if you want to improve your team, to bring in even better professionals, this is an opportunity. There will be more people than ever before willing and interested in the jobs you offer, and you'll probably be able to have them in your firm at salaries that are much more competitive for you, the employer. 

But what do you do with those who are really indispensable for your business? The ones you don't want to lose because you would lose turnover and profit? Because replacing them would cost your company too much? 

Imagine cutting everything during this period. You cut training, you cut coaching, you cut teambuilding, that we're just getting back into it... 

What message do you send in your company to your people about their safety? 

One of uncertainty. And the insecurity and the feeling that they don't matter won't be countered by the fact that there's a crisis and no other jobs to be found. 

Don't do what everyone else does. 

Don't do as you did in the last crisis when you may have cut your training budget and certainly your marketing budget. 

Be different. This time. 

Swim against the current. 

Invest in your people. Raise standards. Increase the demands on you and on them. 

Get it right

If you have more than 50 employees, you certainly pay the disability fund, so you already have the money to invest in your people. In fact, in you too. And you're one of them. 

Have the guts to stand up to top management when they ask you to cut training. Because you have the budget. 

You just need to take a different step this time. 

If you need details on how to use the disability fund, write to me and I will support you with all the details. No strings attached.  

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