It’s official - companies are not cutting training
By Martin Kornacki (29-06-2009)
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Employers are turning to training to fight the recession, new research shows.
An Institute of Directors (IoD) survey of nearly 1,000 business leaders found that the amount of training provided by organisations has not been cut during the recession, though the nature and type of training offered has changed.
Researchers found that eight out of ten organisations maintained or increased training in their organisations over the six months to May 2009 and nearly nine out of ten directors said their business planned to, at least, maintain investment over the next six months.
Mike Harris, IoD head of education and skills policy, said: “In previous recessions training has always been one of the first areas to be cut. In my opinion this is because it has been seen by senior managers and finance managers as a cost rather than an investment. There is a definite difference this time. Talking with our clients there is a real change.
“True, they are looking very hard at the value-add rather than the mechanistic forms of training. Standard training may be being squeezed but there are lots of examples of training associated with talent management programmes, leadership development, improved team working etc actually being on the increase.”
However, almost half of employers say they are focusing more on essential training, for example short courses designed to meet immediate business needs such as customer service training, rather than investment training such as degrees and professional qualifications.
The pressure on employers to keep costs down, while maintaining training, has also led many organisations to take training in-house, using experienced staff to train others, looking to share training with other companies and utilising e-learning solutions.
“These results show the fundamental importance of skills and training to IoD members. Even under considerable pressure, training budgets have not been hacked back,” said Miles Templeman, director general of the IoD.
“Many businesses are looking for opportunities in the downturn – the mood is firmly one of innovation and determination, not defeatism.”
Chris Humphries, chief executive of the UK Commission for Employment and Skills, which is working with the IoD to stimulate business commitment to training, added: “My message to all employers is: try to use this time to invest in the skills of your people, to build your capacity and business plan so that the minute post-recession opportunities or ‘green shoots’ appear, you are ready to make the most of them.”
The biggest casualties in business investment during the current downturn have been hospitality, entertainment and events.
And Harris concludes that for training organisations that can successfully demonstrate the return on investment of their proposals there are some real opportunities in the recession because many forward-thinking boards are taking a longer term rather than reactionary view to training their way through the downturn.
An Institute of Directors (IoD) survey of nearly 1,000 business leaders found that the amount of training provided by organisations has not been cut during the recession, though the nature and type of training offered has changed.
Researchers found that eight out of ten organisations maintained or increased training in their organisations over the six months to May 2009 and nearly nine out of ten directors said their business planned to, at least, maintain investment over the next six months.
Mike Harris, IoD head of education and skills policy, said: “In previous recessions training has always been one of the first areas to be cut. In my opinion this is because it has been seen by senior managers and finance managers as a cost rather than an investment. There is a definite difference this time. Talking with our clients there is a real change.
“True, they are looking very hard at the value-add rather than the mechanistic forms of training. Standard training may be being squeezed but there are lots of examples of training associated with talent management programmes, leadership development, improved team working etc actually being on the increase.”
However, almost half of employers say they are focusing more on essential training, for example short courses designed to meet immediate business needs such as customer service training, rather than investment training such as degrees and professional qualifications.
The pressure on employers to keep costs down, while maintaining training, has also led many organisations to take training in-house, using experienced staff to train others, looking to share training with other companies and utilising e-learning solutions.
“These results show the fundamental importance of skills and training to IoD members. Even under considerable pressure, training budgets have not been hacked back,” said Miles Templeman, director general of the IoD.
“Many businesses are looking for opportunities in the downturn – the mood is firmly one of innovation and determination, not defeatism.”
Chris Humphries, chief executive of the UK Commission for Employment and Skills, which is working with the IoD to stimulate business commitment to training, added: “My message to all employers is: try to use this time to invest in the skills of your people, to build your capacity and business plan so that the minute post-recession opportunities or ‘green shoots’ appear, you are ready to make the most of them.”
The biggest casualties in business investment during the current downturn have been hospitality, entertainment and events.
And Harris concludes that for training organisations that can successfully demonstrate the return on investment of their proposals there are some real opportunities in the recession because many forward-thinking boards are taking a longer term rather than reactionary view to training their way through the downturn.
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