Ask the consultant: Should HR cut back on training during a recession?

January 24, 2010 at 8:26PM

Q Do you think HR should cut back on training during a recession?

DERRICK HAYES WWW.DERRICKHAYES.COM

A Conventional wisdom affirms that training should not be cut during a recession. The firm should be readying itself to take advantage of the economic recovery, and training will prepare its people to emerge from the recession with greater competitive insight and skills.

While acknowledging the value of conventional wisdom, a firm still has to manage its constrained cash flow. Employee know-how development and organizational culture enhancement are two processes that can enrich both talent management and strategic preparation. Both should be aligned with a company's strategy before any further training is undertaken.

The values of both of these processes should be assessed in light of the competitive position the firm wants to reach during the economic recovery. For example, a product leadership strategy might demand creative know-how and a risk-taking culture; a customer service strategy might demand know-how in offering unique customer solutions and a culture of empowerment; a best-cost strategy might demand know-how built around gaining efficiencies and a culture that supports standardized practices.

Once a strategic focus is confirmed and aligned with employee know-how and organizational culture requirements, a training agenda can be validated. In turn, those trained can see their roles in relationship to a strategy. This should enhance their intellectual involvement in training programs and motivate them when business picks up.

JACK MILITELLO, PH.D.

Professor of Management

University of St. Thomas

Opus College of Business

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