In times of economic uncertainty, one of the first budget lines to be cut is often training. At first glance, it seems logical – training isn’t directly tied to revenue… right? I would disagree. The truth is, companies that stop developing their employees during a downturn often find themselves in a hard place when the market recovers. In fact, times when business is slow are exactly when an organization should double down on training. Let’s explore a few reasons why.
Retention is Less Costly Than Replacement
If business is slow, your employees notice. Your best employees are going to be looking for stability. Give them a reason to stay. Development opportunities are often cited as a primary factor for choosing whether to leave or stay in a role. When those opportunities disappear, your top talent may go with them.
Add on the fact that with less revenue, hiring is often frozen… meaning your teams are likely taking on expanded roles. Investing in their success not only boosts company morale, but also builds important skills needed to succeed in an agile workspace.
Crush Your Competition
If you’re experiencing a business downturn, likely your competitors are as well. If your competitors are cutting back on training, they just opened a door for you. While their service suffers and innovation stalls, you have the opportunity to excel.
Companies who invest in development position themselves to move faster and smarter, putting them in a great position for when the market returns to normal – and it will. Training promotes consistency, adaptability, and excellence. So, while others are on the defense, it’s your time to play offense and level up your key players.
Uncertainty Requires Agility
Being agile is a skill. Economic hardships often bring change – whether it’s new strategies, leaner teams, or working with fewer resources. Your people need to think outside the box and adapt to the changing market. But agility doesn’t just happen. It’s built through targeted learning. Now is the time to invest in targeted training topics like leadership development, cross-functional skills, strategic thinking, and consultative sales.
So… What Do I Do Now?
While it may feel like training is a quick way to save a few dollars, the impact can be long-lasting. Before slashing that development budget, consider how that decision will resonate with your teams. Instead of cutting the budget, consider a more targeted approach. Focus on skills that set your teams up to not just survive but thrive during an uncertain time.
