The Real Costs Of Training

Training, management development, skill enhancement, corrective instruction; regardless of its label, personnel development is often viewed as a postponable expense during difficult economic times. In many corporations, one of the first expense items cut is training or development related.

Having worked extensively with management, we have found the following to be true.

The Common Problem

Management often postpones or eliminates a large portion of the employee training and development during recessionary times. What has become apparent recently is that employee training and development may be postponed in good times as well because there isn't the staff to cover for the people being trained. In effect, the company's investment in staff's skills and abilities has been postponed. Managers rationalize that profit margins, competition, the economic climate or employees do not warrant this expenditure. They complain about the "many" costs involved with training, including salary dollars. Solutions to planning questions and roadblocks appear elusive. How do we select the right people, the right correct course, or identify the individual's developmental needs? Management also tends to believe that the organization does not need training, and if alternate or enhanced skills are required, another candidate with the requisite skills is surely available for hire.

If you think training is expensive, try ignorance.

Forward thinking organizations view training and development as an investment; a method to maintain or improve the company's marketplace competitiveness; a method to enhance skills or correct staff deficiencies, to avoid liabilities, to improve productivity, to prepare for the future. These companies recognize that detrimental costs are due to lack of training and development, resulting in the loss of productivity and competitiveness in the market, and misspent management time.

Computer training is one development area often overlooked. In today's technological environment the ability to fully utilize computer technology directly impacts the cost of doing business. Utilized well, computers improve productivity and reduce downtime, help staff determine and structure production schedules, manage the accounting, track inventory and cost of sales, prepare proposals, quotes or bids, and maintain a client mailing list or database. Computers are an integral part of today's business environment. Not utilized properly, computer systems equal money down the drain. Ask yourself--is your company or staff taking full advantage of the power of computing? Do you measure computers in megahertz and staff by the hour? Why doesn't your organization make the investment in training?

Where does it all start?

Management is often the core of liabilities related to training, supervisory skills and other human resources areas. In today's litigious society, management's awareness of changes in employee relations law and practices is crucial to avoid potential liabilities, penalties and controversial employee relations issues.

Assess your organization's position on computer training and management development. Is the organization keeping pace with the changes? Is training and development really a postponable expense? Make a smart investment--take steps towards growth and implement a solid training program for your management and personnel.