Is training and development of employees an expensive luxury in an economic recession? Essay
Is training and development of employees an expensive luxury in an economic recession?
The most important asset in any organization is the knowledge its employees have - Is training and development of employees an expensive luxury in an economic recession? Essay introduction? The current scenario is when the economy is knowledge driven, thus employee competency levels have direct relationship with their workplace productivity and thus organizational bottom-lines. The business environment is ever changing and hence for any organization to remain competitive, it has to focus on continual development of the employee skill set.
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During recession, we have seen companies reducing on their overall costs by cutting down the training and skill building exercises. However a study has shown that fewer companies in the developing countries are treading on this path of cost cutting. They are trimming other expenses but are not compromising on the employee competence building programmes. Hence these companies in the developing world will have an advantage over their counterparts in the industrialized world that have decided to cut down on training and skill building programmes.
The intangible cost of untrained employees and lack of knowledge is higher than the cost of training them. Misunderstanding resulting from lack of training may lead to a loss of time and money, and also spoil customer relations and business reputation. Also another aspect is that business regulations are constantly changing and employees need to be sensitized to these changes else if there is any non-compliance with the law, it may lead to heavy losses for the businesses.
Keeping all these factors in mind, it can be concluded that training and development of employees is not an expensive luxury in economic recession.