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Why Organisations Should Keep Investing in Their People in Challenging Economic Times


Focus on Your Efforts - Develop Your People - Optimise Your Results By Jocelyn Bérard M.Ps. MBA Vice President, Leadership and Business Solutions, International, Global Knowledge

In challenging economic times, it is critical to stay on top of your game. Within organisations, individuals who are affected by economic restructuring need to focus on prioritising and performing at their absolute best. To enable these individuals to succeed, organisations need to develop and optimise their people—and take advantage of the results—to ensure success over the long term. Here are some tips for achieving these goals:

Prioritise or Re-Prioritise. Organisations must re-prioritise to weather difficult times. Each employee and leader needs to use this focus point to effectively contribute to the organisation’s success. Ran Charan’s book, “Know-How,” highlights eight essentials skills that leaders need to succeed. Charan states that the organisation must set clear goals for itself; further, the organisation should ensure that each employee and leader is focused with explicit priorities that are clearly aligned with the organisation’s goals. Effective performance management practices are now more important than ever, but don’t put the emphasis on the performance review. Instead, focus on the critical contributions from each employee. Consider a contribution management system.

Support Urgent Business Priorities. Identify how organisational development actions support specific and urgent business priorities such as increasing or maintaining sales, retaining customers, cross-selling, improving customer service, maintaining gross profit margins, and reducing operational costs. During difficult times, employee development actions aligned with these types of business priorities will have more clout in the eyes of senior executives. In addition to the obvious functional impact, the development of employees can also maintain or boost morale in a period of uncertainty. Executives know that good morale is key to maintaining productivity and avoiding water cooler conversations proclaiming “the sky is falling.” Providing development solutions is an effective way for an organisation to send a strong message that it believes in its people and is willing to invest in their growth.

Develop the “Survivors.” The reality is inevitable; some organisations will have to layoff employees. And often, as a consequence, the “survivors”—the employees still on the job—will have to perform at a higher output and take on the work of employees who have left. These are the employees that organisations should invest in to optimise their capabilities and help them perform at their best. Developing the “survivors” will have a positive impact on morale and productivity. It will also keep these employees moving forward with a future-focus and the ability to clearly see the impact and results of their actions.

Re-Evaluate Training for New Employees. Many organisations are still onboarding new employees, especially in industries such as retail and hospitality, where the normal turnover is quite high. The decision to cut the onboarding of new employees is short-sighted, as corporate results are almost always immediately affected. However, reducing the time it takes for new employees to become productive is key—developing onboarding and training activities that result in productive employees in the shortest period of time will deliver more to the bottom line.

Retain Your “A-List Players.” Even in this challenging economic period, this point is critical—your best employees and leaders can be poached by your competitors. Investing in growing and developing your best talent is a necessity. After all, your company will not always be in a state of economic turmoil or uncertainty and you will always need high-quality talent.

The Customer is Always Right. During these economically challenging times, this adage is more relevant than ever! Customers, as always, remain sensitive to price and quality; however, they are much less patient with poor service as they are now overly-solicited to purchase the goods and services offered by you and your competitors. Cutting back on customer service training could be a mistake in this time of heightened competition. Customer-facing employees’ performance is directly linked to key business measures such as customer retention, customer service, and sales.

Survival of the Fittest. Tough economic times reinforce the concept of survival of the fittest. Organisations that maintain their focus, develop their people, and optimise their results will survive to take market share from those organisations that don’t make it through. Employee development and training are essential to ensure that the best employees are retained and continue to function at their best performance level. This doesn’t just apply to organisations; this is also a reality at the individual employee level where the best performers are most likely to keep their job. Being at the top of your game as an individual and working for a company willing to invest in employee development are requirements during economic uncertainty.

What Method Works for You? Don’t reconsider whether you will conduct training; rather, reconsider the method of training delivery. Contemporary methods for delivering training provide an alternative way to eliminate costs. Delivery modalities such as virtual or remote classrooms, e-Learning, Live Meeting, and podcasts can help optimise training while avoiding the costs of travel and accommodations. However, use good judgment when selecting these modalities as some training content, especially interactive skills such as sales, leadership, and communications, are difficult to deliver through online or remote methods while assuring learning success.

Learning is More than Training. Consider the 70-20-10 rule. As an adult, if you think of everything you know and can do today, it is likely that 70% of that was learned by doing—when opportunities were presented to you, you jumped in and you learned. And 20% of what you know comes from what you learned from others. The last 10% represents what you learned from formal training. One could argue that these numbers could be 60-30-10 or 50-30-20 and still be appropriate. Remember that the 10% to 20% of formal learning enables you to apply new skills and knowledge and continuously learn and grow. The key message: a vast majority of what we learn comes from various sources. So, in challenging economic times that may force learning and development departments to determine how to maximise their investment, remember the 80% or 90% of learning that occurs outside formal training. Consider high-impact formal development for your organisation such as customised solutions that are linked to critical business objectives. Integrate these solutions with the learning available from other job activities and applications, such as peer coaching and blended learning opportunities like the combination of e-Learning with group coaching.

Develop a Succession Plan. The critical issues of the aging workforce and the need to prepare a succession plan for baby boomers who are nearing retirement do not disappear with economic challenges. Even if a financial downturn causes some people to delay their decision to retire, we are all aging! So preparing for succession is as important today as it was before the recent economic changes. Remember: implementing a successful succession plan for expert or leadership positions takes time; choosing to create a short-term gain by targeting the area of succession management for the purpose of budget cuts will have long-term, strategic costs that may outlast the economic downturn. Don’t forget, recessions are short while developing strong future leaders takes time.

For more tips and strategies on maintaining your learning and development activities during economically challenging times, contact:

Jocelyn Bérard, M.Ps. MBA,
Vice President,
Leadership and Business Solutions, International, Global Knowledge
jberard@nexientlearning.com | 416-964-8688 ext 2323


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