We are seeing massive employment cuts around the world as companies, both big and small, grapple with the first global economic contraction in over half a century. And although layoffs may be inevitable to keep operations afloat, companies need to think about their market position in the middle and long terms as well. The case for investing in people is most often made during booming economic times when the retention of top quality talent is a key issue. But, people-driven companies in particular need to continue to invest in their employees, especially if the company has been hit by significant layoffs.

Investing in people in this environment sends a clear message to employees that although tough decisions need to be made, the company still cares about its people, their needs, and their development. At the same time it is a way to ensure that staff are able to effectively meet ongoing and evolving challenges. Cutbacks and increased market competition during a recession often revs up the pressure on many staff. The right training and support programs can ensure that these challenges are met both effectively and efficiently.

Of course, like with any other investment, and especially in these times of scarcity, investments in people need to be selective, cost-effective, and directly tied to organisational performance. This can be done most effectively if training and development programs are designed and delivered with this as their underpinning principle. There are a number of approaches that companies can take to make sure their investment in people yields a good return for them. Below I summarise some examples:

1. Bring Training In House

In small firms training and development may occur informally and be conducted by supervisory or management staff. In addition, some general knowledge and skill acquisition or upgrading may be conducted through external providers. This may include training on communications skills, computer skills, interpersonal skills, and personal organizational skills, to name a few.

More commonly in medium and large firms, training and development may follow a more structured or formal process. Courses may be designed and delivered internally, but some outsourcing with respect to general knowledge and skills is still fairly common.

Irrespective of the arrangement, most companies do not explicitly tie their training efforts to specific organisational objectives, nor do they measure the effectiveness of their training in helping employees attain individual and organisational objectives. But, if done properly, bringing training and development in-house can yield at least three key advantages:

• Costs will be lower in the long run, as there is a markedly decreased need to go outside for future training;

• Internal training and development capabilities are enhanced, increasing the overall intellectual capital of the organisation; and

• Control over the specific content of the program and its evaluation vis-à-vis organisational objectives will be greater.

In addition, the in-house development of training programs can also work to create a greater sense of employee ownership and organisational pride.

2. Develop a Learning Organisation

A learning organization is one that makes learning a strategic objective. The learning organization ensures that individual learning strengthens the organisational knowledge and skill base, and that it expands organisational capabilities. To do this effectively, it is integral that training and development not only be keenly in tune with the organisation’s objectives, but that it actively and concretely supports them.

The learning organisation, by fulfilling its mandate, empowers employees because it gives them the right level of knowledge and skill, models the right attitudes and behaviours, and provides them with the necessary level of organisational understanding to be able to make decisions for the organisation that further its objectives. It makes employees not only more aware of the organisation’s strategy, but it also enables them to understand how to implement it within their scope of influence. Thus, employees feel they are valued and active organisational contributors, and this in turn creates a sense of employee ownership.

To keep the learning organisation motivated, however, excellence needs not only to be promoted as a value, but reflected in the attitudes and behaviours of all members of the organisation, actively recognised and adhered to in organisational processes and strategy, and ultimately rewarded when carried out effectively.

Creating a learning organisation is not a frill, but rather a strategic investment to build and maintain a competitive advantage. In difficult economic times the learning organisation can still thrive on the knowledge, skill, and creativity of its people.

3. Explore Alternative Approaches to Training and Development

The technological and socio-cultural barriers that constrain our way of thinking about training and development are quickly disappearing. Organisations, however, need to move in tandem to eliminate the intellectual barriers that prevent them from exploring and adopting new and better ways of doing things. The "it’s always been done this way" syndrome needs to be eliminated.

Innovations in the way training and development is designed, delivered, measured, and administered are quickly bringing down the cost of developing and delivering training in-house, as well as providing greater opportunities to ensure that it is explicitly linked to organisational performance.

Many companies therefore need to rethink how they invest and develop their human assets. The good news is that there is help available, as a number of niche firms in the Asia Pacific Region are beginning to offer access to these new tools and approaches.

Although the recession will undoubtedly blow over in the near future, the need to invest wisely in people will not lessen. Those who make such investments in a strategic way will emerge from the current recession stronger than ever. For this reason, organisations need to seriously look at how they can maximise their return on their human assets by considering innovative ways of developing their internal capabilities and building a learning organisation.

Rudi Czekalla Martinez is a Partner with Canadian Premier Training in Toronto, Canada and is currently developing business opportunities in Hong Kong and the Asia Pacific Region. You can contact him at: rudi@canadianpremiertraining.com.

^Top