It seems that everyone is worried about the economy. I get it – times are weird. I was just on the phone with a partner this morning, and we were reflecting how a fixed cost in our planned event had DOUBLED since last year.
And its not that our vendor is taking advantage of the situation – their costs are going up significantly.
Many businesses and industries are feeling the squeeze of reduced margins along with skyrocketing inflation. In board rooms and on Zoom calls everywhere, teams are having hard conversations about what to cut to stay profitable.
But whatever you do, DON’T stop investing in the growth your team.
Cutting learning options is short sighted.
In a publicly-traded company, individuals often worship the value of the bottom dollar of the balance sheet. Shareholder value is of highest importance, and showing your business to be “profit generating” is a core essential value. That’s why its alarming to hear how training initiatives are being paired back to accommodate bottom lines.
Let me first state the obvious – training programs need to be constantly re-evaluated. If a program is no longer being utilized or does not yield a return on investment than YES, they need to be redesigned or even cut.
With the cuts I’m seeing I’m not talking about pruning – I’m talking about clear cutting the field.
I’ve been there before – the profit margin is tight and its tempting to “trim the fat’ with training, which seems in the moment as dispensable.
But what I see right now can be likened to skipping an annual physical.
We know what we should do – we should go get that physical. But there is nothing wrong with you. Maybe you don’t have time or the bills are tight. And you cancel the appointment – tell yourself you’ll reschedule later.
6 months becomes 1 year. 1 year becomes 2. And suddenly your regular practice of going to your primary care physician goes to the wayside.
Suddenly, you have an unexpected pain. Or you end up in the emergency room with unexplained symptoms. You realize that the issues you are being treated for would have been easily caught and resolved by your annual physical.
Businesses are tempted to neglect their team’s learning health when things are running smoothly. Even more when things get tight and a need is not felt. Suddenly its 1, 2, or 3 years down the road and the issue compounds.
The wake up call may be a large group of dependable managers retiring, an increase in resignations or losing a large customer due to problems.
Training programs (even ones that are stripped to the bare bones) keep the health of the organization in mind. Don’t be tempted to cut critical programs just to pad the bottom line.
Are you looking to optimize your training function? Facing cuts but want to ensure that you don’t get behind? We offer customized solutions tailored for your team and unique situation.
Schedule a call with us today to learn how you can continue to drive team growth forward.