Employee Training in a Recession

As organizations reassess their staffing levels, manyConsiderations and Caveats
employees are being asked to do more with less.Training for training's sake is fruitless. Learning a robust
Aside from reducing headcount, many organizationsnew technology over the course of a three day class
are cutting back on employee-related expenses, evendoes not equate to mastering it or deploying it in the
if they can provide long-term benefits. Examplesorganization, even for highly motivated and skilled
include application training and travel to user groups inattendees.
which employees can network and exchange bestConsider two examples. Boris attends a class on
practices. This article discusses the increasedCognos PowerPlay, a robust business intelligence (BI)
importance, benefits, and risks related to employeetool. Patty attends a class on Crystal, a powerful
training in a recession with respect to enterprisereporting application. Boris and Patty are both highly
systems.skilled end-users who have long expressed to their
Growing Organization Risksmanagers a desire to learn more about each
While understandable and often imperative for theapplication. During and after their classes, they are
continued survival of an organization, theexcited about the new features and possibilities now
aforementioned cutbacks promote a vicious cycle ofavailable to them. Both are excited to begin using their
increased organizational risk:new toys in their jobs.
- Organizations reduce or eliminate formal training andThis is where the similarities end. Boris simply has no
informal opportunities for end-users to learn how totime to use PowerPlay. Building cubes of data takes
better utilize enterprise systems.time and he is simply swamped with his daily
- This solidifies many end-users' bad habits andresponsibilities. While he finds half hour increments
suboptimal processing methods.every two weeks or so to play around, the phone
- At the same time, organizations trim staff, resulting ininvariably rings and he forgets much of what he has
more work among fewer employees. This meanslearned. His excitement for-and knowledge of-the
even less time for cross-pollination.product wanes and PowerPlay never gains traction in
Organizational risk is compounded if key employeesthe organization.
exit and, as is often the case, end-user documentationOn the other hand, Patty immediately begins writing
is lacking. Incumbents may scramble to figure out howCrystal Reports and distributing them to others
Alex ran regular interfaces, Neil matched invoices,throughout the organization. She builds on the
Julian filed tax reports with the government, and Nancyknowledge and excitement from class and joins online
created database backups. If Alex, Neil, Julian, anddiscussion groups promoting best practices. She is able
Nancy are no longer with their organizations, then theyto "kick the tires" on new reports and experiment with
are in all likelihood unable and unwilling to assist theirdifferent ways of extracting, manipulating, and
former employers in the event that their help ispresenting her organization's data to her internal clients.
needed.As a result of her efforts, many end-users now save
Often, the best case scenario is that jobs performedhours every week; they no longer have to manually
by ex-employees are partially understood by theircompile reports from disparate sources of information.
replacements. This may very well result in increasedNow, reports arrive via email as attachments with no
risk of error, financial irregularities, expensivefurther manipulation of the data required. Patty's
engagements with external consultants, or some otheremployer saves thousands of dollars in overtime and
highly undesirable outcome. In the extreme, a singlenow has access to accurate and actionable business
employee's departure may result in a missed payroll,information.
an eventual government audit, or security breaches.Conclusion
Opportunities and BenefitsThe benefits of employee training cannot be viewed in
Organizations with tight budgets may not need toisolation or in a vacuum; they must be considered
reduce headcount at present. There is a fundamentalwithin the context of the real world. The organization
tension between lean staffing levels and organizationalthat sends an overworked, overwhelmed end-user to
bench strength. Lack of widespread end-userclass is wasting its money. Forget the fact that the
application and technical knowledge is dangerous in theattendee's mind may be back at work throughout the
event that a key employee decides to walk. Yes,class. Knowing what an application can do-but
even in these economic times some employeesultimately not having the time to play around with it at
voluntarily leave their jobs for whatever reason.work-will result in attendees not utilizing their newly
To this end, organizations should consider expandingacquired skills and knowledge. Ultimately, neither the
employee training, not cutting back. Whetherend-user nor the organization will reap the benefits
employees are being cross-trained in differentfrom the class. Even if the end-user returns to the
functions or learning new technologies altogether, theapplication six months or a year later, it is highly unlikely
benefits of training can more than offset their costs.that s/he will remember
First and foremost, training mitigates the risk of keyWhile there are no guarantees that an employee will
employee turnover. Second, the mid- or long-termuse a new technology in his or her job after class
savings of training may more than pay for itself. Two(much less effectively), organizations can take steps to
super users with substantial skills and a globalmaximize the chances of this happening. Ensuring that
perspective may be able to do the work of three oremployees have the time to utilize new technologies is
four limited end-users, especially if they are skilled inessential. Holding those employees accountable to
different automation methods. Finally, while hardlydeploying them via annual objectives and performance
tantamount to reassuring nervous employees aboutreviews can also ensure that employers actually
their employment futures, training can send a strongbenefit from their training investment. Along with
message to attendees: the organization wants you topotentially reduced risk from key employee turnover
develop your skills. Despite current economicand greater internal system knowledge, application
challenges, we are committed to growing ourtraining can be a wise investment for an organization
employees' skills and abilities. This may reduce theeven in a tough economic environment.
likelihood of voluntary employee attrition.