Black republicans 08

These are certainly tough times to be running an organization of any kind. Chances are regardless of your business, financial pressures have taken a toll. And the future is anything but clear. That’s the new normal, as uncomfortable as it may seem.

In tough economic times, staff training is frequently a function that is eliminated. On the surface that makes sense because the cut may be easier to absorb there than something more directly related to the organization’s mission or goals. However, this is a very short-term view. Many leaders are really good budget-balancers but thinking long term and understanding a strategy to continue to grow, even in tough economic times is a taller order, but an important one nonetheless. Why is it that even in tough economic times, some organizations continue to grow while others go into hibernation. Here are some reasons why staff training could keep you growing.

1. You can do more with less. What better time is there to make sure that employees are learning new skills? Depending on your business, better trained employees might mean fewer employees or lower levels of supervision.

2. Training reduces turnover. In nearly every study ever done, staff training is the one event which universally reduces staff turnover. And we all know about the costs of staff turnover. It makes perfect sense. Offering training reminds employees that the organization is committed to their growth, resulting in increased feelings of loyalty. Actually, this factor alone could make staff training programs pay for themselves.

3. Training develops “bench strength.” If you have done a good job of staff training and development it will save you thousands of dollars in recruitment over the next 10 years; projected to see a major departure of the baby boomers into retirement. Look at your group of middle managers and front line supervisors. Who there is ready for promotion?

4. You become a learning organization. When everyone (very top to very bottom) in the organization is involved in learning, it opens the door to process and administrative improvement. Suddenly you become better at problem solving and at identifying avenues for improvement.

5. You are seen as an employer of choice. The more active your organization is in training, the easier and less expensive your recruitment effort becomes. Word gets into the community that you are an organization committed to the success of employees.

To be effective leaders in 2011, we need to understand both balancing the budget as well as planning and investment. More than likely, to worry about one or the other will put us on a path toward organizational incapacity, irrelevance, and demise. The October 15 issue of the Open Minds Circle (behavioral health consulting firm) talks about the importance of anticipatory leadership. “Proactive positioning involves thinking ahead and strategically positioning your organization for the market of the future.” So say the folks at Open Minds.