Blog Post

Why cutting your training budget is a false economy?

Providing effective training and development for your team can be a costly and time-consuming process.

And it’s often why training budgets tend to be the first to face cuts when a business finds itself in a crisis – either as a result of an unexpected sharp decline in revenue or recession.

But whilst cutting or removing an employee training and development budget might seem like a quick, simple fix to address short term cash flow issues. The potential for costly errors, low staff morale or high staff turnover created further down the line can make it a false economy that could be detrimental to your business in the long run.

The long-term benefits of keeping your training budget in a crisis.

Employee training is beneficial to business growth for a number of reasons, from improved staff retention rates to increased productivity, employee loyalty, and much more.

Improved Staff Retention

If a business is approaching, or is in the midst of a crisis the last thing they need is for their team to leave and have to be replaced. Recruiting and onboarding new team members can be an incredibly costly and time-consuming process. Finding and employing new people who have the same level of skill or passion as the person previously in the role is difficult and takes expertise.

That’s why it makes sense to invest in your existing team. Continued training and development is important to keep your people feeling like valued members of the team. Investing in their personal and professional growth means they’ll be less likely to look elsewhere for a new employer that is committed to this.

By investing in the development of your people, you’re investing in the development of the business.

Greater Flexibility

It’s vital that the people within businesses facing challenging times have the skills, resiliency and attitude to face them head on.

New technologies and processes are emerging every day. Employees who remain up to date with the latest industry innovations will be better equipped to find new solutions to issues the business encounters.

Maybe your team has acquired a set of skills that allow you to offer a new service line to your clients that gives you a competitive edge over others in the market?

Or, perhaps you’re able to charge your existing clients higher rates because the quality of work your team is producing has improved?

Without continued staff training, these situations wouldn’t be possible. The business may miss out on opportunities or may have to reduce rates to compete. And this would lead to a further decrease in revenue in the long term.

Increased Productivity

Productivity rises sharply when teams have the training, skills, knowledge and resources to complete tasks effectively.

They’ll spend less time correcting mistakes made as a result of inadequate training and managers will spend less time supervising and frequently reviewing work.

Improved productivity is closely followed by increased profitability.

And a workforce that can produce high quality results at a fast, but sustainable rate is key to getting any business out of a rut.

Take a fresh approach to training and development

Learning and development is vital for the continual success of any business. But “off the shelf” training programmes don’t always make the changes you want to see.

That’s why at Puritas we offer bespoke training solutions that put you and your people at the heart of everything we do. Enhancing skills and performance for the long-term.

Book your free consultation here or give us a call on 01473 760692 to find out more.