Training budgets slashed due to downturn

More
than half of employers have cut their training budgets over the past year, in
response to the ongoing economic downturn.

A
poll of 264 HR professionals by Croner Consulting reveals that 52 per cent
report that their organisations’ training budgets have been reduced over the
past year, 28 per cent say training has increased and 20 per cent think it has
not changed.

Richard
Smith, HR expert at Croner Consulting, said the age-old problem of evaluating
return-on-investment of training means that, when times get tough, training
takes a back seat because its benefits cannot easily be measured in pounds and
pence.

"The
cut in training budgets is ironic given that the tough times demand smarter and
more efficient employees. Like any budget, training must be justified as having
a positive impact on the bottom line, which I firmly believe it does, but is
often difficult to prove.

"The
survey indicates that many companies have cut their training budgets. However,
if implemented effectively, training can be extremely cost effective, and be a
crucial factor in ensuring companies survive tough times and emerge fitter and
stronger with a competitive advantage,” he said.

By Ben Willmott

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