Is training an investment or a cost from your perspective?

Words of wisdom for this week.

“Change. It has the power to uplift, to heal, to stimulate, surprise, open new doors, bring fresh experience, and create excitement in life.” Leo Buscaglia

During the years, many of my clients have chosen to see investing in their people as an investment and not as a cost of doing business. Others have cut back on training when the economy was spiraling down or out of control. Their rationale was: cut back, we will invest in our employees when there is more cash available.

So, what can you do if your business is in a stagnant mode or declining? What can you do if customers are harder to find? Three options: a) Wait it out patiently. b) Do nothing. c) Use your available resources to improve the motivation, morale, skills, attitudes and performance of your most valuable asset – your employees.

Training is a cost:

  • when it is done poorly.
  • when it is done too late.
  • when too little is done.
  • when it doesn’t touch everyone.
  • when it is not reinforced.
  • when it doesn’t relate to where you are headed.

Training is an investment:

  • because it tells your people you care about them.
  • because many people are asked to do more in difficult times, but they are not given the skills, recognition and appreciation needed to weather the storm.
  • because your only source of revenue is your people. Yes, yes, I know. You need trucks, equipment, computers and pencils – but in the long run, it is your people who make effective use of all of these capital expenditures.
  • because your people touch your customers every day. What messages are they sending as they sell to them, collect from them, service them, etc.?
  • because there are two ways to improve the bottom line
    • 1) generate more income
    • 2) reduce redundant, wasteful costs.
    • Your people are responsible for both.

I could go on, but I would like to leave you with a simple question. Do you see training as an investment in your present and future success, or do you see it as a cost that can be put off until there is more cash in the bank? During challenging economic times the companies that continue to invest in employee effectiveness always emerge more successful than those that cut training budgets and have a wait and see mindset.