As the end of the year approaches, business owners will be thinking about planning for the year ahead. The first priority is often understanding ‘what are our targets and what are our costs’. With the prospect of 2023 being another difficult year of very challenging trading conditions, the immediate inclination is to keep costs as low as possible. Although this makes sense in the short term, can it be damaging in the long term?
Karen Sanders, Managing Director of The HR Dept, explains “The current reality for our clients is that budgets are tight, and every pound spent is carefully considered. On the other hand, we are in a candidate-driven market where talented employees are being enticed away to new jobs because the salaries, benefits and development opportunities are bigger and better”. Why does that matter to the way that budgets are put together each year? Karen says “It is short-sighted to consider spend in areas such as training as non-essential. We often see a direct link between management training and retention when we talk to clients or run employee surveys. People that might consider moving because there’s been no investment in their development or feel like they’ve been with a company for a long while and are stagnating will often stay because they are being offered much-needed line manager skills training.
We also see a correlation between the quantity and seriousness of people issues that are not dealt with effectively due to managers not being equipped to deal with them, which can lead to employment tribunal claims after situations have become irreparable’.
It can be tough to convince leadership that “non-essential spend” is even more important in today’s climate but the cost of replacing that employee on recruitment costs alone can be much higher.
“People leave Managers not Companies” the well-known quote of Marcus Buckingham is well scripted for a reason and demonstrates how far investment in and impact of training spreads beyond the individual who receives it. A Manager left untrained and leading their team ineffectively will result in resignations yet on the flip side a high performing manager who is leading their team well, motivating them, dedicating time to them will see the retention and performance of their own teams increase.
The return on the investment can be measured through increased staff retention levels and a reduction in recruitment costs since a direct correlation between management training and improved retention levels should be experienced.
At the HR Dept we can offer management training at all levels, from e-learning modules to management development programmes and leadership coaching. We are an approved centre of the Institute of Leadership and Management and our Programmes are accredited through the Institute. Contact us today to find out more!
