Downsizing and consolidation are the words often used and applied to many Corporate Strategies when companies hit hard times. Such matters have again been brought to the fore again with economists making gloomy forecasts for 2008 concerning economic slowdown and economic downturn. So, what does this mean to your staff in terms of their development?
Even in a contracting market companies need to ensure they remain competitive. To do so they need to invest in their employees. When downsizing the results are staff are repositioned, new teams formed, new managers appointed and amended business processes put in place. That is why staff development, training and teambuilding should remain just as important in a depressed market as in a buoyant one.
However, many companies are too quick to jump on the bandwagon and see cutbacks as the antidote to their difficulties. This is short sighted and in the long term could leave the company weaker. Any cost cutting measure is not worthwhile unless it helps to strengthen the business allowing it to emerge in a position of strength when the market recovers.
A realistic alternative to cutbacks is the outsourcing of training to professional companies. Its popularity is growing with the business elite such as the FTSE-100 and is an alternative worth giving serious consideration to. Outsourcing has the maturity and capability to play a key role in driving staff development. Over half the FTSE-100 companies have already embraced the outsourcing of internal services.
In the field of staff development and management training prime examples of outsourcing are Barclays Bank and even the Government with their Civil Service College in Sunningdale. This has been the subject of a Public Private Partnership with an outside training provider. Call of the Wild Ltd also have experience of this: with a large part of our corporate training business coming as a result of outsourcing by our client companies.
However, some are still reluctant to embrace the concept and prefer the perceived easy route involving for example trimming staff, marketing budgets and staff training. Although these will cut costs in the short term they are a false economy as they can undermine the competitive edge of the company. With outsourcing the company can concentrate on its strengths and maximise its opportunities
