Why Training Costs Need to be Increased & not Cut Down


It has been a common reaction to cut training budgets for many companies meant for the employees especially during an economic crisis. While the company may consider this as an advantage, this is only short-lived as eventually, the organization may undergo capital loss. The loss is attributed to the de-motivation and unsatisfactory feelings by the employees because the organization cannot only compensate its staff but also support their development and learning.

With such risk, corporations should consider not cutting down the budget put aside for training instead, the business should strategize in increasing budgets for training and invest more. This in comparison to reducing budget costs for training helps in sending an optimistic message of valued workers who are important and needed in the cooperation. It also substantially signifies that the company believes in its workers and above all, investment in their employees is a priority. In this discussion, the need to increase the training budget especially when the economy is in crisis instead of tearing down the same budget will be explored.

Why Training Costs Need to be Increased and not Cut Down

As aforementioned, the first reaction when hit with a financial crisis is to offload their burden through training budgets. However, this is not the most ideal approach in such a time. Training should instead be increased. To support this, first and foremost, staff recruiting costs much more money than workers retention. This approach applies to corporations inclined to staff lay-offs. Employees surviving the retrenchment are essential in that organization and ensuring that they are trained not only implies that you value them but also need them. Recession times are usually accompanied by employees engulfed with fear. Therefore, training pushes out fear. One important factor in a successful business is the empowerment of its employees, and that is what training does.

The second reason why training should be increased is that it equips the workers with essential skills to outperform in a job. Trained employees are good at their job and can work under no or minimum supervision as they are well aware of what is required of them (Enaga & Imran, 2013). All businesses must be knowledgeable about the cost-effectiveness of keeping current workers. In the recession times, it is these employees who will use their high-level skills to deal with all types of customers and their issues. With the unwavering customer service and experience, loyalty is increased and the organization benefits. These positive outcomes may not be an immediate experience but will be appreciated in the long-run.

Third and probably the most important reason is that, during these hard times when all compensations may be cut off, training may be a gain considered most necessary. It assists individuals in improving the culture of learning, particularly for those just joining the workforce. Knowledge is power and is the only possession no one can steal from an individual; hence employee learning should be a valuable thing for an organization. The relationship existing between employee training and the organization’s market value during the difficult economic times has been observed to be greater where the significant focus of the business is in product innovation. In additional, since employee engagement is also critical, employee training serves as one way to ensure that. It is in these training assemblies that individuals get to share their views, ideas and get to ask about where they do not comprehend.

Through training, employees are reminded of the company’s objectives and goals. It also helps in the creation of market awareness and planning during hard economic times. Companies fail to see the advantage of increasing spending on training when they are having money problems because it does not result in direct revenue generation. However, it just may be the only way an organization thrives, particularly in such a time. It also comes in handy in tapping into the employees’ creative sides and confidence. When minds are opened, more ideas into problem-solving solutions are imminent and eventually, the company and the individuals profit.

Training is one way to ensure tailor-made for particular jobs. Some of the things employers get to learn during training are cost reduction, recruitments, and investments. This knowledge is applied nowhere else other than in the organization, especially in more ways that could reduce costs substitute for reducing training costs. Employees training strategies and the company’s objectives should go hand in hand. According to Frost (2014), in-house employee training is cheaper and is the best approach to developing their talents as well as their skills. Furthermore, it enhances teamwork where the workmates share ideas, knowledge and grow. Additionally, it establishes an understanding between the members, enabling a work environment that recognizes everyone’s contribution to achieving the organization’s goals and objectives.

The fastest implication sent through cutting down employee training budget is the undervaluation of employees in their field of professional development (Chopra, 2015). There is a high likelihood that employees are dissatisfied and demoralized, especially for those who put much effort into their work and value development while at it. It is common sense that dissatisfied workers are equivalent to lesser productivity.


Employees are important stakeholders in any organization as, without them, no cooperation will be existent; various tasks require operation by skilled individuals. Increasing expenditure to cover for their training is certainly a wise investment since it enables more understanding of how to ensure product thriving regardless of the tough economic times. Therefore, training costs should be increased rather than cut down…


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