A recent survey conducted by the Chartered Management Institute revealed that, despite the continuation of a tough economic climate, almost two thirds intend to engage in some form of CPD programme throughout 2011. Ruth Spellman, chief executive of the CMI, reports.
Most employers agree that developing managers and future leaders is crucial to their long-term success. Yet, 43% of UK managers also anticipate that their training budgets will be slashed again next year resulting in business-damaging skills shortages. Certainly one thing is clear: The tough economic conditions experienced in 2010, combined with the knock on effects of aggressive deficit reduction measures outlined in the Comprehensive Spending Review, have already forced business leaders to look at yet more ways to save money. Unfortunately, training budgets are often the first to suffer.
All this means that business leaders will need to embrace the concept of 'training on a shoestring' in 2011. Doing nothing is not an option; they need to consider alternative ways to continue to develop the skills of their staff, or risk failing to put them in the best possible position to take advantage of the upturn when it comes. What businesses need is a cost-effective way of continuing to offer training that can be accessed quickly and easily, as and when support is required.
"Business leaders will need to embrace the concept of 'training on a shoestring' in 2011. Doing nothing is not an option; they need to consider alternative ways to continue to develop the skills of their staff, or risk failing to put them in the best possible position to take advantage of the upturn when it comes."That is why the burning question on the lips of most in the HR profession revolves around the most effective method.
All the evidence suggests that online training has become increasingly popular with employees this year. A survey of 2,000 UK workers, conducted by CMI in March revealed that 35% of staff would rather go online when looking to brush up on their skills – second only to seeking advice from trusted colleagues (36%).
Many organisations are also, understandably, concerned about the cost of training. In terms of the initial financial outlay, time spent away from the office and how long it takes for any training and development to impact positively on the business is a major worry. Of course taking people away from their day job has a financial implication, but what about the cost of lost business if people don't have the right skills to win or retain clients? Employers surely need to consider overall return on investment. What is critical is ensuring that training and development is aligned to strategic objectives of the organisation, measured and put into action as soon as possible.
With this in mind it is encouraging to discover that despite the current economic climate, a significant proportion of employers now have a specific budget dedicated to the development of their management teams. This finding emerges in research published by the Chartered Management Institute and it suggests that there is clearly recognition that the mistakes of the early 90s must not be repeated.
Back then, many businesses reacted to the slowdown by cutting costs and what they viewed as 'non-essential' activity, only to find they didn't have the resources to cope with an upturn in fortunes. Some might argue that the decision to halt management and leadership development could be blamed in part for the skills crisis that we are currently experiencing.
But what is really intriguing is how senior executives are following in the footsteps of Generation Y. Reacting to concerns over spending time away from the office, the study reveals a surge in the use of new media amongst senior managers and directors as a route towards skills development. It seems that those in senior management roles are determined not to be outshone by the so-called 'Nintendo Generation'.
These same individuals have also increased usage of resources such as online videos to learn from others and many are also making use of discussion forums. CMI's own resource, called ManagementDirect, has seen a leap in user figures, with 35,000 people now registered to download anything from a podcast or video through to management checklists and book extracts. It seems that finally there is synergy between the need to reduce costs, yet retain effective development – and much of this is coming about by adopting technology to learn from, and network with, others.
It is a move that should be welcomed. With the fact that the workplace is increasingly blending younger and more experienced workers, the notion that they are learning from each other or adopting each others' approaches to development is a good thing. It certainly reflects the marketplace in which most businesses operate and that can also only be good for business.
But a note of caution should be sounded: Of those who have made use of online resources in recent years, the majority of respondents described a mixture of face-to-face and online activity. Many traditional methods for developing skills such as on-the-job training, or through formal qualification remain popular. The message, from both individuals and their employers is that to succeed there needs to be a blended approach.
"A blended approach to development enables organisations to 'deliver more for less' and provides greater return on investment. Why? Simply because it allows individuals to work at their own pace or use a range of methods to suit different learning styles."
According to one of the Chartered Management Institute's clients, NPS Property Consultants in Norwich, the benefit lies in creating something to suit each person's own level of experience and learning style. The videos, checklists, best practice guidelines and quick-read documents that they make use of have proved to be the most popular amongst their staff. Indeed, one of the company's senior managers recently said that after using online learning tools coupled with a development programme "we have seen a noticeable improvement in employee engagement levels, an increase in recognition of the company's values, better communication with line managers and improved knowledge among staff of their individual objectives."
NPS is clearly an exemplar of best practice. My worry, though, is that by failing to offer adequate opportunities for personal development, bosses in other organisations risk losing top talent, deepening the already low levels of employee engagement and creating skills shortages at a time when UK plc most needs a skilled workforce to help steer it towards recovery. Businesses cannot afford to lose another 12 months of training and development in 2011.
If anyone is in any doubt as to why, the facts speak for themselves. A blended approach to development enables organisations to 'deliver more for less' and provides greater return on investment. Why? Simply because it allows individuals to work at their own pace or use a range of methods to suit different learning styles. Ultimately, though, employers need to take a careful look at their chosen approach to make sure they are in a position to develop the skills at their disposal; either that or let their competitors build an advantage through a better trained workforce.
Ruth Spellman is chief executive of the Chartered Management Institute
