{"id":19343,"date":"2023-04-11T14:25:01","date_gmt":"2023-04-11T11:25:01","guid":{"rendered":"https:\/\/www.talentlms.com\/blog\/?p=19343"},"modified":"2025-01-15T15:22:59","modified_gmt":"2025-01-15T13:22:59","slug":"workplace-training-economic-downturn","status":"publish","type":"post","link":"https:\/\/www.talentlms.com\/blog\/workplace-training-economic-downturn\/","title":{"rendered":"What can L&D professionals do during an economic downturn?"},"content":{"rendered":"

In times of economic uncertainty, companies often focus on cutting costs and reducing expenses to stay afloat. Unfortunately, one of the first things to go is often workplace training.<\/p>\n

Learning and development budgets may seem like an easy target for cuts. But reducing L&D strategies during an economic downturn is a short-sighted decision. In fact, 85% of HR leaders<\/strong><\/a> say training is a helpful element of company growth.<\/p>\n

Why invest in workplace training during a recession?<\/h2>\n

Recessions can be a challenging time for businesses. But it can also be an opportunity for innovation and growth.<\/p>\n

For instance, the 2008 financial crisis made many businesses cautious. But it was also the launching point<\/a> for companies such as Venmo, Uber, and WhatsApp.<\/p>\n

Tough times don\u2019t have to bring a halt to your company\u2019s growth. They can also be an opportunity for your organization\u2014especially your L&D department<\/strong><\/a>\u2014to make strategic training decisions that will pay off down the road.<\/p>\n

To come out stronger on the other side, you need to invest in your employees and prepare them for the challenges of the future.<\/p>\n

How the role of L&D should change<\/h2>\n

L&D professionals can help recession-proof their business<\/strong><\/a> by taking a proactive approach to training. Instead of responding to current needs, they must anticipate future opportunities.<\/p>\n

Employee training is critical to your company\u2019s success, and that doesn\u2019t change during a recession. But how you approach training does.<\/p>\n

To stay relevant and useful, you need to move from being an order-taker to being a strategic partner who can help drive innovation and growth.<\/p>\n

Instead of following a reactive training model (e.g., training in response to a new hire or a product launch), be proactive<\/strong>. Create a learning strategy<\/strong><\/a> that will prepare your employees for future needs. And prepare to defend that strategy.<\/p>\n

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4 L&D strategies to provide value during an economic downturn<\/h2>\n

So how can L&D provide value during uncertain times\u2014and prove that value to company leadership? Here are four tips to get you started:<\/p>\n

1. Align training with organizational goals<\/h3>\n

Learning and development experts can take action to drive change within their organization by researching the new skills employees will need to help the company reach its new goals.<\/p>\n

For example, say the business is shifting toward remote work. Employees will need training on how to effectively communicate and collaborate online.<\/p>\n

If the business is pivoting to a new product or service, employees will need training on how to effectively sell and market that product or service.<\/p>\n

Upskilling during a recession also ensures employee productivity.<\/strong> When you prepare your employees for future work by providing opportunities to learn new skills, you show them you\u2019re willing to invest in them. When employees feel valued, they\u2019re more likely to stick around and do their best work.<\/p>\n

2. Make training more efficient<\/h3>\n

Drive positive change in your L&D approach by finding ways to deliver training faster and on demand<\/strong>.<\/p>\n

Streamlining your training options makes them more financially viable and also makes it more likely employees will engage with and retain what\u2019s taught. Here are a few ideas for updating your offerings:<\/p>\n

Lean into virtual training.<\/strong> Use your LMS to deliver eLearning courses to your in-office and remote workers. Online training ensures everyone has access to the same quality training no matter where they\u2019re located. It also allows you to track training activity<\/p>\n

Set up custom learning paths within your LMS.<\/strong> Custom training options targeted to individual employee development plans<\/strong><\/a> ensure people are progressing within your organization. Plus, employees are more likely to engage with training that\u2019s specifically relevant to them.<\/p>\n

Adopt microlearning.<\/strong> Offering training in shorter, bite-sized chunks makes it easier to deliver training at the point of need. You also allow employees to learn on the go using a medium (mobile devices) they\u2019re already familiar with. Both can lead to higher engagement and retention rates.<\/p>\n

Make training a part of daily work life.<\/strong> Create a culture of learning in your organization with less formal (and less costly) learning opportunities. For instance:<\/p>\n