The bad news?
- More companies currently have less confidence in their leadership teams.
- More companies currently feel they have the wrong people and skills in place.
- More companies currently have less confidence in their ability to change and improve.
- HR’s ability to change for the organizational good is currently lower than ever before.
Granted, during every economic seismic shift for the worse, businesses have to cut costs to stay alive when revenue plummets.
That means sacrificing staff including human resources, training and development programs including leadership development, and anything else that doesn’t have an immediate return in a downturn (like marketing).
The good news?
Even though employers cut spending on training by 11% in both 2009 and 2008, according to human-resources consulting firm Bersin & Associates LLC (from The Wall Street Journal article Leadership Training Gains Urgency Amid Stronger Economy):
- Now about half of companies plan to increase their leadership-development budgets in 2010 (according to a Bersin survey of 750 corporations conducted in May).
- Almost a quarter plan to increase spending by more than 10% this year.
- In addition, 88% of about 400 human-resources executives said they have recently revamped, or plan to revamp, their leadership-related training and development programs, according to a May survey by Mercer, a consulting unit of Marsh & McLennan Cos.
And according to HRmarketer.com’s Human Resource Benchmarking Data of almost 2,000 HR decision makers in 2009 and the first half of 2010 across all company sizes (see chart below):
- Leadership development as a budget priority is up 10+% this year over last.
- And coaching as a budget priority is up almost 5-10% this year over last.
Whether companies are retooling internal training initiatives and/or partnering with outside firms to launch new ones, there’s a lot of work to be done to ensure that the managers and leaders will be there in the coming years.
Let’s keep working on the good news.