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4 WAYS L&D CAN DO MORE WITH LESS (AND THRIVE DURING A RECESSION)
* August 25, 2022
* by Steve Penfold
Following years of transformation in response to COVID-19, more challenges and
changes are on the way. Faced with increased economic pressure, businesses are
rethinking their strategies. While organizations’ learning needs are growing,
budgets are limited. So, how can Learning & Development (L&D) do more with less,
and even thrive during a recession? Read on to find out.
HOW THE RECESSION WILL IMPACT L&D
Over the past couple of years, businesses have had to deal with many challenges.
A global pandemic, political chaos, unpredictable markets, the Great
Resignation… the list could go on. The economic pressure this has created means
big changes for organizations. Budgets will be cut. Headcount will decrease.
It’s no secret that L&D is often one of the first departments to come under
pressure in a recession, and L&D teams are already struggling. According to
research by the Brandon Hall Group, over half of L&D teams don’t have enough
budget, time and people. If cuts are made in haste, they could seriously impair
productivity at a time when companies need it most.
The response to the pandemic has shown how L&D is fundamental to navigating
periods of change. So, it’s not surprising that the Brandon Hall Group found
that 66% of organizations place competencies and skill development as their
number one focus in 2022. With limited budgets, that means L&D will be asked to
do more with less.
NAVIGATING THE IMPENDING DOWNTURN
If your organization wants to survive the downturn and even come out stronger,
they need to start preparing and driving efficiency now.
For L&D teams, that means exploring new processes and technologies that can
enable:
* Working at scale: If you need to increase output or respond quickly to
change, you need technology that supports you. Otherwise, you may have to
outsource production to meet your business needs. This increased cost isn’t
desirable during an economic downturn and may not even be possible.
* Capturing expertise: Subject Matter Experts (SMEs) and stakeholders are
essential to the success of all your organization’s learning. Before any
redundancies are made or roles shifted, you need to capture their expertise
and make it easily shareable. If this doesn’t happen, you risk new skill gaps
emerging. Getting SMEs directly involved in producing learning is a quicker,
more cost effective way to future-proof your organization. Find out more
about how you can do this with Collaborative Content Creation.
* Maintaining quality: Under pressure with a growing backlog of training
requests, L&D teams can cut corners to meet demand. Stakeholders may even
take things into their own hands. This decreases the effectiveness of the
learning. It doesn’t solve the skills shortage issue any quicker and may even
make the problem worse.
* Creating impact: Whether you’re struggling to respond at speed and scale or
maintain quality, ultimately, it means employees aren’t getting the learning
they need to succeed in their roles. This widens the existing skill gap and
can have an even bigger business impact when workforce reductions are
occurring.
4 WAYS L&D CAN THRIVE DURING A RECESSION (AND CUT COSTS)
To respond to changing needs at speed and scale and, of course, with impact, L&D
teams need to be flexible and ready to adapt their approach.
Here are 4 key things you can do now to make sure you’re ready.
1. REDUCE DEPENDENCY ON EXTERNAL SUPPLIERS
Bringing more learning production inhouse can considerably reduce your budget.
It means less money is spent with expensive external agencies, freelancers and
contractors.
While agency-created content can be high quality, it’s often a long and
expensive process to create and maintain. Off-the-shelf content can be quick to
deploy, but usually lacks relevance and can offer very little return on
investment. With the right processes and technology in place, inhouse elearning
production puts you in control and enables you to work at speed and scale to
produce impactful learning experiences.
2. MAXIMIZE THE POWER OF YOUR PEOPLE
Empowering every employee to produce effective learning content increases your
output without increasing your costs. Capturing internal expertise and
experience also has longer term benefits by ensuring critical business knowledge
and experience is retained even when people leave.
Of course, Subject Matter Experts (SMEs) are content experts not learning
designers. They’re also used to sharing their expertise face-to-face, rather
than digitally. So, you need tools and techniques to support them to turn their
expertise into effective learning.
Find out how you can do this with our guide to setting SMEs up for success and
blogs on how to involve SMEs and transform the way you work together.
3. MINIMIZE INEFFICIENCIES
Working at an enterprise-level of scale requires effective collaborative
workflows. Whether you’re gathering content or reviewing a course, collaboration
will enable you to speed up and reduce inefficiencies at each stage of the
process.
Before you open up elearning production to people across your organization, you
need to establish efficient processes and effective technologies. Doing this
from the start will make things run more smoothly. It allows your new elearning
creators to focus on the knowledge they want to share and avoid technical errors
and visual inconsistencies.
As the L&D experts, you and your team can have oversight, maintain control and
reduce risk. Want to explore more ways to efficiently meet demand. Read our blog
on how to scale up production.
4. LOCATE AND FILL SKILL GAPS
Following a year when people quit their jobs at historic rates, we’re entering
another period of workforce reductions. Critical business knowledge could be
lost overnight. The skill gaps that already exist could get a lot worse, and new
ones will appear.
This means your organization’s backlog of learning is about to increase. If
you’re not ready to adapt, these learning needs will not be met and serious
business and compliance risk is introduced.
You need to take control of the backlog of learning content. By empowering any
employee to create learning, you and your team are freed up to take on the role
of strategic oversight. That means building up a roadmap of future learning and
performance needs and ensuring the content that’s produced is impactful,
relevant, and timely. This will mitigate the risk of knowledge loss and skills
gaps appearing during periods of change.
IN SUMMARY
Faced with an impending economic downturn, businesses are rethinking their
strategies, cutting budgets and decreasing headcount. Demand for impactful
digital learning to support these changes is at an all-time high. So, L&D teams
are being asked to do more with less.
If you’re going to ensure that your organization has what it needs to succeed
under these new economic pressures, you need to get prepared. Make sure you’re
ready with processes and technologies that enable you to:
* Scale learning production
* Harness the expertise of internal experts
* Maintain the quality of learning
* Increase learning impact
HEAR WHAT THE EXPERTS THINK
Interested to hear from top learning experts, analysts and organizations on what
they think you need to focus on during the recession?
Join our upcoming live panel discussion to discover how you and your team can
thrive by implementing a collaborative L&D model to future-proofing your digital
learning production.
STEVE PENFOLD
Elucidat CEO & Co-founder Steve comes from a family of teachers and has a
history of running successful software companies. It is of no surprise that he
ended up co-founding and investing in Elucidat! His passion is driving value for
Elucidat’s customers and solving the (very real) challenges experienced by
corporate Learning and Development teams. Prior to Elucidat, he co-founded a
web-based software company named PROJECTminder, which helped architects save
time and money when managing a high volume of projects – it was well received
and ultimately led to an acquisition by the IRIS Group. His specialty lies in
helping digital businesses operate more efficiently, drive sales & increase
profits.
Read more articles by Steve Penfold
Continuous learning strategies that work at scale The hidden costs of authoring
tools (and how to spend more wisely)
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