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Firms looking to reduce their education budgets should re-evaluate as training staff will help organisations overcome challenging economic conditions, says expert.
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Businesses must upskill to overcome economic slowdown
30 May 2023
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10 minute read
Businesses must prioritise training and upskilling employees, particularly in preparation for a global economic downturn, according to corporate training firm GRIST.
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Managing director of GRIST an Australian corporate coaching and training business Peter Grist said firms must rely on their people to help them through tough economic times.
“Many of us have been around long enough to remember the GFC. We know what it takes to get through a downturn and the answer is - your people,” said Mr Grist.
“You have to have the right people with the right attitude and skill set to position your business to weather the storm. The skills required in a bull market are different to those in a bear market. These are not skills that come naturally, they need to be taught in a way that corresponds and aligns with the operations of the business.”
“My strong advice to businesses is - get ready. Galvanise your people and your business to survive and thrive over the next few years.”
He said Australian businesses were not only facing a period of uncertainty but also of change which meant firms and their managers and leaders needed to be able to develop the capabilities to help steer their organisations forward.
“With the Australian economy cooling, businesses need to act quickly to prepare and galvanise their operations,” said Mr Grist.
“Skill up and prepare your people for the road ahead; help them to become invincible.”
Mr Grist said governments needed to ensure any tax breaks or incentives they provide for businesses to invest in training were used effectively in areas that would help firms moving forward.
“Tax breaks always encourage businesses to spend but it can drive unproductive spending on training interventions that often lead to little change in capability on the job,” he said.
“My first thoughts is that governments should focus on increasing awareness of the problem and the long term implications for organisations, the economy and the country.”
“If government is going to incentivise training through tax breaks then it needs to ensure the tax that is forgone is spent effectively. It could be that to be eligible for the tax break organisations have to demonstrate not just that they undertook training but that it was training aimed at specific future skills and that it was delivered in the context of a solid development and application plan that demonstrated a measurable capability uplift.”
Mr Grist said the four key skills that businesses and their employees needed to survive an economic downturn were:
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