The so-called ‘downturn dilemma’ is actually a perennial HR headache. How do you boost engagement and
performance levels and get your organization competition fit, when your recruitment, and learning and
development (L&D) budgets are constantly being squeezed?

There’s additional pressure now admittedly. Fast-changing policies from the new coalition government, and
the likelihood of higher costs, further spending reductions and job cuts to come, not to mention the volatile
economic environment, mean UK businesses really are going to have to achieve more with less in the
coming year.  Recent research by training company Thales found that while 79% of businesses sensibly
stated employee engagement is a top priority at board level to get them through the on-going recession,
44% also said cost-cutting would take precedence over investment in L&D. Not surprisingly Thales found that
companies continuing to invest in their people are recovering faster than those who’ve slashed their budgets
to nothing. So how do you fill the gap between cuts and improved performance?

My immediate advice is to budget smarter, and promote your existing L&D provisions with more ingenuity
and gusto. My experience when reviewing employee opinions of their employers is that many staff members
don’t understand the full extent of the rewards, benefits and L&D provisions on offer to them anyway. Clear,
timely communication of your reward, wellbeing and L&D policies can reassure existing employees that
there are genuine opportunities for them, so long as they deliver performance now.

If you have honed down the workforce you’re likely to have retained a core of your best talent. That’s a
great place to start. Prioritize your spending to leverage the skills of these promising people.  Communicate
creatively to keep people motivated and on-message. Telling your teams they’re the best, inspiring them
with good news stories, and empowering them to drive the company forward needn’t cost very much. Also it
pays to clearly signpost the career opportunities that will come to those who stay loyal to you.

Ask yourselves an important question: While the board is pre-occupied with efficiency and performance
management, who is focusing on keeping the company vision, values and culture on track? Often the simple
act of communicating regularly and clearly with employees can keep people engaged and motivated, even in
the toughest of times.