What Is the Cost of Cutting Learning Budgets?

Informal Learning Strategies
Informal learning rarely appears on the budget sheet, but remains strong in most organizations. It occurs as co-workers discuss new procedures or processes, and it has the capability of crippling an organization if not recognized and managed appropriately. For training departments with constrained budgets, it represents an area of leverage. While some executives might see informal discussions as wasted productivity, employees can be encouraged to use this information as a way to improve performance.

Examples include informal peer-to-peer mentoring programs and on-the-job coaches. Increased focus and attention is being given to informal learning in the workplace, but there is often difficulty in tying it to the bottom line. Again, the debate must be focused on what the result would be if it were eliminated. Smart training managers will find ways to use this as an alternative to formal training, including using new social media methods such as Twitter and using it to present training virally. In other words, send the trainers out with a training objective, but use informal discussions with employees to disseminate it. It won’t work for everything, but it can work for more than you might think.

Creating Agreements With Employees
The most difficult message to convey to employees when cutting back or eliminating the learning budget is that they are still important and critical to the business. It is a message often delivered to dead ears and often rings hollow even for those saying it. A way to circumvent this judgment is to form agreements with employees concerning their learning. Learning agreements are most effective when created in partnership with the individual’s manager and when they are genuine and focused on the individual’s needs and abilities.