It seems counterintuitive that training is often the first thing to go when companies need to trim expenses. It is no secret that a well-trained team is a crucial building block, yet 57% of human resources professionals say that it is among the first budget cuts.
With a potential downturn looming, that’s a disconcerting thought in multifamily. If anything, a recession represents the time when organizations should increase training, marketing and employee retention efforts, according to panelists at the 2023 Apartmentalize session, “Recession Proof Your Company with Marketing and Learning.”
The overriding premise is that high-performing employees are even more crucial to maintain in lean times, and a discontinuation of learning opportunities could push them away.
“The cuts often come from the top, and I think there’s a misconception of what’s happening at the bottom of the company,” says Krista Washbourne, VP of Learning and Development for Bainbridge. “And if people making the decisions are disconnected, it can be a big problem. Almost every piece of research I’ve ever read indicates that learning and growth opportunities—and having the ability to receive promotions—are among the top three needs of every employee.”
To that end, a study of 2,500 businesses by the Association of Talent Development shows that companies with well-developed training programs achieve 24% higher profit margins and experience 218% higher revenue per employee. Inadequate training also helps answer why employees leave. The panel noted that associates are more willing to jump into the unknown of a new job than settle for “fine.”
“You have to nurture talent to survive,” says Jennifer Staciokas, Executive Marketing Director of Property Management for Western Wealth Capital. “And it’s important to lock down your really good talent, because the talent pool is very slim right now. My team tells me that when a position becomes open, especially in maintenance, we’re lucky to get even one or two candidates within the first few days the ad is listed.”
Staciokas noted that team member surveys can serve as a critical component to help build robust training procedures that fit the company. Training that is customized rather than cookie-cutter will yield healthier results.
Stephanie Puryear Helling, Coach, Consultant, Speaker and Trainer of SPH Services, supports the idea of team member surveys—albeit with an important distinction. She says companies must take action with the results, because “doing nothing with the surveys is worse than not doing them at all.”
Cutting marketing initiatives is another common knee-jerk reaction during a downturn, but as with training, it’s not necessarily a smart move. A McGraw Hill study found that companies that maintained or increased their marketing efforts during a downturn experienced an average sales growth of 256% afterward. Maintaining marketing also can separate companies from their peers.
“It puts businesses in a unique position to get ahead, especially when everyone is jumping out of marketing,” says Dee Wilson, Founder of Deep Marketing. “You tend to get more for less, because if you’re ahead of the game, everybody is going to be playing catchup with you later.”
Paul Willis is a Content Director for LinnellTaylor Marketing.