Sample HR Management Paper on Costs


Any tough economic period, always calls for tough choices for most businesses, both in the production and service delivery sector. Businesses are often driven to the edge by the need to cut on staff training and most professional empowerment programs. Despite the awareness of the real value of employee empowerment, many organizations and leaders may opt to scrap out or any training under way during tough economic times. However, a closer analysis of the real value of employee training paints a different picture than leaders may suppose. Although cutting off employee funding may help an organization save on its fortunes particularly in a situation that the economy shows little signs of improvement, the logic behind the strategy may jeopardize an organization in different ways. Regardless of tough economic times, employee empowerment and training should not be scrapped or its resources, reduced as it may pose many challenges and drawbacks for the organization and the leaders.

Continuing with training employees is long-term investment plans for the organization. A trained employee is more industrious and committed and often sticks with the company despite the odds. Employees have the ability to read the signs in changing economic times. In a situation whereby an organization invests in their well-being and potential regardless of the economic pressures, the employees will get more passionate in showing commitment as a sign of giving back to the company during and even after the tough moments elapse. It strengthens employee commitment, support for the organization, and dedication to duties and responsibilities. Additionally, it improves employee job satisfaction, a factor that remains critical in developing teamwork and commitment to employee performance. According to Brunelloa (2009), cutting off training to save on the fortunes of the organization may send wrong signals to the employee as it may show them signs of less commitment by the leaders on their positions and responsibilities within the organization. It has the adverse effect of slowing down employee momentum, commitment, and dedication. Once an employee realizes that they are not a priority within the organization setup, they may develop plans to seek better employment elsewhere, which may lead the organization to lose on very good employees. It has the net effect of demoralizing employees and reducing their performance thus lowering their level of productivity (Kitching et al., 2009).

According to research and studies, the relationship between a company’s commitment to empowering its employees and its real market worth becomes stronger in organizations that center on product innovation for example company’s in the engineering and technology fields, than company’s in different orientations such as service delivery. Training remains a top priority for a business’s production that requires constant change and improvement (Kitching et al., 2009). Employees need regular training and updating on new technology measures and ways of improvement. In such as situation, cutting off funding or reducing the training budget may pose an adverse trend for improvement of products and innovations. Continued training with increased budget allocation portends consistency in product innovation and production. Increased product innovation directly translates to an increased market value of the company and the products produced. It, therefore, indicates that businesses need to continue with training even in the face of cost-cutting financial conditions.

According to research, employee’s value, improving on their skills as it ranked third after job redesign and opportunities for advancement. Lack of improvement of their skills may increase their chances of leaving the company once they get an opportunity anytime shortly. Once employee leaves, a company may be faced with using more resources and finances to get a replacement (Brunelloa 2009). In the end, the company may end up using more in retaining an employee as compared to the cost of training. It’s therefore strong signal to a company and the leaders to focus on the immediate needs of the company than to rush into cost cutting strategies that may pose risks to the future well being of the company both in production and in its public relations exercise.

A company, thus has the opportunity to look into strategies that may signify efficiency than position itself to unknown factors that may compromise its productivity and efficiency in product and service delivery. According to Brunelloa (2009), maintaining training and increasing training budget should be aimed at aligning precise skills, workforce, and competences most significant the company needs and to helping it achieve its goals. It, therefore, means that the company should endeavor to provide the necessary skills to the precise employees at the correct instance to remain significant and within the enterprise’s goals. A company should have the ability to focus ahead of a challenge and look beyond its current circumstances to prevent any negative factor that may affect the company (Hall et al., 2004).

Company’s focused on technological productions cannot afford to ignore employee’s professional growth at the expense of short time cost cutting measures. With well-defined and straightforward skills, technology sector offers a wide array of job opportunities of which training is necessary for an employee and for the good of the company. Training modules and programs configured for effectiveness and specificity remain an asset to the organization and at the same time helps; employees strive for the company’s long-term achievement.




Brunelloa, G. (2009). The effect of economic downturns on apprenticeships and initial workplace training: a review of the evidence. Empirical Research in Vocational Education and Training1(2), 145-171.

Hall, D. J., Tobin, R. W., & Pankey Jr, K. G. (2004). Balancing judicial independence and fiscal accountability in times of economic crisis. Judges J.43, 5.

Kitching, J., Blackburn, R., Smallbone, D., & Dixon, S. (2009). Business strategies and performance during difficult economic conditions.