More Organizations Viewing Training As Key Component To Long Term Success

Economic growth, new governmental regulations, and the challenges of an aging workforce have made learning and development a strategic business function. More organizations are viewing training as a key component to their long term success, and are increasing L&D funding to invest in the future. A new report by Training magazine in 2006 states that management and supervisory training receives a great deal of funding due, in part, to the aging of the workforce. Census data shows that over the next 10 years
there will be a marked increase in retirements, causing a vacuum in the ranks of middle management. Smart companies are acting now to groom current and prospective managers to fill the void.

With 77 million baby boomers expected to start retiring (or at least considering it), many people in management and leadership positions may start phasing out of the work force. Companies who have enough foresight to think long term about how their businesses will be affected are now preparing replacements with the management and leadership skills they’ll need.

According to the training industry report for 2006, the biggest shortages will occur in sales people and engineers. “Program priorities indicate heavy focus in these two areas. The third, and continuously important area of focus, is training for mid-managers and executives. As the workforce ages, all organizations realize they must invest in learning and development programs to rebuild and fuel their leadership pipelines.”

Waiting until a management position comes available to start thinking of management and leadership skills training can cost a company in more ways than the cost of management skills training. Grooming the up-and-comers beforehand can help insure the transition into the management position will be a smoother one. The new manager is better prepared to lead the team, and they are better prepared to receive the new manager.

Which program areas will receive the most funding resources in the coming year?

Skills to be considered when choosing a management training program should include communications, strategic planning/thinking, problem solving and motivation.