If analysts are correct, the recent economic downturn may be slowing and even changing direction. The recession's effect on operations, however, has barely begun to manifest. Training budgets are typically the hardest hit when economic times are tough or corporate purse strings are pulled more tightly. The effects of a reduced training budget might not be evident immediately but over time will show up as cracks in product and service quality.

“The result of poor training management is an interesting cause and effect relationship,” says Mark Jaine, president and CEO of Intelex Technologies Inc., a Toronto-based company that provides training and environment, health, safety and quality (EHSQ) management software solutions. “The ‘cause’ is the decision to slash training budgets and neglect training programs. The ‘effect’ is poorer employee performance, compromised product and service quality, and diminished employee retention. However, sometimes these effects aren’t realized until one, three, or even five years later, depending on the company's size and the extent of the neglect.”

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