The second markets turn south, HR managers at big & medium sized companies start hearing a couple of half-truths that get repeated so often that they begin to make sense.  Â
The first myth is that hiring gets easier when business is slow and companies are having trouble. True, there is less active demand for talent during a recession. If you are looking to fill 10 manufacturing or clerical positions, then you’ll find your recruiting will be cheaper and quicker than in the past. But if you are looking for senior or specialized people then your task isn’t necessarily easier than during boom times. These are the people that owners and top management are struggling to hold on to — even more now than last year when business was better.  Experienced and competent people know that recessions are bad times to switch jobs, since everyone’s budget is severely constrained and bonuses will be weak.  And when you do find a hot candidate at a price you can afford, be prepared for a lot of internal negotiating as the head office tries to shave costs even more.
The next myth is that training budgets should get cut in the first rounds of expense reductions. All your ROI concerns suddenly go out the window at the first sign of slowing business — and that would make sense if we knew that the recession was going to be brief. But we don’t know that.  In fact, things could be slow for a while.  Depending on your requirements, training may be the most cost-effective method of achieving your internal targets. One thing we know — you probably won’t be making many big hires of experienced professionals in the near future, and your cheap(ish) team with less than 5 years of work history is going to need skills.  (If you have a choice between cutting assessments and cutting training, then you are better off killing the appraisals. At least that way no one upstairs will know how weak everyone’s skills are becoming!)
Developing smart, effective training programs can solve a lot of problems for medium sized companies in China.  Many corporate training organizations are feeling the pinch of leaner times, so they are in the mood to make deals. If you include can demonstrate that your training spend is helping to keep a lid on the need for expensive new managers, then you are  boosting your training ROI in China.
