Despite the economic downturn, small businesses are still investing in staff training. Research by the The Chartered Institute of Personnel and Development (CIPD) has revealed that companies that continue to invest in training when conditions are difficult are more likely to survive than those that don't and staff are more likely to remain at a firm that invests in their development.

Increasing numbers of small firms are becoming aware of the business benefits that staff training can bring. CIPD annually surveys specialists in Learning and Development (L&D) across the country. About two fifths of our survey respondents are from small and medium-sized businesses. Our latest L&D survey indicates that SMEs and large organisations alike rate L&D relatively highly. What are the reasons for this?

1) In the last recession those companies which invested in developing their employees were 2.5 times more likely to survive than those which did not

2) Businesses that invested in people were more likely to enhance the skills and capabilities they needed to compete

3) Organisations that maintained staff training programmes were more likely to retain employees in good times through demonstrating commitment to their training and development in tough times

Learning and development: the key talent driver
Learning and development is about substantially improving the talent in a businesses and ensuring that a firm captures and grows the potential of its staff. That's why the CIPD have redefined the Learning and Development area in our profession map into Learning and Talent development (L&TD). It's hardly surprising that SMEs see L&TD differently as they don't normally have large training functions and are often very focused on delivering their product or service. For small companies on a knife-edge between competitiveness and failure, where does L&TD come in?
In the last recession those companies which invested in developing their employees were 2.5 times more likely to survive than those which did not

L&TD is the combination of innovation and enterprise and the belief that trained and developed people deliver more for a business. It's a truism worth repeating that, in an increasingly global and competitive economy, we only need to remain static to go backwards. Talent is the differentiator of success and learning and development, which can harness the capability of people, is a key ingredient in competitiveness.

Training on a budget
Small businesses often have limited resources for Learning and Talent development, but the majority do have training budgets. The CIPD's latest survey revealed that 46% of companies reported that their L&TD budgets remained static, while approximately 15% reported an increase. Only a third reported decreased L&TD spending. Yet effective learning interventions need not cost a fortune. Learning on the job is by far the most effective method, and there's also no need to hire specialist trainers: get an internal specialist to lead a session as facilitator, although it may be more cost effective to have a specialist trainer help facilitate some sessions.

A valuable insight about learning gleaned from neuroscience is that we learn much better when we learn to chunk information. Bite sized ‘micro-learning', where we learn little and often, is the future for many fast moving industries. It's one of the key challenges for our skills base. And it's not just small companies that are looking at these issues. Now even large companies like BT and Nike are using real-time learning through social media to encourage group and community learning. Another key to learning on a budget is to evaluate properly and ensure that the learning is actually making a difference.

M&L training
According to CIPD's L&TD survey, 73% of small businesses are focusing on leadership and management skills as the key issue in terms of skills and learning. This is hardly surprising, as the Leitch review showed that only 40% of UK managers had a qualification at or above Level 2. This is not to suggest that qualifications are an absolute essential and to decry the many self-taught managers and business leaders. However, in an increasingly complex business environment, and especially in small businesses, the ability to manage is usually correlated with a higher level of education.

Conclusion
The need for learning and development in small businesses has never been greater and research indicates a great appetite for learning and development in the sector. The secret to impactful L&TD for the sector is to understand firstly the six Cs in terms of how we design and deliver training appropriate to small businesses. It is also necessary to understand that L&TD is about talent and capability, not courses and classrooms. Small and medium-sized companies can deliver a compelling future through trained and developed employees and become the large businesses of the future.

For more information please visit www.cipd.co.uk