According to numerous recent reports, the most sought-after commodity among companies worldwide is talent. However a recession brings uncomfortable challenges, most obviously the problem of shrinking budgets, and training can be neglected. So where, in these challenging times, should the focus of training be directed?

In my experience there are three main areas. Firstly, in innovation and creativity where smart business owners and leaders appreciate that dips in the economic cycle need businesses to be flexible and alert to opportunity. Customers under pressure will welcome new product and service ideas that reflect their circumstances. They appreciate suppliers who show adaptability and understanding. Training and development needs to concentrate on these workforce qualities.

Secondly, the value of customer relations is paramount; a customer should never be allowed to feel that they are only as important as how much they spend. In a recession they will fade away, and when it's over they won't come back. Training in customer relationships is more important now than at any other time - and this applies to everyone, from the switchboard to the managing director.

Thirdly, during this period the importance of emotionally intelligent leadership is key. At a time when fear, uncertainty and pessimism are at their most active, leaders who can manage their own emotions, stay positive, anticipate risk and show resolution are absolutely essential.

It is essential in this tough economic condition that the owners of small firms bring forward the best people. This is actually the ideal time to devote training resources to key staff. As research from the Chartered Management Institute has just shown, the younger generation of managers are more driven by the opportunity to build new skills, competencies and cross-functional experiences than by money.

Having worked, as a career adviser and business owner, through the downturns of the last three decades. I have, therefore, observed the behaviours of key personnel through the worst of times, and the winners have this in common: they stay positive, because they know it passes. Instilling positive attitudes in the workforce has to be the training team's overriding objective.

Here are my top tips:

• Support your staff with mentors who can listen to their concerns ‘off-line'. Stress comes from ‘that which lies outside our control'. Unease transmitted to people with no control of the situation creates destructive stress.
• Target your training budget at customer relationship behaviours. Encourage staff to contribute new business ideas.
• Provide development through internal mentoring, using senior staff to mentor more junior. When salaries and promotion may be pegged, the best will stay only if they are receiving development.

What to avoid:

• Staff feeling frozen by fear.
• Rumours of redundancies and financial crises, especially leakages to customers.
• The dark. Openness with the workforce shows that you're all on the same side.

Recession puts a premium on people, therefore it is vital that businesses invest the time and money required into special training programmes.


Jo Ouston is Founding Director of Jo Ouston & Co, leading management development and career planning practice. For more information, visit www.joouston.co.uk