News: Performance Management
Avoid 'significant' business damage with training
21 October 2008
Training is an often overlooked area of human resources (HR) "risk" that, when neglected, can considerably harm an organisation, a new report by Ernst & Young LLP claims.
According to the latest information from the professional services giant, both financial and reputational consequences should concern global executives when it comes to both people management and learning and development programmes.
"HR risks are the challenges that stem from managing your people, programmes and processes, both inside and outside the walls of your business," explained Bill Leisy, a principal with Ernst & Young LLP's performance and reward practice.
By proactively addressing these areas, leaders will drive "sustainable, positive business results", he added, warning that the alternative outcome entails "significant damage".
In its report, entitled 2008 Global HR risk: From the danger zone to the value zone - accelerating business improvement by navigating HR risk, Ernst & Young singles out pay and performance alignment issues and "weaknesses" in the management of vendor relations as further areas ripe for improvement via training.
The results echo the observations of Jo Causon, director of marketing and corporate affairs at the Chartered Management Institute, who suggested earlier this year that "continual investment" in training and development is imperative if firms wish to maintain success.
