The Importance of Knowledge Development in a Recession
Excerpt: Author: Mary Clarke Publisher: KnowledgeBoard Date: 06-May-09
In today’s world where knowledge is power, it should come as no surprise that the most valuable asset for any business is the knowledge of its employees. And within our current knowledge-based economy, competent and confident employees are the foundation for a successful business, according to Mary Clarke, CEO of Cognisco.
Focusing on the continual development of employee knowledge is an important step for businesses to take if they hope to stay competitive in the ever-changing global business environment. This becomes even more important during unstable economic times when businesses are looking to gain ground wherever they can.
Despite the recent trends pushing us toward an economy increasingly dominated by knowledge-based activities, many businesses are not currently making the necessary investment in their employees. A new study by Paul Mizen, economics professor at the University of Nottingham and fellow at the Centre for Growth and Business Cycle Research at the University of Manchester, found that in the midst of the current economic downturn, many of the world’s top economies, like the UK and US; have been decreasing their focus and investment in knowledge development. In fact, in 2008, more companies actually reported a decline rather than an increase in staff development in these industrialized countries.
"Employee misunderstanding, resulting from a lack of training and knowledge assessments can be very costly for businesses; not only in terms of time and money, but also customer relations and business reputation."
In the developing markets of Asia, however, research has shown that fewer firms are planning to decrease their training budgets and staff investments, and are coping with the recession by reducing budgets elsewhere. These results suggest that by keeping a stronger focus on employee knowledge development, emerging market countries are putting themselves in a viable position to surpass industrialized countries when the economic upturn comes. Companies everywhere should take note of this, whether they are part of a well-established industrialized nation or are new to the global market, and invest in their employees now to better prepare themselves for the future.
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Excerpt: Author: Mary Clarke Publisher: KnowledgeBoard Date: 06-May-09
In today’s world where knowledge is power, it should come as no surprise that the most valuable asset for any business is the knowledge of its employees. And within our current knowledge-based economy, competent and confident employees are the foundation for a successful business, according to Mary Clarke, CEO of Cognisco. Focusing on the continual development of employee knowledge is an important step for businesses to take if they hope to stay competitive in the ever-changing global business environment. This becomes even more important during unstable economic times when businesses are looking to gain ground wherever they can.
Despite the recent trends pushing us toward an economy increasingly dominated by knowledge-based activities, many businesses are not currently making the necessary investment in their employees. A new study by Paul Mizen, economics professor at the University of Nottingham and fellow at the Centre for Growth and Business Cycle Research at the University of Manchester, found that in the midst of the current economic downturn, many of the world’s top economies, like the UK and US; have been decreasing their focus and investment in knowledge development. In fact, in 2008, more companies actually reported a decline rather than an increase in staff development in these industrialized countries.
"Employee misunderstanding, resulting from a lack of training and knowledge assessments can be very costly for businesses; not only in terms of time and money, but also customer relations and business reputation."
In the developing markets of Asia, however, research has shown that fewer firms are planning to decrease their training budgets and staff investments, and are coping with the recession by reducing budgets elsewhere. These results suggest that by keeping a stronger focus on employee knowledge development, emerging market countries are putting themselves in a viable position to surpass industrialized countries when the economic upturn comes. Companies everywhere should take note of this, whether they are part of a well-established industrialized nation or are new to the global market, and invest in their employees now to better prepare themselves for the future.
back to Enlightening Co-op Info
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