In the current climate, many employers, including federal contractors, are having to cut back and do more with less. This places an additional burden on supervisors and managers. Yet, when budgets are tight, companies often apply huge cuts to their training budget.
Food For Thought
In February 2023, CFO.com published an article titled Why a Looming Recession Is No Reason to Cut Training Budgets. In this article, the question posed was, “The last time the market was down, and their company adjusted by reducing expenses on training, how long did it take to recover from that when the market was back up and the economy was all systems go? What competitive edge or position was briefly surrendered, and how long did it take to get it back?”
The Cost of Training vs. The Cost of Turnover and The Costs of a Lawsuit
Trainingmag.com reported that in 2021, companies spent an average of $1,071 per employee, and in 2024, the amount companies invested fell to $771.
In 2022, GoodHire.com surveyed 3,000 full-time American workers from ten of the most popular job sectors. 82% said they would potentially quit their job because of a bad manager. In a March 2025 article, OTEC stated, “A lack of investment leads to disengagement, higher turnover, and skyrocketing hiring costs. According to Gallup, replacing an employee costs at least 1.5 to 2 times their annual salary.”
In a March 2025 article, insurancebusinessmag.com stated that the U.S. Equal Employment Opportunity Commission (EEOC) has reported a sharp rise in workplace discrimination charges, with 88,531 new cases filed in FY 2024, a more than 9% increase from 2023. Also outlined were common missteps, which include failure to align documentation with termination decisions, and failure to follow employment laws, such as Reasonable Accommodation and the Family Medical Leave Act (FMLA). According to employment attorney Jon Hyman in a Workforce.com article, employers that have a case run its course through to a jury verdict should expect to spend up to $250,000 defending themselves. Even the conservative estimate of working a case through discovery and summary judgment could lead to spending a minimum of $75,000. A search of several law firm sites revealed similar estimates.
How to Get the Most Bang for Your Training Buck In a November 2024 article published on LinkedIn, Michael Christian, an Organizational Development Professional, listed 8 Key HR Competencies for Direct Supervisors, stating that “Mastering these competencies enables supervisors to create an environment where employees feel valued, engaged, and motivated.”
- Recruitment and Onboarding
- Employee Engagement and Retention
- Performance Management and Feedback
- Adaptive Leadership and Multi-Generational Management
- Compliance and Labor Law Awareness
- Conflict Resolution and Employee Relations
- Compensation, Benefits, and Well-Being
- Discipline and Exit Management
As an HR professional, I agree with this list. Supervisors and Hiring Officials have asked illegal interview questions concerning national origin, religion, marital status, number of children, and if the applicant is pregnant. Supervisors also need more training in ensuring that new employees are acclimated to the culture of the company, in handling difficult conversations, managing attendance issues, dealing with FMLA and reasonable accommodation requests, managing performance, taking corrective actions, handling separations, and of course, at what point they need to consult HR for guidance before proceeding.
Investing in your supervisors will lead to them investing in their employees, which is a win-win for your organization. The consequences of not training supervisors are many and can include low morale leading to low productivity, high turnover rates (both employees and supervisors), and costly lawsuits. A popular quote from Richard Branson is: “Train people well enough so they can leave but treat them well enough so they don’t want to.”
Here at Rocket City HR Consulting, we can assist you in conducting an HR audit to identify risks and/or conduct a training needs assessment to determine your training priorities. We also have skilled HR professionals who can assist you in the development of a training plan and who can conduct the training for you, if desired. Studies have shown that using trainers who have specialized knowledge and experience, and who are not tied to the internal dynamics or politics of the organization, can lead to enhanced credibility and improved learning outcomes.
By Karen Burton, SHRM-SCP, SPHR
