Question

Explain how substantial hiring and training costs create a buffer that may insulate high-skilled workers from layoffs during an economic downturn.

Answer 1

Training is an essential part of the management of a firm as it is the process that makes an employee fit himself to the needs of the firm. The firm normally spend a lot on training and hiring as it is the basic initial process by which a company would get to know about the candidate and find whether he/she wouls suite to the requirements of the firm. It is also an essential component for the employee as proper training would give them confidence to work in a firm so as to see off any unforeseen situations that may happen within the working atmosphere and would be beneficial to both the firm and the employee. The spread of covid pandemic was such an unforeseen situation and the following are how the proper training would benefit the employee in such a situation

• Proper training would ensure that the employee is fit to act in unforeseen situations and knows how to tide over the situation.
• The training would ensure that the worker is efficient and thus the production of the firm would remain efficient which makes sure that the company can work with the same strength in an efficient way.
• The efficient employee is beneficial for the firm as the production costs of the firm is unaffected during the time.
• The productiveness of the employee remains high so that the cost for maintaining an employee is less than the opportunity cost that is obtained by the firm.

All the above factors would make sure that the profit of the firm and the sustainability is not affected as a result of the better training that was provided in the initial stages. Thus, this would also prevent from the employee being put off during pandemic stages like these.