Question

If the region or country where a company is located is experiencing a labor shortage, what should the company's management do?

		Rightsize the staff
		Downsize the staff
		Decrease remedial budgets
		Suspend the recruitment process
		Increase training budgets

Answer 1

The correct answer is "Increase training budgets."

Increasing training budget will help the company to cross train employees the existing employees on different roles and responsibilities. Training helps in enhancing the skills of the employees so that they can give highest level of performance and focus on their career development. It not only enhance the skills of the employees but also benefit the organization by improving the quality of work. So, increasing the training budget and focusing more on training the existing employees will not only enhance their skills but also retain them by providing job satisfaction.