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                China Training Industry Report

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Executive Summary
Analysis of Demand for Training
Buyers¡¯ perception, opinion, evaluation on training in China
Training Policy in Companies in 2007
Purchasing Training
Plans for 2008
Senior and middle managerial training in China
Decision Making Process and Criteria
Analysis of Supply of Training
Description of Training Services
Characteristics of Training Providers
Training providers¡¯ perception and understanding of training buyers
Profitability and Market Strategy
Marketing Training
Managerial Training
Conclusions
Research Description
List of Figures
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    ¡ª¡ª Training Services in China, 2008 Directory           

1. Analysis of Demand for Training


1.1. Buyers¡¯ perception /opinion/evaluation on training in China

Human Resource managers in China have professional expectations from training providers. They clearly understand their role in organizations and usually have a clear understanding of the direction their company is heading. To meet the talent demand of their growing organizations, HR managers strive to partner with training providers to help high potentials and other employees with their professional development. HR managers fundamentally understand how selected training and systematic personal and professional development plans can serve as a useful tool toward recruitment, retention and at the same time offer employees the opportunity to further develop their skills and competencies

.HR professionals clearly stated within their response to the Training Directory survey that one of the biggest challenges they meet within their work is to find suitable training providers. HR professionals across all industries in China expressed the same constraint. The authors are confident that this report, as well as the contents of this ¡®Directory¡¯, will be of some assistance in minimizing procurement challenges.

Satisfaction with training providers

In 2007, training buyers were moderately satisfied with training providers. 94% of
respondents were satisfied to some extent. Only 3% of the respondents stated that training
providers were able to suit their needs. Training buyers indicated training suppliers were
¡®almost¡¯ (49%) or ¡®somewhat¡¯ (45%) able to suit their needs. On the positive side, only 3%
of the respondents stated that they were dissatisfied.

Figure 1: Are current training providers able to suit the needs of your company?

The above results suggest two facts:

  • For training providers, there is still a lot of room for improvement
  • Training buyers are homogeneous, they have similar feelings toward training providers ¨C 94% of the respondents chose similar answers, reflecting moderate satisfaction with the training received

 

Reasons for dissatisfaction with training

There is little differentiation as to why training buyers were not satisfied with training providers. In most cases, the perception was that the training was not effective. The training did not serve the organization¡¯s main purpose. 47% cited that training method was seen not effective or training providers did not meet up to delivering promised tailored services. Training buyers also complained about unqualified trainers and outdated training content. For specific results please refer to Figure 2.

Figure 2: If you are not satisfied with the training, it is because:

As per pricing considerations, only 20% of the respondents perceive current price as too expensive. It was the ¡®price to quality¡¯ ratio that training buyers are most concerned about. Training buyers are willing to purchase training programs at current pricing structures, but they expect to get what they are paying for. Buyers voiced a concern that some training providers do not keep their promises. One can conclude that training buyers are less focused on cost where expected outputs are achieved. Buyers care about training efficiency more than training cost.

Pricing is not a key consideration in making training procurement decisions. It is the time factor that trainees spend on training. The cost of employees away from the focus of their work related responsibilities is of greater concern. When ineffective or inappropriate training was selected, the company suffers twice. The employees are exasperated from investing their time with limited professional development gain. The company not only carries the burden of the training expense and also doubly suffers a productivity loss during the wasted time spent on training. In place of an expected ROI, enhanced inefficiency and employee de-motivation may become an end product of the training delivery and/or selection weakness.


Weakest areas of training in China

The area of training in corporate China today that poses the biggest challenge is that of developing the soft-skill functionality of relatively new entry high potentials employees. This does not imply that high potentials are lacking in their educational background. On the contrary, they usually possess degrees and diplomas from renowned institutions; but there is a general consensus these graduates lack business communication skills that would have practical application in the workplace. Tactical competencies have not been developed during their post-secondary studies. Outside the box thinking, creativity, leadership, the art of persuasion, empowerment, delegation and workplace engagement are but a few of the soft skills identified as valued and missing in most new entry employees

The voice of human resource managers and other training professionals expressed a shortfall in the area of soft skill development and training. Leadership and Strategic Management training is listed as the most deficient area of training needed in China. This notion was stated by 59% of the training buyers who participated in the research survey. Almost one out of every two HR professionals complained that Middle Managerial training is weak. Every two out of five respondents thought improvement is needed in Coaching. Every third HR professional would like to see enhanced training provided in their respective fields for themselves. One third of the respondents indicated Interpersonal Skills training is poor. Conversely, training buyers perceive hard skill training offerings as having a strong demand in China. For specific results of the top seven weak training areas in China, please refer to Figure 3 below.

Figure 3: What training areas do you think are the weakest in China at present?


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