1.6. Decision Making Process and Criteria

First contact with training providers

To choose a suitable training provider, training buyers usually depend on recommendations and referrals. The Training Services in China Directory is also a proven and valuable source for procurement when buyers are trying to identify and contact training providers. An independent study stated 19% of all training procurement for foreign invested enterprises is sourced through the Training Services in China Directory. HR, training conferences and other learning related events are also cited as initial sources of identifying suppliers. Internet is increasing in popularity, while public conferences are becoming less popular. Please refer to Figure 16 below for detailed results.

Some of the interviewed training buyers are using tendering process in the selection of their training providers. These training buyers would search for suitable training providers and invite them to bid for the training needed. Winners of such bids are usually those training providers who can successfully explain how they will design tailored training programs to fulfill the specific training needs and expectations of the training buyer in question.

Types of training providers used

The vast majority of training buyers employ consulting firms to provide training, and use Independent Training Consultants or Contractors as a less frequent solution. A significant number of training buyers have internal training sources (42%). Consulting companies usually favor providing total solutions/systems in place of limiting their service exclusively to training. In 2007, almost every third training buyer received training from Product Suppliers.

Criteria for choosing a training provider

Training buyers wish to convey to providers a clear message: “We want better quality. Price matters less.”

The most important criteria applied by training buyers in forming a procurement decision is the Quality of training, with 89% of the respondents sharing this idea and 9% stating that it is very important. The second important criteria was Customized training programs, as half of the respondents selected this factor as most important and 39% declared it is very important. Reputation of the training provider and Training Methods were the third and the fourth important factors respectively when choosing a training provider.

For training buyers the above four criteria were of critical importance. The balance of priorities included: customer loyalty, price and some form of certification offered, were regarded far less important. For detailed results please refer to Figure 18 below.

Training buyers prefer training providers to concentrate more on the ROI merits and quality of their training provisions and less on exaggerated point of sale representations. The market is very big in China and there is a recognized demand for various kinds of training initiatives. Training providers should not be satisfied with one-time business transactions, but try to improve their training quality. This will enhance repeat business opportunities. It is ironic but very common that providers of customer-service training programs are often deemed as having poor customer service habits.

Most buyers indicated that the training providers who are predominantly run as Foreign Invested Enterprises (FIE’s) do not nececcerrily have advantages over local providers. The only thing that seems to matter is whether the provider has the appropriate training product or service that meets the buyers’ needs and assists in overcoming their particular business challenge. Many FIE’s are perceived to have the required resources to introduce good courses from their overseas headquarters, but they may not necessarily fit the buyers’ in-China needs.

When asked who the decision maker is when choosing a training provider, the respondents stated that it is not a single corporate title. The majority selected Training Manager/Director and HR Manager. One fourth stated, the training procurement decision is often held by a senior level executive. In this situation, where a Training Manager, Director or HR Manager pre-selects the provider, the authorization and signature of a senior direct report is needed (sometimes even one’s CEO) for final approval. It is not apparent that Trainees have much influence on the choice of their training provider.

Preferred methods of training

Training buyers are still in favor of traditional training methods. Live Instructor-led Classrooms are preferred by 85% of the respondents. There is a huge variance between the favored selections. A far second training method ranking is Conference/Workshop Sessions (35%) followed by Action Learning (29%). All technology based training methods were clearly least popular.

Although buyers indicated ‘Conference/Workshop Sessions’ as their second choice, when it came to Middle Managerial training they prefer the ‘Action Learning’ process. This result demonstrates that HR managers have precise expectations toward training for the
various factions of their employees. They understand the specialized roles within their organization and a clear definition of the human resource challenges which have to be met for each specific position or category of positions. HR managers in China have already
become partners with employees at a much more sophisticated organizational level and are proactively addressing employee training needs from a career development vs. one-off, quick fix perspective.

A majority of companies have indicated a preference for training to be delivered bilingually – both in English and Chinese. Some companies would like the training to be delivered either exclusively in Chinese or in English.

One of the biggest challenges HR professionals face in their portfolio of responsibilities is their level of confidence in identifying appropriate and competent training providers who can meet their desired training output expectations. As the quality of training is valued most and the necessity to leverage their colleagues time and effort most effectively, there is a constant pursuit for suppliers who can live up to a company’s needs and expectations. Hence, the rationale behind the importance of referrals and recommendations to which HR managers heavily rely upon.

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