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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           

2. Analysis of Supply of Training


2.3. Training providers¡¯ perception and understanding of training buyers

When asked to state the issues that are considered important by their clients, the majority of training providers stated Trainers Qualifications (76%) and Training Effectiveness (74%). 69% declared that Training Content is important for their customers. Effective Training Methods were stated by 46% of the respondents. Tailored Services was selected by 40%, which is closely followed by Price (39%). Recognized Certificate was chosen by 18% of the providers. For detailed information please refer to Figure 32 below.

Figure 32: Which of the following issues do your clients consider important?

Highlights from interviews tell the reader that training providers usually have challenges to ensure the return on investment (ROI) on training. To bridge this challenge, a training provider needs to do due diligence to investigate the training needed and ensure the most appropriate intervention is being selected. The training should always be aligned with the objectives of the company. Training should not be limited to training itself, but a systematic (holistic) approach consisting of the following three phases: pre-training consulting, training and post-training follow-up.

During the first phase, the training provider should work together with the customer to fully identify the company¡¯s training needs; the training should be designed to be in-line with company¡¯s competency model. The training provider should work in conjunction with and secure endorsement from the company¡¯s appropriate and applicable senior management to play a role in the design of the learning criteria. Perhaps they could share in identifying talent; find out who are the high potentials with whom the company wants to develop. It is necessary to assess the current talent gap.

The next phase is to conduct the training. Training methodologies vary according to the different training programs. As an example, a most successful training method for a small group of managers is a Communication Panel, during which there is a channel for managers to express their concerns and minds about given tasks. This group learning experience would be a crucial part for ¡®Business Driven Action Learning¡¯.

 

Training providers suggested an internal customer approach to increase ROI in training. Since HR managers often have to justify their decisions as to why and the merits of the training provider selected, some training providers suggested that HR managers not perceive themselves as HR managers but as internal sales. According to this approach, the HR manager should clearly understand the expectations of their direct supervisors and even more importantly how each and every training initiative ties into the key objectives of the company. As a training program is not just a training but a solution to a given business challenge, by understanding it, they can prove to their direct reports that the training is effective. HR managers are well advised to re-define their role in the organization. They need to find answers to the following questions:

  • What are my supervisor¡¯s expectations from me?
  • What are the challenges our managers face at work?
  • What are the challenges they are going to encounter in close, mid-term and long-term
    perspective?
  • Does the training tie in with the crucial objectives of our organization?

A lot of training providers in China share the view that MNC¡¯s in China usually apply standard training programs adapted straight from their overseas headquarters. Local companies on the other hand, usually have limited awareness regarding the value of training as well as their employees¡¯ training needs. Furthermore, HR managers in local companies do not choose training because of training content. It is usually the training title that interests them, the reason being they have heard that their competitor does such training, and they want to follow. This clearly does not hold true for all local companies. Some domestic organizations have now evolved toward executing highly sophisticated and competitive training practices.

Training evaluation by training buyers

The result of training evaluations conducted by training buyers helps training providers to design their courses in a way to meet the customers¡¯ expectations. Training providers stated that their clients evaluate training mainly by measuring trainees¡¯ satisfaction with the training/ instructor (82%). According to the providers, almost every second training buyer measures the impact of training on business results and trainees¡¯ behavior and change in performance, whereas acquisition of skills was measured by 40%. Only 3% of providers stated that their customers do not conduct evaluation of training at all. Please refer to Figure 33 below.

Figure 33: How do your clients evaluate your training?

Most buyers evaluate the providers¡¯ training based on the four levels of Kirkpatrick¡¯s model with a primary emphasis on the first level of trainee satisfaction. Usually, it depends on the line-manager to do the second level and third level evaluation on behavior changes.

 


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