Training and Development in ROI: A Study of Benchmarks

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Training and Development in ROIA Study of
Benchmarks

• CIPD National Training and Development Conference
• Dublin, 24th November 2003
• Thomas N. Garavan, Eamon Collins Scott Brady

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Context of Study

• CIPD Ireland commitment to undertake a bi-annual
  study of training and development practices
• This is the second such study. First study was
  conducted during a period of economic boom.
  Second study conducted during a period of
  slow-down
• Study reports the views of those responsible for
  training and development in organisations
• We broadened our sample in the 2003 study to
  firms with fifty or less employees
• This sector has a lower incidence of training and
  less sophistication in training and development
  practices

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• We are interested in detecting change over time
  and provide a comprehensive picture of current
  best practice
• We surveyed 1000 members of CIPD. We selected 200
  firms with 50 or less employees
• We achieved a good response rate 275 members
  responded to the survey. We conducted 100
  interviews with small firms. The results of our
  study therefore are relatively representative
• We achieved responses from a wide range of firm
  sectors, sizes and ownerships

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Investment in Training and Developmentand
Training Activity Levels

• 78 of larger establishments provided details of
  training and development expenditure. 58 of
  small establishments provided details of training
  expenditure
• Results for larger establishments reveals a
  slight decline since 2001
• 2003 2001
• Large Firms 3.55 3.85
• Small Firms 1.75 -
• US-Owned firms have a higher level of expenditure
  4 of payroll budget
• Ireland still compares less favourably with other
  EU countries

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• Training budget decisions usually made at board
  level, corporate headquarters or by the training
  and development specialist
• Department managers are more likely to make
  decisions in small firms
• Small firms were less likely to provide accurate
  records of the cost items included in the budget
• Establishments are very effective at tracking the
  more tangible costs and are more likely to
  include fixed costs elements
• Establishments are less likely to include
  salaries of in-house trainees, trainers, mentors
  and coaches in the budget
• Training is usually considered a cost-centre for
  accounting purposes. They are increasingly likely
  to consider it as a service department

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• The mean number of days training for all
  categories of employees is
• 2003 2001
• Large Firms 5.35 5.61
• Small Firms 2.15 -
• Major variations in training provision for
  different categories of employee
• Most training is given to senior management,
  supervisory professional and technical staff
• Semi-skilled and unskilled categories are less
  likely to receive training
• Employees in large firms have much more
  opportunities
• A significant number of respondents anticipated
  expenditure on training and development to stay
  the same in the next 12 months

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• Where increases were anticipated, they were most
  likely for senior manager, supervisory and
  professional categories
• They were less likely to increase expenditure for
  less skilled employees
• Respondents from small firms anticipated that
  expenditure would stay the same or decrease. It
  was less likely to increase

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Strategic Dimensionsof Training and Development

• A consistent challenge for training and
  development is to demonstrate its centrality and
  relevance
• Strategic Drivers
• 2001 study revealed that Irish establishments
  were more reactive and operational in the
  approach they adopted to training and
  development
• There is strong focus on immediate concerns for
  large and small firms
• Major concern to make the most effective use of
  human resources
• Retention of staff and the need to address
  statutory/regulatory requirements are important
  concerns

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• More strategic drivers are accorded a lower
  priority. These include
• Facilitating product innovation and development
• Improving the market share of the firm
• Securing and retaining international quality
  standards
• Facilitating the implementation of change
• Small firms are very much preoccupied with the
  short term, the operational, such as developing
  new skills and meeting statutory and regulatory
  requirements
• US-owned establishments are considerably more
  strategic and proactive in managing training and
  development
• Large establishments (1000) are also more likely
  to be strategic in their approach to training

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Role Dimensions

• Limited evidence of change between 2001 and 2003
  for larger establishments
• Identification of training and development needs
  is the most important activity in large
  establishments. It is also important in small
  firms
• Networking activities are very important in both
  types of establishment
• Networking includes formal liaison with
  functional activities, organisational networking
  activities and networking with external agencies
  and professionals
• The delivery of training and development is
  increasingly a less important role dimension in
  larger establishments. It is more important in
  small establishments
• Policy and planning dimensions of the role are
  accorded a higher priority in larger firms. Small
  firms are less concerned with formalising the
  function, writing policies and developing systems

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• Significant differences in ranking of priority
  and the amount of time allocated. Networking
  activities are very time consuming. The delivery
  of training is also a time consuming activity
• Needs Analysis provides an important indication
  of Strategic Approach
• There is a high level of awareness of the need to
  conduct TNA
• Major differences between small and large
  establishments on practices
• Small firms rely very much on reactive, informal
  methods
• Large firms make major use of performance
  management, training audits, competency profiling
  and 360o feedback
• Requests for training and development primarily
  come from line managers and employees

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• In large firms they are also likely to be
  generated by divisional and functional heads and
  the T/D department
• In small firms customers and suppliers had a
  significant impact in generating requests for
  training
• The data on evaluating training and development
  reveals a mixed picture
• Large establishments are more likely to evaluate
  training and development than small
  establishments
• Small establishments tend to rely on informal
  feedback
• Large establishments primarily conduct reaction
  or level 1 evaluation
• Some evidence in large establishments of level 3
  evaluation. Very limited evidence of return on
  investment studies

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• Barriers to participation in training and
  development exist. The main barriers include
• Employees too busy to attend
• Family and personal commitments
• Perceptions that the training and development is
  not relevant
• Resistance from line managers
• Greater evidence of barriers encountered in small
  firms

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Learning Strategies and MethodsUsed in
Establishments

• Overall trend is similar to that found in 2001
• Learning Strategies (Organisation-Wide)
• Major usage of the following learning strategies
  in large establishments
• Performance management reviews
• Training for trainers and instructors
• Personal development plans
• Job-rotation and cross-training strategies
• Moderate usage of the following learning
  strategies in large establishments

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• Project learning
• Formal mentoring and coaching
• Multi-skilling strategies
• 360o Feedback
• Low usage of the following strategies in large
  establishments
• Learning networks
• Self-directed teams
• Total quality management and quality teams
• Small establishments report low usage of all of
  the learning strategies listed
• Learning Methods
• Organisations use many different training and
  development methods
• Very strong usage of the following methods
• Face-to-face training
• On-the-job training

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• Formal education programmes
• Coaching / mentoring
• Conferences
• Moderate usage of
• Open Learning
• CD ROMs
• Intranet as a training tool
• Internet
• Low usage of
• Video and audio based learning
• Action learning sets
• Extranet
• Other forms of CBT
• There are major differences between large and
  small establishments
• Small establishments primarily rely on face to
  face training, on-the-job training and formal
  education programmes

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• Small establishments make little use of
  electronic methods
• Large establishments make significantly more
  usage of mentoring, job rotation, coaching and
  project / matrix teams
• US-Owned firms make major usage of
• Performance management reviews
• 360o Feedback processes
• Personal development plans
• Coaching and mentoring processes
• Evidence of increased usage of competency based
  systems in larger establishments.
• More frequently used for senior management,
  professional and supervisory staff
• Limited usage in small establishments
• A decline in usage since 2001 for craft,
  technical and semi-skilled categories

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• Evidence of a reduction in the amount of training
  and development contracted-out or outsourced
• Decline occurs for all categories
• Most significant decline is for professional,
  technical, administrative, electrical and
  semi-skilled categories
• Evidence of non-formal learning activities in
  organisations
• Learning through conversations with peers
• Helping employees with difficult work problems
• Informal day to day coaching and mentoring
• Team problem solving activities
• Project and continuous improvement activities

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Characteristics of Irish Trainingand Development
Specialists

• Strong representation of females in the training
  and development profession
• Very high level of professional involvement(i.e.
  CIPD membership)
• Very high level of education 74 of respondents
  had a primary degree or higher
• Evidence of long tenure in training and
  development
• A significant proportion of trainers had started
  out in training and development or another
  professional / technical area

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• Respondents consider that effective training and
  development managers should possess a combination
  of general management competencies as well as
  more specialist competencies
• Knowledge of business objectives
• Knowledge of people management
• Training needs analysis
• Training and development evaluation
• Consultancy skills
• Networking and political skills
• Business planning skills
• The trend is similar for both sets of
  respondents. Little change since 2001
• Specialists are well represented in the
  organisational decision making process and there
  is evidence of strong commitment to training and
  development

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Certification Qualifications andSupport for
Educational Activities

• Major evidence of demand for certification of
  training and development
• Main reasons for increased demand include
• Enhance employability
• Facilitate succession
• Facilitate retention
• To meet needs of customers and suppliers
• Demand for qualification-based training has
  increased most for professional and technical
  staff, supervisory, administrative and senior
  management

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• The 2003 study shows a significant decline in
  provision of qualification-based training for
  semi-skilled staff, craft and technical staff
• Smaller level of decline for other job
  categories
• Significant evidence of financial support for
  trainingand time off for study
• Some establishments impose a condition of
  support. There is mixed evidence concerning its
  effectiveness

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Key Conclusions

• Investment in training decreased slightly since
  2001
• Training and development is moderately strategic
  in its approach
• Traditional training and development methods and
  strategies prevail
• e-learning has shown limited growth in usage
• Evaluation of training and development remains a
  challenge
• The outsourcing / contracting pendulum swings
  slightly

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• Those responsible for training and development
  are well qualified
• Strong evidence of stakeholder involvement in
  training and development
• Growth in competency-based systems for particular
  categories of employees
• Increased demand for certification and
  qualification-based training
• Widespread financial support policies for
  professional development
• Increased recognition of non-formal learning
• Some evidence of changing role priorities for
  training and development managers

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