Training Services in China: A Long Way to Go

Training is undoubtedly an invaluable and necessary tool for staff development, but just how satisfied are buyers of training services in China?

Training in China is a relatively new industry.  Over the past 20 years, major city centres like Beijing and Shanghai have seen massive developments in the training industry.  The industry has become increasingly regulated and competitive but at the same time demand for training has increased dramatically over the past few years.

The UI China Training Report reveals that despite increasing competition and regulation in the training industry, a mere 3% of buyers feel that current training providers suit the needs of their company.   Although only 2% of buyers stated they felt dissatisfied with current training providers, a massive 94% felt only moderately satisfied with training they have undertaken.

These figures reflect the massive gap between buyer perceptions and the actual results of the training delivered.  Training providers need to concentrate on marketing what they can actually deliver instead of simply marketing what sells.  The lack of customer satisfaction reflects the need for constant improvement in the training industry.

How to use training as a staff retention tool

In western countries, many companies already see that offering comprehensive training programmes to their staff is an effective way of retaining their employees. In China, however, where staff retention is such a major issue, many companies attempt to keep staff by throwing more money at them when, in many cases, competitors match these packages, thereby creating only a short-term solution.

The added value in using training and development is proven and clear. Training creates an increase in attendance, company loyalty, innovation, skills, and productivity. Ongoing training as part of a general, employee-focused culture - one that values and responds to the needs of the employee - will help to create a strong, loyal workforce, that has no desire to move onto ‘greener pastures’ or the next big thing.

The Issues
Research undertaken in 2007 by Development Dimensions International (DDI) showed that Chinese companies saw a considerable increase in professional and support staff turnover in the years 2006 and 2007.

The employees surveyed cited two main reasons for changing jobs: lack of growth and development opportunities with their current employer and the perception of having better career opportunities elsewhere.

In further research, according to the International Workplace Survey conducted by recruitment specialists Robert Half International in 2007, 73% of employers globally believe training is the best way to boost staff retention.

Bearing in mind that the cost of replacing staff is 25-50% of the employee’s annual salary, it is essential that companies here find a solution to a problem that is only going to become more evident as China continues to develop.

The Solution
It is clear, then, that development opportunities are an important factor in retaining staff.

Recently, we assisted one of China’s leading banks to implement an employee-training programme in the run-up to the Olympics. They took our advice and tailored the training to the needs of the individuals’ own personal and professional goals, whilst tying it into the needs of the organisation as a whole.

In this instance, the company took the option of tying their staff into new contracts. If an employee left the company within two years of completing the training programme, they would be required to pay back either all, or a percentage, of the training cost. Whilst this does seem a hard line to take, it was effective. Employees had no hesitation in participating in the training programme. They felt empowered and saw the training as an excellent opportunity to improve their skills. In combination with a decent remuneration package and results-led bonus schemes, the employees had no reason to jump ship.

Employers must begin to grasp the value of training in this volatile job market. Successful companies that retain their staff will be those who are seen to be offering the best working experience – security, development and personal growth. There are many training options - everything from basic English language skills, through Time Management to tailored Leadership Development programmes for the most promising staff members. At whatever level the employee is at, training will make them feel valued and empowered and see themselves as part of a company that cares about its staff.

Yaxley Education provides tailored training solutions to companies in China looking to achieve more from their employees and prides itself on a deep understanding of its clients’ industry, company and training requirements.

Drew Ross, Managing Director, Yaxley Education