People Development and Training Expenditure Survey

Transcription

1 People Development and Training Expenditure Survey May 2013

2 About is Australia s leading provider of integrated human resources solutions. Since 1998 we have worked assisting organisations to create and manage productive, rewarding and lawful workplace cultures. has a team of experienced consultants across Australia, South East Asia and New Zealand and provides services to professional organisations, representing some of the region s highest profile private, not-for-profit and government brands. What we do offers a comprehensive suite of services encompassing: Workplace Investigations Workplace Relations / Industrial Relations Employer Advisory and Consulting Training How we work Online Training ihr is able to provide your organisation with flexible access to our experts in the following ways: Short-term On demand Consulting Projects Onsite partnering Outsourcing The ihr approach ihr seeks to understand your organisation, its drivers, its culture and its objectives. We tailor our solutions and services according to your specific needs, particular environment and operating framework. We ensure that our deliverables are sustainable and can be self-driven and managed. is not a part of, or affiliated with, an employer association or government agency. We guarantee that our advisors and consultants operate with the highest level of integrity and ethics to provide independent advice in the best interests of your organisation. We encourage all participants to visit our social media sites. Please follow the links at May 2013 v 0.1 Page 2 of 20

3 Table of Contents Section Page Executive Summary 4 Section 1 - Respondent characteristics 5 Section 2 - Training expenditure and people development survey: results 9 May 2013 v 0.1 Page 3 of 20

4 Executive Summary conducted the 2013 People Development and Training Expenditure Survey with the objective of gaining a better understanding of current trends and forward intentions of people development and training in Australia. The survey was conducted between February and May It includes responses from 115 participants from a wide range of industry sectors. Most are from larger (100+ employee) businesses with multi-site operations. Most participants (96%) are Australian-based. The Survey offers a fascinating snapshot of Australian management s preferences and intentions around training in the context of a sluggish economy and an uncertain political climate. The Survey responses indicate that Australian companies undertake significant expenditure on operations, leadership and compliance training. A large portion of this expenditure is neither nationally accredited nor publicly funded and, as such, may not necessarily be counted in official national training spend statistics. This is probably unsurprising as the vast majority of respondents indicated that training has a positive performance impact on their business. However, it is perhaps a sign of tougher economic times coupled with political uncertainty, that fewer respondents (by a small margin) anticipate their 2014 training budget to be greater than their 2013 training budget. This result suggests a determination on the part of respondents to extract better value for money from training budgets, consistent with the trend towards elearning described in the Survey. The Survey also outlines some key gaps in managers skill sets around recruitment, managing performance, giving feedback and conducting meetings - as such, it shines a light on some key training needs in the Leadership and Compliance spaces. A strong link between training and operational impact has been drawn by survey respondents, no doubt with an eye to obtaining a productivity and performance advantage over the competition. As such, in a tighter economic environment, focused and relevant training makes more business sense than ever. May 2013 v 0.1 Page 4 of 20

5 Section 1 - Respondent characteristics Which industry group does your organisation belong to? The respondent organisations derive from a wide variety of industries, with the greatest representation being from the following sectors: 1. Finance and insurance (13%); 2. Health and community services (11%); and 3. Local Government/Local Councils (11%). Industry categories Answer Options Accommodation, cafes and restaurants 4.4% Agriculture, forestry, fishing and hunting 0.9% Charities / Not for profit 8.8% Communication services 3.5% Construction 4.4% Cultural and recreational services 0.0% Education 5.3% Electricity, gas and water supply 2.6% Response Percentage Finance and insurance 13.2% Government administration and defence 3.5% Health and community service 10.5% Local Government / Local Councils 10.5% Manufacturing 7.9% Mining 4.4% Personal and other Services 2.6% Property and business services 5.3% Retail trade 5.3% Transport and storage 7.0% May 2013 v 0.1 Page 5 of 20

6 Section 1 - Respondent characteristics (continued) Ability to influence Learning and Development Direction of Organisation Most respondents (77%) are in a position to directly influence Training and Development within their organisation. Therefore it can be assumed that the survey responses are somewhat predictive in terms of company experience and intentions. Ability to influence L&D direction of organisation May 2013 v 0.1 Page 6 of 20

7 Section 1 - Respondent characteristics (continued) How many employees does your organisation have? Respondent organisations vary in size, with: employee organisations being the largest category (31%); 2. followed by employee organisations (20%); and employee organisations (17%). This indicates that the sum of the training budgets of companies participating in the survey represents a significant expenditure Respondent organisation size - employee numbers May 2013 v 0.1 Page 7 of 20

8 Section 1 - Respondent characteristics (continued) How many sites/locations does your organisation operate from? Most organisations operate from two or more sites, with: percent operating from two to five sites; percent operating from six to twenty sites; and percent operating from 21 to 100 sites. As well as indicating the significant size and scale of many of the organisations participating in this survey, it also underlines the challenges managers face in terms of encouraging a universal team culture across the whole of the business (ie. across all sites). Number of sites organisation operates from May 2013 v 0.1 Page 8 of 20

9 Section 2 - Training expenditure and people development survey results What are the top three challenges managers face when managing people? Managers face a variety of challenges when managing people. First and foremost are: 1. Motivating their team (52%); 2. Recruiting people (50%); 3. Skills shortages (45%); and 4. Meeting remuneration expectations (42%). Less important are diversity/lifestyle issues such as: 5. Meeting work-life balance (34%) 6. Meeting the expectations of different generations (27%); and 7. Cultural diversity (10%). This suggests that the most acute challenges for Australian management tend to reside in the bread and butter, core business space of recruitment, motivation and reward, rather than in the lifestyle space. May 2013 v 0.1 Page 9 of 20

10 Section 2 - Training expenditure and people development survey results (Continued) Beyond operations training (technical skills required to do the job) approximately what percentage of the training budget is used towards Leadership and Compliance Training e.g Diversity, Discrimination? Many respondent companies devote a significant percentage of their training budget towards this area in addition to operations or technical training - with over 83 percent of companies devoting 10 percent or more of their training budget to Leadership and Compliance training. While very few companies devoted 80 percent or more of their training budget to Leadership and Compliance Training (4%), 17 percent of companies devoted half of their training budget, 25 percent devoted around a third of their training budget (30%) and 37 percent of companies devoted 10 percent or more of their training budget. While it is not surprising technical/on the job operational training is paramount, deficiencies in management skill sets identified in future questions suggest a greater emphasis on Leadership and Compliance training may be necessary to boost company performance. Overall, these results indicate the strong money and time investment Australian companies make in both technical, operational, leadership and compliance training. Percentage of training budget used for Leadership/Compliance Training Be yo nd o p e ra tio ns tra ining (te chnica l skills re q uire d to d o the jo b ) a p p ro xima te ly wha t p e rce nta g e o f the tra ining b ud g e t is use d to wa rd s Le a d e rship a nd Co mp lia nce T ra ining e.g Dive rsity, Discrimina tio n? 80% 50% 30% 10% Other; please specify a percentage amount May 2013 v 0.1 Page 10 of 20

11 Section 2 - Training expenditure and people development survey results (Continued) Do you envisage the training budget for 2014 will be greater than the 2013 training budget? It is perhaps a sign of challenging economic times that fewer respondents anticipate that their 2014 training budget would be greater (39%) rather than lesser (41%) than their 2013 training budget. Around one-fifth of respondents (20%) are unsure. This result may also suggest a determination on the part of respondents to extract better value for money from training budgets, consistent with the trend towards elearning described under the question on page 18 regarding training methodologies. Training budget for 2014 greater than 2013 training budget? Do yo u e nvisa g e the tra ining b ud g e t fo r 2014 will b e g re a te r tha n the 2013 tra ining b ud g e t? Yes No Not sure May 2013 v 0.1 Page 11 of 20

12 Section 2 - Training expenditure and people development survey results (Continued) In your opinion, is there a link between training expenditure and overall organisational performance? The overwhelming majority of respondents believe there is a link between training expenditure and overall operational performance, with 89 percent reporting a positive link and 11 percent citing no link. While one must take into account the fact that most respondents are in human resources or learning and development roles and have a possible predisposition to training as a solution, this strongly underlines the proposition that there is a bottom line benefit in investing in staff training. Link between training and operational performance In yo ur o p inio n, is the re a link b e twe e n tra ining e xp e nd iture a nd o ve ra ll o rg a nisa tio na l p e rfo rma nce? Yes - please provide a reason for your response No - please provide a reason for your response May 2013 v 0.1 Page 12 of 20

13 Section 2 - Training expenditure and people development survey results (Continued) In your opinion, what are the key factors that prevent managers from having a conversation addressing poor performance and inappropriate behaviour? Respondents present a range of views on key factors preventing managers from having a conversation addressing poor performance and inappropriate behaviour. The key reasons cited are: 1. Ability and skills, encompassing knowledge and confidence (84%); 2. Willingness, including motivation and attitude (60%); and 3. Superior leader behaviour around setting expectations and providing feedback (37%). Less important are organisational obstacles, such as resourcing, culture, systems/processes and physical environment (22%) and personal issues such as financial, relationships and health (9%). The responses arguably indicate deficiencies in leadership and management skills in combating poor performance and behaviours - pointing to a possible need for up-skilling, training and professional development in this space. Key factors preventing managers from having a conversation addressing poor performance/inappropriate behaviour Answer Options Response Percentage Ability, skills knowledge and confidence 84.2% Personal issues financial, relationships and health 8.8% Willingness motivation and attitude 59.6% Superior leader behaviour setting expectations and providing feedback Organisational obstacles resourcing, culture, systems/processes, physical environment 36.8% 21.9% May 2013 v 0.1 Page 13 of 20

14 Section 2 - Training expenditure and people development survey results (Continued) What elements of Managing Performance do your managers find most challenging? Respondents report a variety of challenging elements in Managing Performance, chiefly: 1. Giving effective feedback (negative and positive) (86%); 2. Setting expectations (49%); 3. Empowering staff (41%); and 4. Identifying and developing staff ability (39%). Less challenging are: 5. Supporting and encouraging staff (28%); 6. Motivating staff (25%); and 7. Rewarding staff (23%). The responses arguably indicate that managers find it easier to have positive conversations with staff around developing, supporting and encouraging, motivating and rewarding rather than harder, outcomes-based conversations around giving feedback, setting expectations and empowering. This indicates that managers struggle to provide specific feedback to employees. A high level of enquiries to relate to issues regarding managers having the confidence, knowledge and skills to have the difficult conversations. This is consistent across ihr s training and workplace relations enquiries mirroring the findings in this survey. The responses indicate a potential need for manager up-skilling, training and professional development in the area of Managing Performance generally, and engaging in Professional and Courageous Conversations more specifically. Elements of Managing Performance managers find most challenging Answer Options Response Percentage Motivating staff 24.6% Giving effective feedback, both negative and positive 86.0% Identifying and developing staff ability 38.6% Setting expectations 49.1% Supporting and encouraging staff 28.1% Empowering staff 41.2% Rewarding staff 22.8% May 2013 v 0.1 Page 14 of 20

15 Section 2 - Training expenditure and people development survey results (Continued) What are the most common mistakes made by managers when conducting interviews? Respondents report a number of common mistakes made when conducting interviews, among them: 1. The interviewer doing most of the talking (58%); 2. The interviewer failing to adequately prepare (54%); and 3. The interviewer making a premature decision (41%). The responses indicate a possible need for up-skilling of managers in the recruitment and retention sphere, including around the potential impacts of inappropriate hiring decisions for example, additional recruitment costs, possible unfair dismissal claims and reduced productivity. Most common mistakes made by managers when conducting interviews Answer Options Response Percentage The interviewer does most of the talking 57.9% The interviewer fails to adequately prepare 54.4% The interviewer ignores the interview structure 30.7% The interviewer lacks a clear purpose 21.1% The interviewer does not understand the requirements of the role 18.4% The interviewer has interviewer bias 26.3% The interviewer makes a premature decision 41.2% The interviewer chooses an inappropriate setting 8.8% May 2013 v 0.1 Page 15 of 20

16 Section 2 - Training expenditure and people development survey results (Continued) What are the key reasons managers fail to run productive meetings? Respondents report a number of key reasons why managers fail to run productive meetings, including: 1. Failure to define the purpose of the meeting (54%); 2. Failure to prepare an agenda (50%); 3. No creation of action items and allocation to staff (49%); and 4. Failure to prepare and provide meeting documents (40%). Meetings are an important tool in running an effective organisation badly run meetings contribute to confusion about the organisation or team s mission, low morale and low productivity. Key reasons managers fail to run productive meetings Answer Options Response Percentage Failure to define the purpose of the meeting 54.4% Failure to prepare and provide meeting documents 40.4% Failure to prepare an agenda 50.0% No notes taken or meaningful minutes recorded 38.6% Failure to establish protocols 30.7% No creation of action items and allocation to staff 49.1% May 2013 v 0.1 Page 16 of 20

17 Section 2 - Training expenditure and people development survey results (Continued) Which training methodologies does your organisation use? Respondents differed in terms of the training methodologies used by their organisation, choosing, in order: 1. Face-to-Face training (82%); 2. elearning (68%); 3. Blended Learning (52%); and 4. Self-paced Learning (39%). These responses indicate that Face-to-Face training is still overwhelmingly popular with respondents, with over two-thirds of respondents also using elearning and around half of respondents favouring a Blended approach. Although the reasons for this preference are not clear, the statistics indicate an encouraging trend with organisations appearing to recognise the benefits of a range of training methodologies and not simply offering the cheapest or simplest option to employees. Training methodologies your organisation uses W hich tra ining me tho d o lo g ie s d o e s yo ur o rg a nisa tio n use? 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% elearning Blended Learning Face to Face Self paced We don't provide training May 2013 v 0.1 Page 17 of 20

18 Section 2 - Training expenditure and people development survey results (Continued) If your organisation uses elearning, do you feel you will use more, less, or the same? For those organisations that use elearning, half will use more this year (51%), with around a third using about the same (35%). No respondents indicated that their organisation would use less elearning this year. These responses indicate that elearning is increasing in popularity, perhaps as a result of cost-down pressures on training budgets, time pressures on staff and the resultant quest for better value training. This may also show an increase in the quality of elearning offered and further recognition of its value. Coupled with the statistics regarding training methodologies in the previous question, we see that a more varied approach to training across the organisation may be favoured in future. Will you use more, less, or the same amount of elearning? May 2013 v 0.1 Page 18 of 20

19 Notes May 2013 v 0.1 Page 19 of 20

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