W H I T E PA P E R
Learning and Development Trends in India An insightful look at Learner Engagement, Learning Budgets, and Evaluating Learning’s Impact
Executive Summary Learning and Development (L&D) is a primary function of growth and sustainability for organizations. However, finding the right balance between program costs and learner needs while generating a measurable business impact is a challenge for many organizations today. This report takes an in-depth look at the current L&D landscape and direction in India by exploring the current needs and challenges of both learners and L&D decision-makers. The findings point to three areas decision-makers should focus on in order to ensure the impact generated by L&D drives both sustainability and growth for the organization. The three areas of focus include driving learner engagement factors, managing L&D budgets effectively and measuring the impact and effectiveness of L&D within the organization.
Learning and Development Trends in India | 2013
Table of Contents
2
1) Introduction
3
2) D riving Learner Engagement
3
3) L&D Budgeting Trends
6
4) Evaluating Impact and Effectiveness
7
5) Key Takeaways
9
6) Recommendations
10
7) Appendix I: Research Methodology
10
8) Appendix II: Sources & References
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Learning and Development Trends in India | 2013
1.0 Introduction Learning and development (L&D) is a strategic business process. There is now intense pressure to demonstrate both effective learning outcomes as well as a measurable return on investment on chosen L&D initiatives. Placing emphasis on the real learning impact on employees and adapting programs to learners’ specific needs enhances employee commitment and can help to steer organizations towards greater financial growth and sustainability.i Maintaining a balance between learning expenses and desired, tangible learning outcomes is a tightrope all L&D leaders must walk on in order to be seen as contributing positively to the business. Focusing solely on hard financial returns could cause an organization to underfund talent development and compromise the ability to execute against the organizational goals. The rapid proliferation of information technologies and frequently-changing learner needs add an extra layer of difficulty, as L&D decision-makers need to constantly re-evaluate the long-term effectiveness of their budgeting, business alignment, quantified results or risk diminished impact. This report assesses current L&D trends in India. The three areas of focus covered in this report include: 1)
Driving learner engagement
2)
L&D budgeting trends
3)
Evaluating impact and effectiveness
The target audience for this study was decision-makers at organizations in India who represents senior management in charge of L&D budgets and program growth. A survey questionnaire was designed which targeted both decision-makers and learners, as insights from the latter group were deemed essential to understanding current needs and challenges related to L&D. The survey asked a range of questions related to the respondent’s needs and current challenges depending on whether they were a decision maker or learner.
2.0 Driving Learner Engagement Employee engagement is becoming increasingly important for organizations to drive business performance and remain competitive. A research study that surveyed employees of a company in North India observed that engagement is a critical component of business performance as highly engaged employees make significant contributions to their organizations.ii Engagement also has a significant influence on employee retention, which is one of the top challenges faced by organizations in India.iii Learner engagement should therefore be one of the top priorities of L&D leaders to create a more sustainable and positive impact on the business.
i
Brum, S. (2007). What Impact Does Training Have on Employee Commitment and Employee Turnover? Schmidt Labor Research Center Seminar Paper Series. University of Rhode Island. Retrieved from http://www.uri.edu/research/lrc/research/papers/Brum-Commitment.pdf ii
Rai, A. (2012). A Comprehensive Study of Practice of Work Engagement for an Effective Organization. National Conference on emerging Challenges for Sustainable Business 2012. Retrieved from http://domsiitr.minddevicetech.com/allpaper/A%20comprehensive%20study%20of%20practice_Anjali%20Rai_HRM029.pdf iii
Aberdeen Group. (2010). L&D Trends in India: The State of Front-line and Mid-Level Manager Development. Retrieved from: http://www.aberdeen.com/AberdeenLibrary/6665/SI-learning-employee-development.aspx
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Learning and Development Trends in India | 2013
Learner engagement impacts work performance When asked about the impact of L&D on work performance, 81% of surveyed learners in India indicated that they have been able to apply the skills they gained from learning programs, and 74% noted that the learning programs directly impact their work performance (Figure 1). Organizations must therefore keep learners engaged to effectively equip them with the knowledge and skills they need at work. Ensuring that learning is made easily available, offering a range of learning modalities, and structuring the learning program in a way that meets learners’ needs, are steps organizations can take to foster and improve learner engagement. Figure 1. Learners who indicated their level of agreement on the impact of learning on their work performance. I have been able to apply the skills I have gained from the learning programs available to me at my organization. The learning that is available to me through my organization directly impacts my job performance.
2%
5%
59%
3%
55%
19%
Strongly Disagree
22%
Disagree
19%
Agree
Strongly Agree
Learning should be made accessible anytime, anywhere and on mobile devices Innovations in technology continue to redefine the learning landscape and learners today increasingly want to access learning resources anytime and anywhere. Besides accessing learning from the workplace (90%), learners in India are accessing learning resources from their homes (54%) and when they are commuting (24%). Organizations must respond to these trends and change the way they approach L&D. Offering elearning resources as part of the learning program is critical to keep learners engaged in learning as the need for more flexibility in learning increases. Extending learning offerings to mobile devices is also becoming critically important. The survey findings revealed that 86% of surveyed learners in India prefer to access learning on their mobile devices. However, only 46% of surveyed organizations in India indicated that they are providing learners with the access to learning resources on mobile devices. The top reason cited by 54% of surveyed decision-makers for this lack of offering was technological or IT security challenges.
86%
4
BUT ONLY
46%
of learners prefer to or sometimes prefer to access learning
of organizations in India have learning programs
on their mobile devices (smartphones, tablets, or laptops)
available on mobile devices
Learning and Development Trends in India | 2013
Organizations must offer a blend of learning options that support interactivity and flexibility Many organizations in India are realizing the benefits of utilizing a mix of learning modalities in L&D initiatives. The findings revealed that 92% of surveyed organizations offer learners the access to both classroom learning and elearning. Blended learning is also on the rise and was identified as one of the top trends to emerge in the knowledge delivery industry.iv In a blended learning approach, where a portion of instructor-led training is replaced by elearning, learners and organizations can take advantage of the benefits of both traditional delivery modes and elearning. When asked about what they like in classroom learning, the majority of surveyed learners in India (78%) responded that they like how it enables two-way communication with their peers and instructors and provides the opportunity to clarify their doubts instantly. Other positive attributes of classroom learning that were identified by surveyed learners include sharing and collaboration (22%), networking opportunities (17%) and hands-on learning (17%). The top two preferences for elearning were the flexibility and convenience to learn at any time and place (68%), and being able to learn at one’s own pace (32%). Elearning is also increasingly offering learners opportunities to interact and collaborate with peers and instructors. Tools such as inGenius™ enable subject matter experts, mentors and peers to build greater context into content through social learning, while Skillsoft learning solutions such as Live Learning™ bring the benefits of traditional classroom training to the desktop. Tailored program structure and ease of access are characteristics of an effective learning program Organizations must clearly identify and address current learning challenges to attain high participation and engagement rates in the learning program. In India, time constraints was identified as the top learning challenge in an open-ended question by 35% of surveyed learners. This situation is also prevalent across the Asia Pacific region, where 46% of surveyed learners cited the same learning challenge. In addition to that, 10% of surveyed learners in India indicated that the skills they gained from the learning program have low applicability in their work functions. Organizations should therefore structure L&D offerings in bite-sizes to fit time-starved schedules and map the learning program according to learners’ work functions and career development. Technical difficulties also represent a significant learning obstacle in India, with 10% of surveyed learners who identified poor internet connectivity and technical issues in accessing learning as one of the top three learning challenges. L&D initiatives should therefore be evaluated against organizations’ technical capabilities before being implemented (Figure 2). Figure 2. The top three challenges faced by learners in India. Currently, what is the most pressing challenge you face as a learner? 57%
Time constraints
35% 10%
Low applicability for work purposes
Technical difficulties
iv
7%
10%
Rooney, J. E. (2003). Blended learning opportunities to enhance educational programming and meetings. Association Management, 55(5), 26-32.
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Learning and Development Trends in India | 2013
3.0 L&D Budgeting Trends The Chartered Institute of Personnel and Development (CIPD) International Learning and Talent Development Comparison Survey 2011 observed that L&D budgets in India mainly cover organizations’ spend on books, training manuals, external courses and conferences, and hiring external consultants and trainers. However, investments made in live coaching events (e.g. external conferences, workshop and events for L&D and coaching by external practitioners) appear to be on a decline for private sector organizations in India.v L&D budgets in India are increasing Budget and resource constraints were less often cited as a challenge by surveyed decisionmakers in India relative to the Asia Pacific region, where it was listed as the top challenge. In India, only 8% of surveyed decision-makers stated that they were Learning budgets have concerned about budget and resource constraints when increased for 67% of asked to identify their current most pressing challenge. This surveyed organizations comes as no surprise since learning budgets have increased for 67% of surveyed organizations over the past two years (Figure 3). Most surveyed organizations in India (75%) spend US$800 or less per learner on L&D, with 49% spending US$200 and below per learner. Learning budgets are relatively lower in India compared to the Asia Pacific region, where 42% of organizations estimated an annual spend of US$900 or more per learner on L&D (and 58% spend US $800 or less per learner on L&D) (Figure 4). However, it is important to note that the costs of acquiring and offering learning resources may vary in different countries when making budget comparisons. Figure 3. The increase or decrease of organizations’ learning budgets as identified by decision-makers.
APAC
26%
27%
INDIA
13%
Decreased
42%
19%
67%
No Change
Increased
Figure 4. Organizations’ estimated spend on learning and development as identified by decision-makers. What is your organization’s estimated annual spend per learner (USD) on Learning & Development?
APAC
26%
INDIA
49%
$0 to $200
v
6
$300 to $500
21%
14%
11%
18%
$600 to $800
8%
10%
$900 to $1,100
3%
25%
14%
$1,200 to $1,400
CIPD. (2011). International Learning and Talent Development Comparison Survey 2011. Retrieved from http://www.cipd.co.uk/hr-resources/survey-reports/international-learning-talent-development-comparison-survey-2011.aspx
$1,500 or more
Learning and Development Trends in India | 2013
Elearning is widespread in India but investments are conservative There is a widespread adoption of elearning in India, which suggests that organizations in the country have made significant progress in integrating learning technologies into L&D programs.vi However, elearning represents 1-20% of the overall investments in learning programs for the majority (44%) of surveyed organizations in India (Figure 5). The estimated annual spend on elearning for most organizations in India (65%) was US$200 or less per learner. (Figure 6). Figure 5. The share of L&D budget organizations in India allocate to elearning as indicated by decision-makers. How much of the overall learning programs you invest in are elearning, as opposed to classroom-style learning?
5% 2%
5%
1-20%
14%
21-40%
9%
41-60% 61-80%
23%
81-99%
44%
100% Not Sure
Figure 6. What is your organization’s estimated annual spend per learner (USD) on e-learning?
APAC
57%
INDIA
19%
65%
$0 to $200
$300 to $500
15%
$600 to $800
6%
8%
6%
10%
$900 to $1,100
2%
8%
1% 3%
$1,200 to $1,400
$1,500 or more
4.0 Evaluating Impact and Effectiveness Assessing learning impact is the first step in determining the type of L&D program learners need to effectively perform their work functions. Research from CIPD observed that with a formal evaluation process and clear success criteria to measure outcomes, organizations are more likely to conduct effective talent management practices. It is worth noting that organizations in India use less of anecdotal evidence or observation of changes in evaluating talent management practices, but instead evaluate effectiveness based on their own criteria such as the retention of those that they have identified as ‘high potential’.vii
vi Rooney, J. E. (2003). Blended learning opportunities to enhance educational programming and meetings. Association Management, 55(5), 26-32. vii CIPD. (2011). International Learning and Talent Development Comparison Survey 2011. Retrieved from http://www.cipd.co.uk/hr-resources/survey-reports/international-learning-talent-development-comparison-survey-2011.aspx
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Learning and Development Trends in India | 2013
Many organizations appear to measure for measurement’s sake Most organizations in India (97%) find the measurement and reporting of L&D program’s effectiveness and impact important. In fact, 83% of surveyed organizations gather feedback from learners on the learning program. “Improved performance by employee” (72%), “employee satisfaction” (64%) and “return on investment” (51%) are the top three metrics most commonly used by surveyed organizations in India to measure the impact and effectiveness of L&D programs. These critical metrics may vary across different organizations but the key to a useful evaluation lies in how organizations translate the data into insights and actions that can inform and enhance their L&D strategies. In India, only slightly more than half (53%) of surveyed learners believe that their organizations are putting the insights into action by actively making adjustments to the learning program.
83%
53%
74%
of learners believe that their organizations have a clear and effective process and standard metrics in place
of learners state that their organizations gather feedback on the learning programs
of learners believe that their organizations actively make adjustments to learning
Improving the effectiveness of learning has an impact on work performance The top challenge for organizations in India is offering an effective learning program that impacts the business. 18% of surveyed decision-makers shared that their most pressing challenge is increasing learning transfer, improving the effectiveness of learning solutions on work performance, and promoting the ease of learning. For L&D to effectively develop capabilities and contribute to the business, it is essential that organizations use learner insights to improve and tailor learning offerings. Creating an internal marketing plan to communicate the benefits of improved learning offerings will encourage greater participation and engagement in L&D. Notably, this research found that learners were more likely to believe learning programs directly impact their work performance when the organization actively makes adjustments to the learning program based on evaluation results and learner feedback (Figure 7). Figure 7. Learners who indicated if their organizations actively make adjustments to the learning program to suit their interests/needs and their level of agreement on the impact of the learning program on their job performance. The learning that is available to me through my organization directly impacts my job performance.
Organizations that actively make adjustments to the learning program to suit interest/needs. Organizations that do not actively make adjustmnents to the learning program to suit interest/needs.
13% Strongly Disagree
8
32%
61%
13%
25%
Disagree
13%
Agree
Strongly Agree
Learning and Development Trends in India | 2013
5.0 Key Takeaways 5.1 Engagement 1. Employee engagement has been recognized as a critical component of business performance in India that influences employee contributionsviii and employee retention.ix With learning creating a direct impact on employees’ work performance, learner engagement should be highly prioritized. Improving learner engagement involves understanding and meeting learner needs and preferences. 2. Innovations in technology are redefining the learning landscape (86% of surveyed learners in India indicated a preference to access learning on their mobile devices). With time-starved schedules, learners are also looking to their organizations to deliver L&D via new modalities that allow more flexibility and convenience in learning. Organizations should therefore respond to these trends and leverage technology and mobile devices to make learning resources available anytime, anywhere to learners.
5.2 Budgets 1. L&D budgets in India have increased over the past two years, a stark contrast to tightening budgets across the rest of the Asia Pacific region. Budget and resource constraints were often less cited as a challenge (only 8% of surveyed decision-makers identified budget and resource constraints as their most pressing challenge). 2. Although there is widespread adoption of elearning in India, organizations are making conservative investments. Elearning investments represent 1-20% of the overall investments in learning program for the 44% of surveyed organizations in India.
5.3 Evaluation 1. The importance of measurement and evaluation in L&D is widely recognized in India (97% of surveyed organizations find the measurement and reporting of L&D program’s effectiveness and impact important) and most organizations (83%) gather feedback from learners. Organizations in India are also beginning to expand traditional evaluation metrics (which focus primarily on learner performance and satisfaction) to now include value based measurements such as Return on Investment (ROI) or Skillsoft’s own Value Impact Analysis (VIA)™. 2. Developing an effective learning program was cited as the top challenge by decision-makers in India. For L&D teams to effectively deliver value to learners and the business, it is essential to use learner insights to improve and tailor learning offerings. Communicating the benefits of improved learning offerings to learners will encourage greater participation and engagement. (93% of surveyed learners find learning directly impacting their work performance when they believe that their organizations actively make adjustments to the learning program. This figure is lower at 38% when learners believe that their organizations do not actively make adjustments to the learning program.)
viii
Rai, A. (2012). A Comprehensive Study of Practice of Work Engagement for an Effective Organization. National Conference on emerging Challenges for Sustainable Business 2012. Retrieved from: http://domsiitr.minddevicetech.com/allpaper/A%20comprehensive%20study%20of%20practice_Anjali%20Rai_HRM029.pdf ix
Aberdeen Group. (2010). L&D Trends in India: The State of Front-line and Mid-Level Manager Development. Retrieved from: http://www.aberdeen.com/Aberdeen-Library/6665/SI-learning-employee-development.aspx
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Learning and Development Trends in India | 2013
6.0 Recommendations 6.1 Engagement 1. In developing a portfolio of learning assets, it is essential to consider how L&D teams can address organization and learner needs, and structure learning offerings in a way that engages learners effectively and maximizes the business impact. L&D can be aligned to business initiatives, project teams, job roles and competencies. A comprehensive internal marketing strategy and plan that clearly communicates the purpose of this alignment will help to drive greater interest and engagement in learning. 2. All current learning assets should be reviewed to determine the appropriate learning modality and for optimum blending. Different learning, cultural and technical preferences of your target learning audience should be considered during the evaluation process.
6.2 Budgets 1. L&D budgets can be maximized in usage and made more cost-effective through effective planning and developing benchmarks for program efficiency. Three important efficiency metrics to focus on are (1) delivery mix (distribution of your training delivery through classroom and technology modalities, (2) learner reach (number of employees participating in learning offerings) and (3) program cost per hour (average investment per learning hour). The most rigorous and effective approach to budget management would encompass a more datadriven solution, such as using Skillsoft’s L&D Budget Optimization Analysis tool.
6.3 Evaluation 1. The evaluation and measurement strategy has to be communicated as early as possible to secure initial executive buy-in. Performance metrics should clearly validate the effectiveness of the learning program and they should be aligned with the organization’s strategic goals. 2. L&D executives should continually use learner insights to improve and tailor learning offerings. This will encourage greater participation and engagement, and increase the value learning brings to the business.
7.0 Appendix I: Research Methodology Online surveys were distributed to Skillsoft’s database and existing clients, which includes learners and decision-makers from various organizations. The survey gathered 490 responses and covered 13 markets in Asia Pacific, with 270 responses from developed countries (Australia, Brunei, Hong Kong, New Zealand, Singapore and South Korea) and 220 responses from emerging countries (China, India, Indonesia, Malaysia, Philippines, Solomon Islands, Thailand and Vietnam). For the purpose of this report, data (159 survey responses) from India were analyzed, which covers more than nearly 100 businesses and organizations across 20 industry sectors. Organizations from IT/technical services and education/training represented 42% of the data collected. Through this, the paper aims to uncover L&D trends and insights in India.
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Learning and Development Trends in India | 2013
8.0 Appendix II: Sources & References Brum, S. (2007). What Impact Does Training Have on Employee Commitment and Employee Turnover? Schmidt Labor Research Center Seminar Paper Series. University of Rhode Island. Retrieved from: http://www.uri.edu/research/lrc/research/papers/Brum-Commitment.pdf Rai, A. (2012). A Comprehensive Study of Practice of Work Engagement for an Effective Organization. National Conference on emerging Challenges for Sustainable Business 2012. Retrieved from: http://domsiitr.minddevicetech.com/allpaper/A%20comprehensive%20study%20of%20practice_ Anjali%20Rai_HRM029.pdf Aberdeen Group. (2010). L&D Trends in India: The State of Front-line and Mid-Level Manager Development. Retrieved from: http://www.aberdeen.com/Aberdeen-Library/6665/SI-learning-employee-development.aspx Rooney, J. E. (2003). Blended learning opportunities to enhance educational programming and meetings. Association Management, 55(5), 26-32. CIPD. (2011). International Learning and Talent Development Comparison Survey 2011. Retrieved from: http://www.cipd.co.uk/hr-resources/survey-reports/international-learning-talent-developmentcomparison-survey-2011.aspx
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Learning and Development Trends in India | 2013
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