Tuesday 2 October 2012

The Asian Corporate Training Market - Leveraging Brain Power


Corporate Training is a market grossing over $280 billion worldwide. The majority of this expenditure however comes from North America where companies and government organizations spent over $130 billion on training services last year. This is rather strange given the fact that the bulk of the world's population is not in North America but in Asia, which only represents 17% of the global market including India; a pale comparison with North America's 45%!

So why is it that the Western world spends more on learning and development than it's larger more populous counterparts? The answer may lie in the simple saying "you get what you pay for". 

In North America companies that offer training and services in executive education must abide by certain codes and guidelines, which include employing staff that are adequately trained and qualified. In order to offer services in corporate training professionals in North America usually have a background in Business (i.e. B.Comm or BBA) coupled with a professional qualification in training such as a CTP (Certified Training Professional), if they do not possess a level of education that is equivalent to or higher than a Masters degree. Some even have such qualifications on top of their MBA or PhD degrees.

Garnering the appropriate qualifications comes at a price and by the time training professionals are through with their education they are well aware of their market value. Thus employing adequately qualified individuals doesn't come cheap! However there are endless benefits to employing a professional in the field of training; for instance he/she will be able to provide invaluable feedback and insight in to how training programs should be structured and administered. 

With "Train the Trainer" courses and workshops becoming popular in Asia many individuals are jumping on the corporate training bandwagon. The majority of these individuals seem to originate from the airline industry and are in most cases former flight attendants. These types of "trainers" are becoming increasingly prevalent in South Asia. Granted elite airlines do offer their employees a  training in food and wine along with customer service and etiquette, working aboard a jet hardly qualifies as corporate exposure (unless they engage in frequent corporate-centric discussions with business class passengers ). This may seem harsh but it's the ugly truth! 

The South Asian corporate training market is also a victim of another type of "Trainer" the “ I’ve got X amount of years of work experience so I must know what I’m doing” trainer. Often times these individuals do not possess a post secondary education relevant to the corporate training industry but build their business on contacts and influence. The real injustice in hiring these types of individuals is done in fact to the participants of their workshops who have invested time and money but aren’t aware that the advice and training they’re getting is not built upon sound knowledge and relevant experience in the field of training.

The reason for Asia’s expenditure being so marginal in comparison to that of North America is that individuals who are not experts in the field of corporate training often charge professional fees that are much lower than those of sound and proven training professionals. A one day training conference in North America would cost a minimum of approximately $125 whereas a similar conference in Asia could cost as little as $50. Another important factor is the barter system. The Asian culture as a whole fosters bargaining and citizens often look for the best deal, failing to realize that in the knowledge market cheap may not always be the best deal! They want something for nothing but overlook the quality of product they are getting at a cheaper price.

The bottom line is that if Asian countries want to be on par with North America where professionalism and corporate know-how is concerned they need to invest more in their people. The capacity for knowledge and growth in Asia especially in the South Asian subcontinent is endless with eager youth and young graduates seeking to further themselves.  However in order for the Asian and South Asian markets to compete with North America on professionalism they need to employ adequately qualified corporate training professionals than can help them leverage their brain power and reach their full potential. And for the time being (at least until more standardized systems for trainer evaluation and certification are implemented) that may mean hiring outside the continent.

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