The training function is being reengineered and the focus is moving from cost generating activities to those that impact performance
Mindset to training has witnessed a paradigm shift - Pallavi Jha, Chairperson & MD, Walchand PeopleFirst Ltd.
The training industry in India has evolved significantly in the past 7 years. As per industry estimates, the total market-size is around eleven thousand crores. Of this, the soft skills development market alone accounts for about three thousand crores.
The overall mindset to training has witnessed a paradigm shift. Training has evolved from being a feel-good, reward-centric system, to a performance-linked setup employing best practices and challenging benchmarks. The over arching talent and skills shortage in today’s workforce has made it to the top on the CEO’s agenda. It is no longer just a concern within the HR domain but has reached a stage where it warrants a mainstream decision.
The bar has been raised for training organizations like never before. Corporate executives recognize that training investments represent 0.5-1% of revenues and impact as much as 40-45% of the staff costs. As such they are becoming accountable for the money they spend. This means training providers need to ensure a direct business relevance and measurable return on investment. There is also a lot of activity on reengineering the learning function. Focus is moving from cost generating activities to activities that impact corporate performance. Fixed resources dedicated to training will decrease. Investment in leadership development will therefore continue to be a key component of any workforce strategy that looks to a future of renewed profit and sustainable growth.
This, in turn, will result in greater outsourcing of training which spells opportunities for the training industry as a whole.