CIPD survey finds major differences in attitude to training with size being the most important factor

Firms in electronics, chemicals and the public sector are more likely to spend money on training than sectors such as agriculture and food, printing, retail and heavy engineering, a survey has found.

The report on training and development in the Republic revealed significant differences in the approach to training among the 221 establishments surveyed.

The survey, which was carried out for the Chartered Institute of Personnel and Development in Ireland (CIPD), found approaches to training depended on company size, sector and ownership characteristics - with size proving the most significant determinant. Smaller establishments were likely to deliver a higher proportion of training using more informal, ad hoc approaches. Larger firms tended to adopt a more formal and structured approach and were more likely to have in place a formalised training budget and to develop formal training plans, the report said.

The private sector is less likely to put in place a specific training budget than the public or semi-state sector, but on average provides more formal days' training per year to its employees.

More sophisticated training practices tend to be adopted by establishments that are part of US multinational or global corporations, whereas Irish-owned companies tend to rely on more traditional learning methods such as on-the-job training.

On the positive side, the report uncovered an improving training performance by Irish establishments. These operations now spend 3.85 per cent on average of payroll on training in a given year, with smaller enterprises spending slightly less, at around 3 per cent. The survey found that the mean number of days' training provided per employee over the past year was 5.61 days - although this fell to 3.55 days for small and medium-sized firms.

Organisations tended to provide more training for senior management personnel than for any other category, while those in professional and technical jobs were least likely to be given training.

The need to ensure the most effective utilisation of staff is still considered the most important justification for investment in training. But other factors, such as the need to improve market share, facilitate product innovation and development and the need to secure and retain an international quality standard are also significant drivers of training activity.

Some 79 per cent of establishments now have a specific training and development budget, primarily determined at board or corporate headquarters level within the organisation.

The survey found strong evidence of the contracting out of training and development activities, with providers external to the establishment undertaking more than half of all training.

The extent of sub-contracting varied between job categories, with 85 per cent of senior management, 73 per cent of professional/ technical, 63 per cent of craft/ technical and 62 per cent of supervisory training being contracted out.

In general, those surveyed considered job-based and one-to-one type training methods to be the most effective.

"Action learning type activities, coaching/mentoring, on-the-job instruction and face-to-face training were considered significantly most effective training methods when compared to technology-based methods," the report said.

Looking ahead, few establishments envisage any significant decrease in investment in training and development over the next 12 months, while 40 per cent of those surveyed expect to increase their spending. However, the survey was carried out between September and December 2000, and economic circumstances have since changed for the worse.

But the report points to the benefits of continuing to invest in training and development, even when times are tough.

"There is evidence to suggest that where establishments sustain and increase investment in training and development during times of economic downturn, they are better positioned to manage the downturn and remain competitive," the report said.

A total of 221 establishments, employing 750,000 people across a range of sectors, responded to the survey, which was carried out by the University of Limerick. The full details will be released at a CIPD conference, organised in association with The Irish Times, next Tuesday.