9th Annual State of the South African

L&D Industry Report 2012

Marius Meyer & Guy Blackbeard

7 March 2013

@SABPP1

Thanks to our Researcher

Penny Abbott, Head of HR Research Initiative

of SABPP

South African challenges

1. World competitiveness ratings

2. Unemployment

3. Arab Spring

World Competitiveness

Rating- IMD

Countries 2011 2012

B 44 46 -2

R 49 48 +1

I 32 35 -3

C 19 23 -4

S 54 50 +4

329 CRITERIA

Top 3 – 1. Hong Kong 2. U.S.A 3. Switzerland

How we’ll fix SA National Development Plan

Vision - 58million people in 2030

- an economy 3 times larger

- unemployment reduced to 6%

- nobody living below the national poverty line

- inequality significantly reduced.

Endorsed - by all political parties represented in parliament

- by cabinet

- private sector

- civil society.

Action - economic growth of at least 5% per annum over the next 18 years

- existing businesses double in size over the next 18 years

- new legislation to encourage entrepreneurs(lower costs at doing business)

- growth in infrastructure

- electricity & water availability and at reduced rates

- raise the quality of education and training

- affordable health care for all.

Top 10 HR priorities

1. Creating a high performance culture / climate

2. Leadership and management development

3. Skills development

4. Focus on corporate values, ethics

5. Industrial/employee relations

6. Customer service

7. Employee engagement

8. Change Management

9. Crafting and implementing HR strategy

10. HR policies and procedures

HR Survey 2011

Top 10 training programmes

1. Employee induction

2. Customer service

3. Leadership/Management

4. Safety

5. Product Knowledge

6. Performance management

7. New Equipment Orientation

8. Learnerships

9. Strategic Planning

10. Process/Quality Improvement

SCARCE AND CRITICAL SKILLS

Pos. Type of scarce and critical skills area Magnitude of scarcity

1 Industrial & Mechanical Engineers and Technologists 12 665

2 Medical Technicians 10 000

3 Training & development professionals 9 260

4 Metal fitters & machinists 8 340

5 Specialist managers 6 955

6 Agriculture & forestry scientists 6 175

7 Chemistry, food & beverage technicians 6 145

8 Electrical Engineering, draft persons & technicians 5 145

9 Social workers 5 000

9 Medical and laboratory scientists & technologists 5 000

10 Motor mechanics 4 205

11 Structural steel & welding trade workers 4 045

11 Advertising, marketing & sales managers 4 045

12 Civil engineering, draft persons & technicians 3 960

13 HR Professionals 3 855

14 Advertising, marketing & sales professionals 3 095

15 Production & operations managers 3 130 (DHET, 2011)

A.S.T.D Workplace Learning and Performance

Competency Model and Certification

New ASTD Competency

Model

Purpose of the Research

Information about state of the HRD

trends and benchmarks

Benchmark internal practices with other companies

Benchmark internal practices with international companies

Provide guidelines to improve HRD practices

Methodology

• Questionnaires electronically distributed to L&D managers.

• Data analysis of results.

• Comparison with 2003-2011 studies and international

benchmarks where possible.

Highlights over last 9 years

• Good track record: 2003 – 2012

• International and local credibility (ASTD)

• Triple publication model – report, articles,

books + conference papers

• Strong academic support – Unisa, NMMU,

NWU, UJ, VUT

• Annual trends & benchmarks – good multi-

year data for comparisons (facts vs fads)

Respondents

Years of experience in L&D

Highest qualifications

Sample

Agriseta 5%

Bank SETA 9%

CETA 7%

CHIETA 5%

Energy & Water SETA 5%

ETDP 14%

FASSET 2%

FOOD BEV SETA 5%

HWSETA 2%

INSETA 2%

MERSETA 12%

MICT SETA 7%

MQA 7%

PSETA 2%

SASSETA 2% SERVICES SETA

7%

TETA 7%

16 of the 21 SETA’s covered

Size of companies

Less than 100 14%

100 - 999 42%

1000 - 1999 10%

2000 - 4999 15%

5000 - 9999 4%

10000 and over 15%

Provincial breakdown

83%

0%

0%

2% 3%

7%

5%

0%

Gauteng WC EC NC FS L M NW

Training spend increasing

3.43

3.13

3.6

3.11

3.94

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2007 2008 2009 2010 2011

International benchmarks

Use of HRIS

0

10

20

30

40

50

60

70

80

90

100

2007

2008

2009

2010

2011

Comfort zone challenged

Knowledge management

(Managing organisational knowledge)

• 75% of respondents would like to be better trained

in knowledge management and learning

organisation concepts

• Formal knowledge management initiatives only

exist in about half the organisations, and that

• Around 30% of organisations use their HRIS for

knowledge management functions

Training needs analysis methods

(Improving human performance)

0

10

20

30

40

50

60

70

80

90

Questionnaires Focus Groups PerformanceManagement Data

Interviews Customer Complaints Other

2007 2008 2009 2010 2011

Correlation between popularity

and importance = 0.678 Training programmes provided % of respondents

who provide these

programmes 2011

Employee Induction 85.7

Computer/IT skills 83.7

Leadership/Management 81.6

Product Knowledge 75.5

Safety 75.5

Learnerships 71.4

Financial Skills 69.3

AIDS Awareness 65.3

Performance Management 63.3

Project Management 63.3

Strategic Planning 61.2

Wellness 61.2

New Equipment Operation 49.0

Professional Development 49.0

Team Building 49.0

ABET 46.9

Sexual Harassment 44.9

Teamwork 44.9

Diversity 42.9

Outplacement/Retirement 40.8

Basic Life/Work Skills 30.6

Creativity 26.5

Self-Directed Learning Skills 26.5

Foreign/Other Languages 18.4

Training importance 2010

20

10

Ran

k

2011

20

11

Ran

k

Change

in

ranking

Product Knowledge 4.2 5 4.6 1

Process/Quality Improvement 3.9 10 4.6 1

New Equipment Operation 4 7 4.6 1

Employee Induction 4.5 1 4.5 4

Safety 4.2 4 4.5 4

Customer Service 4.3 2 4.4 6

Leadership/Management 4.2 3 4.3 7

Performance Management 4.1 6 4.3 7

Ethics 3.8 4.3 7

Recruitment and Selection 3.9 4.2 10

More outsourcing of training

2007 20082009

20102011

47 46 47 48 39

53 54 53 52 62

Delivered internally Delivered externally

Training delivery methods

0

10

20

30

40

50

60

70

Classroom Text based Video based E-learning CD-Rom Satellite Webinars Blendedlearning

2007

2008

2009

2010

2011

43% of organisations use e-learning

E-learning content

0

10

20

30

40

50

60

70

80

90

IT Soft skills Technical skills Industry specific Managerial Languages Other

2007

2008

2009

2010

2011

We are changing with technology

The Evaluation of Training

Level Measurement Focus

1. Reaction & Planned Action Measures participant

satisfaction with the programme

and captures planned actions

2. Learning Measures changes in

knowledge, skills, and attitudes

3. Application Measures changes in on-the-job

behavior

4. Business Impact Measures changes in business

impact variables

5. Return on Investment Compare programme benefits

to the costs

Jack Phillips – Evaluation Levels

Evaluation

57 51

39 44

39

Chain of Value of Customer Frequency Difficulty of

Impact Information Focus of Use Assessment

Reaction Lowest Consumer Frequent Easy

(Learner)

Learning

Application

Impact

ROI Highest Client Infrequent Difficult

(Sponsor)

Characteristics of Evaluation Levels

Use of Evaluation at Each

Level

Sugrue & Rivera

Level 1, Reaction

91.3%

Level 2, Learning

53.9%

Level 3, Application

22.9%

Level 4, Impact

7.6%

Level 5, ROI

2.1%

Levels Target USA Target SA

Level 1 – Reaction

100% 100%

Level 2 – Learning

50% 100%

Level 3 – Job Application

30% 100%

Level 4 – Business Results

20% 20%

Level 5 – ROI

10% 10%

Evaluation Targets

1. Reaction & Planned Action 20% 20%

2. Learning 20% 40%

3. Application 20% 60%

4. Business impact 20% 80%

5. Return on Investment 20% 100%

Levels Usefulness Effectiveness rating

Evaluation Levels outcomes

Training evaluation - use of

ROI

0 10 20 30 40 50 60 70 80 90 100

We use specific software to assist in the ROI process

We ask Training Providers to supply us with ROI data or information ontheir training programmes

Our training staff have formal training in ROI processes

We calculate the financial value ROI for training programmes ourselves

We use ROI data when compiling training budgets for the following year

Our Training Reports to management include ROI figures

We calculate ALL the inputs costs of training programmes

We do pre- and post-assessments of training programmes to enable usto calculate the ROI

2011

2010

2009

2008

2007

L&D Trends

(Managing the training function)

Talent Management

• 60% of organisations have a formal talent

management strategy

• Less than half of these (46%) rate their

strategy as effective

Purpose of coaching

Skills transfer (task related, technical skills)

40%

Performance improvement

25%

Behavioural change 17%

Individual transformation

(identity, meaning, career etc.)

18%

45% of organisations use coaching to support TM strategy

Basis for mentoring

Performance management processes

15%

Personal development plans 16%

Strategic skills development needs 16%

Business strategic needs 13%

Leadership competency model 11%

Skills audits 11%

Organisation culture needs 11%

Knowledge management model

7%

Key findings

1. Average training spend 3.94% of payroll on training (3.11% in 2010 and 3.6%

in 2009).

2. Over 95% of organisations have a computerised human resource information

system (HRIS) in place and use it for a variety of functions. (91% in 2009)

3. Training needs analyses are conducted using mainly performance

management data (68.9%), data from customer complaints (57.8%) and

interviews (40%).

4. The use of questionnaires for training needs analysis has dropped

considerably from 78% to 46.7%.

5. Outsourcing of training design and delivery continues to increase – 64% of

training is designed externally on average and 62% is delivery externally on

average.

6. Classroom learning continues to be the most popular training delivery method

(59%) with e-learning second at 20%.

Key findings (continued)

7. 45% of organisations evaluate at least some of their training using financial

ROI. (39% last year and 40% the year before). Most organisations (70%) use

between 2 and 4 of the Kirkpatrick levels in evaluating training.

8. 60% of organisations have adopted a formal talent management strategy. This

is also an increasing trend (53% last year and 49% the year before). These

strategies are rated Effective or Highly Effective by 46% of organisations (51%

last year).

9. 45% of organisation use coaching in support of their talent management

strategy. The same percentage use mentoring and 90% of those organisations

use both coaching and mentoring. Coaching seems to be regarded as more

effective than mentoring. Coaching is most often delivered by line managers,

while the use of external coaches is still not prevalent (13 – 15%).

Opportunities

• Redesigned questionnaire

• A stronger model of collaboration + independence

(ASTD/SABPP/NWU)

• Linking the study to a professional qualification (NWU)

• Broaden scope – SETA involvement

• Bridging the research-practice gap

• Multiple studies on trends (Masters and PhD)

• Supplementing the results with case studies (CIPD

model)

• Awards for best practices (ASTD/SABPP)

• Marketing, publicity, impact – NSDS III

A new tripartite relationship

Future opportunities for

delegates 1. Participant – complete the questionnaire

2. Champion – join the design team

3. Social partner – retweet the results

4. Sponsor – add your brand to the study

5. Researcher – do post graduate study

6. Implementer – contextualise and apply at

your company

Connect with us – hrri@sabpp.co.za (Dr Penny Abbott)

Conclusion

We have made some progress on L&D

benchmarks in South Africa, but perhaps we

need some more focused work in elevating

the status and impact of learning. L&D in

South Africa compares well with international

norms.

Contact us on hrri@sabpp.co.za to participate in 2013 study.

Visit SABPP or ASTD exhibitions for 2012 report.