IT IS BETTER TO TRAIN OLD EMPLOYEES THAN TO RECRUIT NEW ONES, Valeria Kushchuk

Russian companies are ready to invest in business education of their employees now
While experts forecast the end of the system of traditional education several trends are growing in the world. Educational programs migrate to the Internet, big corporations sponsor schools and universities and corporate education develops. Profile.ru asked five experts occupied with training of employees of companies how this segment developed in Russia and what the companies ready to invest in it wished.
Elena Lobanova, dean of Higher School of Finance and Management
Corporate education is very popular in the world and is less popular in Russia although in the last ten years it has been very much developed in our country too. Practically all developing companies try to teach their employees. Most often, they pay for education fully.
All enterprises strive for stability in development, moreover, they expect that they will be able to achieve high speed of growth. This is possible only when employees have high-quality education.
There are no and cannot be any standard industry corporate programs. General educational institution should obligatorily study specific of a company and develop an educational program specifically for it. In general, content of the educational program changes practically annually.
In work with a corporate client it is the best to combine modular or flickering (several days in succession per month) form of education with remote education because mixed teaching is very efficient.
For our clients there is a big risk that a specialist who has been taught at their expense will go to another company for bigger salary. After the employees have received education and, what is the most important, certificates they, as a rule, look for and find a new job. This is one of the reasons for development of corporate education in the framework of which certificates are not given and employees remain in the company.
The main criterion that will help companies to choose an educational institution for its employees is international accreditation of programs, for example, EPAS(EFMD) and AMBA.
Alexander Chekansky, dean of the department of management of IBS RANEPA
I will single out two key advantages of our programs. First, this is unique teaching team that includes the best lecturers, business coaches and practical specialists from various regions of Russia, Kiev and Minsk. Second, this is adapting nature of corporate programs. Even standard courses and disciplines like marketing, finance, HR management and strategy in any program are based on materials of the customer taking into account specific of his activity.
The biggest effect is provided by education that combines methods of full-time and online education. Online technologies have an indisputable advantage in mastering of the theoretical base and passing of final tests. Training methods, collective analysis of business cases and exchange of managerial experience in the course of discussion of problems without which education of manager is unthinkable require lessons in presence.
Companies always have a risk that a specialist trained at their expense may go to another company. That task is reduction of the risk. Some companies sign contracts with employees on return of money for education in case of departure from the company in the next two or three years after graduation from a program. However, legality of such contracts causes doubts of lawyers. Companies that order corporate MBA or professional retraining programs often set a condition that graduates of a program will not receive a normal certificate. The customer says, "We need to improve qualification of our employees and we do not need certificate that increases their value on the labor market."
Special courses of increasing of loyalty to the employer are hardly necessary. It is increased by the mere fact that an employee has been sent to get education that helps his professional growth.
Anna Terkina, director of the corporate and innovative programs center of business university Mirbis
Today, corporate education is an international trend. In the contemporary society in which knowledge gets outmoded as quickly as technologies education becomes a permanent process. Ignoring this fact means limiting development of your business deliberately.
Whereas a few years ago it has been acceptable to have one or two business coaches in the staff, now we see growth of corporate universities with staff lecturers, coaches and tutors.
A wish to give business education to your employees always has a complex of reasons. This is fulfillment of certain business tasks, need for professional growth of the staff, wish "to speak the same language," team formation and close-knitting of the staff and need to break stereotype approaches.
An employee chooses a company where he is allowed to grow professionally fairly often and does not abandon it in pursuit of higher salary in another place. At present, motivation by education is not inferior to material motivation. This is especially important for employees of generation Y for which corporate culture and interest in work are more important than the salary.
If we speak about the format of education, the most efficient are programs of mixed format that consist of classroom modules with business simultaneously, virtual classroom, practice or practical classes at production facilities and independent work. It is possible to use such format when employees of a company are very busy and they can be separated from work and go classes for a long time.
Yevgeny Terukov, director of corporate programs of Stockholm School of Economics Russia
The market of corporate education in the world is currently in search for new formats and forms of interaction with companies. This circumstance is reflected on the volume of the market that decreases in traditional segments (academic programs) and is growth in the new ones (for instance, online education, project approach and coaching). Corporate education in Russia follows international trends in many aspects with delay of three to five years. Corporate universities were very popular in Europe in the early 2000s, in Russia they started developing in the middle of the 2000s and reached a peak between 2011 and 2013. The idea of corporate universities is not so popular in Europe now and we expect a similar trend in Russia.
Volume of the market of corporate education in Russia is associated mostly with economic cycles because budgets for education are the first to be cut back during a crisis. In the world this trend was reversed during the crisis of 208 because it was more logical to train loyal employees in difficult years of company's existence and not in the "fat" ones. We hope that in Russia this connection will also be broken in 2014 that will be difficult for the economy.
Majority of companies pay for 100% of education. From the standpoint of industries a lot is traditionally invested in education by pharmaceutical, oil and gas and industrial companies, banks and players of the infrastructure industry. In our opinion, companies of retail sector and producers of consumer goods underestimate capabilities of business education and focus on training of skills. Along with this, we see growth of interest in our programs on their part.
If we sum up, companies pursue three goals during ordering of programs. First, this is development of managerial skills and knowledge. Chair of one of the banks formulated it the best of all, "I do not need people with baggage of knowledge. I need people who can achieve the ambitious goals set for them." Second, this is broadening of the horizon, enabling of participants to see business of the company as a whole but to retain connection with realities of their activity and areas of responsibility in the company. The third goal is development of cross-functional interaction and preserving of loyalty to the company. Motivating effect is always important in any corporate program.
Full-time or online education or combination of these two methods is preferred in work with the corporate client. Combination of formats is always preferred because this allows using the potential of participants to the maximal extent. It is not which format is used more or less that is important but the way in which they are interconnected.
If during a program participants discuss cases from their professional life, analyze strategy of a company or develop an innovative business model for their unit, this cannot be viewed as "loss" of working time. We stick to the concept of "included education" unlike the approach with use of outside cases.
There are three main criteria for selection of an educational institution for the employees and all the rest are their derivatives. This is a list of corporate clients and presence of repeated programs with them, recommendations of graduates and customers, participation in international ratings and accreditations.
Svetlana Korobeinikova, head of corporate educational programs of Graduate School of Management RANEPA
Corporate education is fairly widespread both in Russia and in the world. But, as a rule, this is applicable to big corporation that have the planned articles of expenses on staff development. Practically every big company has a corporate university or an educational center in its structure where the process of education of the staff is planned and organized.
In medium business the situation is different, personality of the head or his first deputies plays a significant role in initiation of processes of corporate education there. If the manager learns permanently and understands a need of being "in the trend," seeing the prospects for development of business, market, society and science he comes to understanding of a need for participation of the company in development of employees quickly.
The most serious question in such companies is whom to teach and selection determines result of the education to a big extent. We have often encountered a situation when a company pays 100% of costs of a program that is formed on a high level but motivation of employees is insufficient: there is no possibility of career growth, result of the education is not acceptable in practice and procedure of evaluation of results of the education is formal.
Most often, companies that organize corporate education in the field of business education stand on the threshold of big-scale changes and clear understanding that available competences, knowledge and skills of the managerial team will be insufficient in new conditions is coming to them.
Educational institutions are simply obliged to prepare unique special proposals for corporate clients. There is no need for standard courses oriented at faceless or universal cases in companies. Along with this, it is necessary to bear in mind the industry specific, the regional and the national peculiarities of running business.
Proposal of corporate programs should be obligatorily accompanied with preliminary diagnosis of a business object, revealing of important tasks and key problems. This is not simply an education, this is diagnosis-education-monitoring and even consulting.
It is impossible to use only the remote format of education with corporate clients. Combination of meetings in presence and working out of certain skills in the online mode is definitely necessary. Online education allows using of working time in the most efficient way and fulfilling of tasks at a time convenient for the employee. The format of long weekend (Friday-Saturday-Sunday) is, in my opinion, the most convenient for lessons in presence.
Corporate education may be organized with high quality by an educational institution that, first, has experience of implementation of such programs and, second, that is occupied with its own development permanently, that broadens the range of offered programs, that uses modern technologies, studies advanced foreign experience and pay much attention to formation of a decent image on the market of educational services, which is reflected in the ratings and results of polls.
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Expert
Elena Lobanova, doctor of economic sciences, professor, deputy head of the department of financial management, managerial accounting and international standards of financial activity, dean of Higher School of Finance and Management
"Business education gives new leaders-managers to companies"
"Development of corporate education requires protection because it is often accused of primitivism. However, it is wrong to opposite two kinds of education: corporate and traditional business education that has been developing successfully in the world for a very long time already. They should supplement each other. Along with this, corporate and business education fulfill their own tasks. Corporate education evidently has applied and moreover pragmatic nature. It fulfills tasks of today that companies face. Corporate education consists of education of small groups of people and departments. It may involve significant quantity of employees of a company if, for example, the matter is about restructuring, merger or modernization. On the other hand, traditional business education on the basis of schools of business behind which universities are standing in majority of cases is not adjusted to fulfillment of certain tasks. This is its drawback and huge advantage. Business education is aimed at training of professionals of the highest international level (for example, with assistance of specialized master programs) and, what is the most important, at formation of leaders-managers who can lead projects, programs and gigantic transnational corporations. In this sense business education has an obvious individualized nature. And companies will always send their leaders to study to business schools.
We have School of financial director, MBA "Finance" and EMBA "Strategic finance" programs. We have conducted them for 20 years already. The entire staff of managers in the field of finance of majority of Russian companies, well known and not very well known including their financial directors passed through our school. Along with this, when problem of deep transformation of functions of financial services of the company became pressing list year there appeared a task of development of corporate programs of education in work with international financial accounting (IFRS), finance management, managerial accounting and corporate finance. We have already started fulfillment of this task and we will get serious corporate orders for teaching of modern financial algorithms adapted to needs of certain companies."

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