According to a new survey carried out by Antal Russia recruitment company, 36 percent of managers regard training and educational programs as a major incentive when accepting job offers. Respondents said that 8 percent of them would prefer their employer to focus such programs on the teaching of a foreign language, while 7 percent said that they would prefer to receive an MBA.
The crisis, however, has led companies to drastically reduce their outgoings, and one of the budget items hardest hit is spending on personnel development. Employers have been quick to save money on educational programs.
Experts from the Vlerick Leuven Gent Management School note a significant decrease in the number of students getting their MBAs paid for by their employers. This is especially noticeable among part-time MBA students who are attempting to obtain their degrees without taking a break from their careers.
Similarly, in the wake of the crisis, language courses are no longer obligatory or even a priority. During the last year, the Extra Class Language Center has lost four large companies whose employees previously studied foreign languages.
“Some companies even drop language courses for their employees before dropping corporate events,” said Stanislav Chernyshov, director of the Extra Class Language Center.
“Since the beginning of this crisis we have seen some major multinationals pulling out their expatriate staff at very short notice,” said Walter Denz, co-founder of the Liden & Denz language center. “Some students came in and told their teachers that this was their last lesson and that they were being sent home the next day.”
With the coming of the crisis, the situation on the labor market has changed considerably, mostly to the advantage of employers, according to experts from Manpower CIS. And this, first and foremost, is reflected in the corporate training sector. Previously, educational programs such as MBAs and language or computer courses were, primarily, a resource for corporate growth. Companies with an interest in their own development organized the training of their employees.
“Today, companies can cut expenditure on educational programs, as a great number of candidates have appeared on the market with good experience and qualifications,” said Denis Gorbatyuk, director of the St. Petersburg office of Manpower CIS.
“Now, one can pick and choose and the company can hire qualified professionals for salaries that aren’t excessively high.”
Companies now need people who can quickly make the right decisions in unstable times of stress, according to the experts at Manpower CIS. The provision of new knowledge or skills is not simply a matter of prestige or a bonus for employees anymore. It is a necessity, with educational programs having become resources for personal and professional development.
“People are starting to invest in themselves and in their education in an attempt to improve their competitiveness on the labor market. Employees need to meet the demands of the modern market,” said Gorbatyuk.
“This tendency has been observed by our experts as they look through hundreds of resumes every day. There are more candidates who are getting a second or even third higher education, or studying a third foreign language,” he said.
Instead of corporate clients, language courses now have more individuals who are ready to pay for themselves.
“They regard studying a foreign language as a good opportunity to get a job at a foreign company in Russia. It also helps employees to keep their jobs and avoid being made redundant,” said Chernyshov.
Budget cuts in this sphere can be a source of controversy. If languages are essential in order for the company to function, reducing or doing away with language education programs for employees can be a mistake.
“Employers often think that they can get by with the services of interpreters,” said Chernyshov. “Yet that takes up a lot of time. Moreover, the quality of their translations isn’t high enough nowadays. This profession demands a good education, painstaking work and talent, but it is very poorly paid. Most people who work as interpreters or translators are not professionals,” he added.
“At the same time, there has also been widespread application of a new approach, whereby employees, especially from provincial cities, are enrolled on foreign language courses as a bonus for good work. It’s an opportunity to visit St. Petersburg and also to study a language.”
Language training and educational programs are often regarded as part of the “social package” offered and are a good opportunity for both employees and employers alike.
“I think educational programs differ from other benefits. They unite staff and are excellent for team-building,” said Chernyshov.
Despite the general trend observed, there are organizations that have not cut back on educational programs. This is predominantly the case with international firms.
“Companies which have maintained stable positions continue to spend money on training and development, especially where it concerns those employees who are responsible for bringing in money, such as sales managers, for example,” said Galina Nemtchenko, partner at Antal Russia.
On the up are bookings from NGOs, embassies, consulates and other governmental organizations that have not been hit as hard by the crisis, says Denz.
“The corporate segment has really suffered, demand has fallen by over 40 percent, but the private segment, as a tool for training, has really been winning out,” said Gorbatyuk.
By Olga Kalashnikova
