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EMPLOYER SUPPORTED TRAINING 2005























Manpower Research and Statistics Department Singapore August 2006

C OPYRIGHT N OTICE Brief extracts from the report may be reproduced for non-
commercial use provided the source is acknowledged; requests for
extensive reproduction should be made to: Director
Manpower Research and Statistics Department
Ministry of Manpower
18 Havelock Road #06-02
Singapore 059764 Fax : 6317 1804
Email : mom_rsd@mom.gov.sg
Statistical activities conducted by the Manpower Research and
Statistics Department are governed by the provisions of the
Statistics Act (Chapter 317). The Act guarantees the
confidentiality of information collected from individuals and
companies. It spells out the legislative authority and responsibility
of the Director, Manpower Research and Statistics Department.



CONTENTS


HIGHLIGHTS
1 INTRODUCTION…………………………………………………………… 1 2 PROVISION OF TRAINING………………………………………………... 1 3 TRAINING EXPENDITURE BY EMPLOYER……………………………. 6 4 IMPACT OF TRAINING…………………………………………………… 7 5 TRAINING AREAS & ARRANGEMENTS……………………………….. 9 6 TRAINING SUPPORT……………………………………………………… 18 7 CONCLUDING REMARKS………………………………………………… 21
ANNEX 1 - TABLES
APPENDIX I - SURVEY COVERAGE AND METHODOLOGY Page
• In line with upbeat economic conditions, the proportion of private sector
establishments that provided structured training for at least some of their employees
rose by 5% point over the year to 72% in 2005, the highest reached since data
collection started in 2002. • Employers also trained a higher proportion of blue collar workers; although this is still
less than the training given to professionals, managers, executives & technicians
(PMET). In 2005, training-providing establishments sent some 60% of their PMET
staff for structured training, followed by 54% for production, cleaning & related
workers and 53% for clerical, sales & service workers. • Larger establishments were more likely to provide training than those smaller. Nearly
all (96%) establishments with 250 & more employees sent their staff for structured
training, compared to just 66% for establishments with 25-99 employees. • Training provision varied substantially across industries. Insurance (100%),
telecommunications (100%), health & social services (97%), hotels (91%)
architectural & engineering services (89%) and financial institutions (87%) continued
to post high training participation, reflecting a strong need for knowledge and skills to
be updated. At the other end of the spectrum, training participation for restaurants
(35%) and retail trade (57%) remained below the norm (72%); although they showed
an improvement from the year before. • Employers were more likely to send their staff for training to acquire occupational or
job-specific (75%) rather than industry (40%) skills. In respect of generic &
employability skills, training in workplace safety & health (59%) were more common
than training in information communications technology (32%) and other generic &
employability skills e.g. personal effectiveness, initiative & enterprise (30%).
Training in workplace literacy & numeracy was the least widespread at 13%. • Establishments that provided structured training spent an average of $542 per
employee in 2005 which is more than the $511 in 2004. However, training
expenditure as a percentage of total payroll (comprising staff remuneration and
employers’ CPF contribution) maintained at 1.3%. After deducting costs recovered
from training incentive schemes such as the Skills Development Fund (SDF), the net
training cost amounted to $505 per employee or 1.2% of total payroll in 2005. • Generally, employers reported tangible benefits from training their employees,
especially in terms of the impact on productivity (84% indicated positive impact),
products/services quality (82%) and customer satisfaction (73%). The bulk (76%) of
the training-providing establishments indicated that employees who undergo training
would be given more job responsibilities. When asked about the impact of training on
promotion opportunities and wages/earnings, the establishments were broadly divided
between those which felt training had a positive impact and those which indicated no
impact. HIGHLIGHTS Manpower Research & Statistics Department, Ministry of Manpower 1 Employer Supported Training, 2005
1 INTRODUCTION

1.1 Much of the usable labour market skills which workers possess are acquired through training they receive in their jobs. Training needs within the
workplace are often met through the provision of structured training where training
activities have a specified content or predetermined plan e.g. class-room based course
or structured on-the-job training. There is also the unstructured training which may
occur informally e.g. when less experienced workers acquire new skills by simply
observing more skilled workers at work or engaging in informal conversations during
coffee breaks.

1.2 This report examines the provision of structured training 1 during January to December 2005 by private sector establishments each employing at least
25 workers. Employers’ expenditure on training and its impact are also examined.
The data are obtained from the Survey on Employer Supported Training, 2005 carried
out from March to June 2006. The survey coverage and methodology are explained
in Appendix 1.


2 PROVISION OF TRAINING
2.1 Amid a buoyant economy, more employers sent their staff for training in 2005. The proportion of establishments that provided structured training for at
least some of their employees rose by 5% point over the year to 72%, the highest
reached since data collection started in 2002. 1 Structured training refers to training in which the learning experience is under the direction of a teacher/lecturer/course supervisor and organised in a progressive sequence. It includes classroom training, private
lessons, correspondence course, workshops, seminars, structured on-the-job training and apprenticeship, but
excludes informal on-the-job training such as watching a video on management skills, observing others perform a
task at work, time spent at work learning new tasks, keeping up to date with work-related developments by reading
journals/newspapers and informal discussions. Manpower Research & Statistics Department, Ministry of Manpower 2

















By Industry

2.2 Training provision varied substantially across industries. Insurance (100%), telecommunications (100%), health & social services (97%), hotels (91%)
architectural & engineering services (89%) and financial institutions (87%) continued
to post high training participation, reflecting a strong need for knowledge and skills to
be updated e.g. employees in banking and insurance required continual training on
new product launches. Construction saw a 10% point jump in training incidence, as
more establishments in the industry sent their employees for mandatory safety
orientation courses. At the other end of the spectrum, training participation in
restaurants (35%) and retail trade (57%) remained below the norm (72%), although
they showed an improvement from the year before (Annex 1 – Table 1). Both
industries typically have a heavy reliance on part-timers and/or temporary workers.


By Establishment Size

2.3 Large establishments were more likely to provide training than those smaller. Nearly all (96%) establishments with 250 & more employees sent their staff
for training, compared to just 66% for establishments with 25-99 employees (Chart 2).
The larger establishments are more likely to have in place a human resources
department and formal training policies. Having a larger pool of workers also
facilitates coverage of duties when an employee is away on training.
72% 28% 67% 69% 52% 34% 32% 48% 2002 2003 2004 2005 Provided T raining D id N ot Provide T raining Note: Based on all establishments surveyed. CHART 1: PROVISION OF STRUCTURED TRAINING AMONG ESTABLISHMENTS 2002 - 2005 Manpower Research & Statistics Department, Ministry of Manpower 3


















By Occupational Group

2.4 On average, a higher proportion of professionals, managers, executives & technicians (PMETs) had undergone training relative to other occupations. In
2005, training-providing establishments sent some 60% of their PMETs for structured
training, followed by 54% for production & related workers and 53% for clerical,
sales & service workers. While the other broad occupational groupings posted slight declines, production & related workers saw a jump in their training incidence of
nearly 6 % points in 2005. Consequently, the gap in training incidence between
production & related workers and PMETs/clerical, sales & service workers has
narrowed after widening in 2004.












2.5 The provision of structured training for the main occupational groups differed across the industries. For instance, industries with emphasis on front-line
customer service such as hotels and retail trade sent a higher proportion of their sales
& services workers for training relative to other occupational groups. In contrast, 2003 2004 2005 Overall 51.4 54.6 55.9 Professionals, Managers, Executives & Technicians 56.1 60.2 59.7 Clerical, Sales & Service Workers 51.7 56.4 53.1 Production, Cleaning & Related Workers 47.4 48.3 54.2 TABLE 1: PROPORTION (%) OF EMPLOYEES SENT FOR STRUCTURED TRAINING BY MAIN OCCUPATIONAL GROUPS, 2003 - 2005 Overall 68.6 66.5 72.1 25-99 61.3 59.5 65.6 100-249 87.9 83.8 89.9 250 & above 96.5 95.0 96.0 2003 2004 2005 CHART 2: PROPORTION (%) OF TRAINING-PROVIDING ESTABLISHMENTS BY ESTABLISHMENT SIZE, 2003 - 2005 Note: Based on all establishments surveyed.
Notes: Based on establishments that provided their employees with structured training. Manpower Research & Statistics Department, Ministry of Manpower 4 industries with a concentration of higher skilled white collar employees, such as
financial services and legal, accounting & management services sent a higher
proportion of their PMETs for training. Details are in Annex 1 – Table 2.

Reasons for Providing Training

2.6 Employees were commonly sent for training to acquire skills directly related to their jobs. Close to 2 in 3 (or 64%) training-providing establishments sent
their employees for training in job-specific skills. More than half (59%) did so to
comply with regulatory/statutory requirements (with construction having the highest
proportion of training-providing establishments doing so), and improve
service/product quality. 47% of the establishments also gave productivity
improvement as a reason for providing training. The less commonly cited reasons
were to improve generic/employability skills (28%), to cater for product/service
changes (32%) and promote career development (33%) of their employees.


























2.7 Improving job specific skills was the top consideration for all establishments across the size categories. While large establishments with 250 &
above employees were the most willing to train for every one of the reasons, the
differential was most pronounced for training that were directly in employee’s interest Notes:
(1) Based on establishments that provided their employees with training.
(2) The figures do not add up to 100% as establishments are allowed to indicate more than one reason. 0.4 27.5 31.5 33.1 35.0 38.3 47.3 58.5 59.3 64.1 Others To improve generic/employability skills To cater for prod/svc chges which require new skills To promote career development To meet changes in technology To help employees develop positive work attitudes/habits To improve productivity To improve product or service quality To meet regulatory/statutory requirements To improve job specific skills CHART 3: REASONS (%) FOR PROVIDING STRUCTURED TRAINING, 2005 Manpower Research & Statistics Department, Ministry of Manpower 5 e.g. to promote career development (59% compared to just 26% for establishments
with 25-99 employees). See Annex 1 – Table 3.

Reasons for Not Providing Training

2.8 Close to 3 in 10 establishments (28%) did not provide their employees with structured training. Consistent with previous year, the top two reasons they gave
for not sending their staff for training were that their employees’ current skills level
was sufficient (63%) and informal on-the-job training was adequate to meet business
needs (50%). With upbeat business conditions, training cost became less of a concern
- the proportion indicating budget constraint dropped from 31% in 2004 to 23% in
2005. Supply considerations such as lack of information about training courses
available (4.8%), lack of suitable training courses (10%), cost of training (9.5%) and
inability to assess the likely benefits of training (4.4%) posed less of a barrier to
training. A breakdown of the figures by establishment size is at Annex 1 – Table 4.



























Notes:
(1) Based on establishments that did not provide their employees with training.
(2) The figures do not add up to 100% as establishments are allowed to indicate more than one reason. 3.9 4.5 7.1 10.0 9.5 14.5 22.3 31.1 39.9 59.8 4.4 4.8 5.5 10.3 9.5 15.8 20.6 22.7 49.5 62.8 Unable to assess the likely benefits of training Lack of information about training courses Trained workers may leave or be poached by other companies Lack of suitable training courses Training courses too expensive Prefer to recruit new employees with required skills rather than train up existing ones Difficulties in releasing workers due to a lean workforce Budget is tight Informal on-the-job-training sufficient Current skills of employees are sufficient to meet business needs 2004 2005 CHART 4: REASONS (%) FOR NOT PROVIDING STRUCTURED TRAINING, 2004-2005 Manpower Research & Statistics Department, Ministry of Manpower 6 3 TRAINING EXPENDITURE BY EMPLOYER
3.1 Establishments were surveyed on the expenses 2 they incurred on staff training. Establishments that provided structured training spent an average of $967
per trainee or $542 per employee in 2005 3 . This is more than the $936 per trainee or $511 per employee in 2004. However, training expenditure as a percentage of total
payroll (comprising staff remuneration and employers’ CPF contribution) maintained
at 1.3% from 2004.

3.2 After taking into account training incentives such as those provided from the Skills Development Fund (SDF), establishments incurred a training
expenditure of $900 per trainee or $505 per employee. This net training cost formed
1.2% of total payroll, unchanged from 2004.
3.3 The training-providing establishments incurred an average of $1,111 per employee in training the PMETs. Training expenditure is significantly lower for
clerical, sales & service workers ($348) and production, cleaners & related workers
($149).




















2 Include course fees, cost of training materials, rental and imputed cost of premises/facilities for training purposes and wage cost of company’s in-house trainers but exclude wage cost of staff who
attended the training.
3 Training cost per employee is derived based on all employees regardless whether they had received training while training cost per trainee is derived based only on employees who had received training. CHART 5: AVERAGE TRAINING COST ($) PER EMPLOYEE BY OCCUPATIONAL GROUP, 2003-2005 Note: (1) Refers to the average training cost for training-providing establishments.
(2) Figures in ( ) refer to proportion of employees sent for structured training. (47.4%) 143 (51.7%) 381 (56.1%) 1,072 (51.4%) 538 (48.3%) 180 (56.4%) 364 (60.2%) 958 (54.6%) 511 (54.2%) 149 (53.1%) 348 (59.7%) 1,111 (55.9%) 542 Overall Professionals, Managers, Executives & T echnicians Clerical, Sales & Service Workers Production, Cleaning & Related Workers 2003 2004 2005 Manpower Research & Statistics Department, Ministry of Manpower 7 3.4 Large establishments spent more on training than those smaller. Training-providing establishments with 250 & above employees invested an average
of $710 per employee (or 1.6% of payroll), more than twice the $305 (0.8% of
payroll) for small establishments with 25-99 employees.

3.5 The transport & storage industry ($1,824) recorded the highest training expenses per employee, mainly due to the high training costs incurred by airline staff.
This was followed by other professional services ($1,282) including research &
development and advertising & market research. Despite having a high training
incidence, construction spent the least on training at $71 per employee (or 0.4% of
total payroll) – reflecting the relatively affordable fees for safety courses. Details are
at Annex 1 – Table 5.


4 IMPACT OF TRAINING
4.1 Establishments that provided staff training were asked to rate its impact on organizational performance indicators and employee’s career advancement.

Organisational Performance Indicators

4.2 On the whole, employers were able to achieve tangible benefits from training their employees. The vast majority of the training-providing establishments
indicated that training had a positive impact on worker productivity (84%), quality of
their products & services (82%) and customer satisfaction (73%).

4.3 For most establishments, engaging in training activities for their employees had no adverse impact on their bottom-line. Only a small minority
reported that training had a negative impact on business costs (6.1%). The majority
indicated either no impact (44%) or positive impact (35%). In fact, close to half of
the training-providing establishments felt that training had a positive impact on their
sales & profitability (49%).

4.4 Establishments were divided in their responses on the impact of training on staff retention and innovation. 46% felt training helped in retaining their
staff, while 44% indicated it did not have any impact. In terms of innovation, 37%
reported that training had a positive impact, while 45% were indifferent and 17%
indicated they did not know. Manpower Research & Statistics Department, Ministry of Manpower 8





























Career Advancement Indicators

4.5 The bulk (76%) of the training-providing establishments indicated that employees who undergo training would be given more job responsibilities. When
asked about the impact of training on promotion opportunities and wages/earnings,
the establishments were broadly divided between those which felt training had a
positive impact and those which indicated no impact.








CHART 6: IMPACT OF TRAINING (%) ON ORGANISATIONAL INDICATORS, 2005 Note: (1) Based on establishments that provided their employees with training and formally evaluated the effectiveness of training. (2) *Not applicable refer to responses given by non-profit organisations Work Productivity Quality of Products & Services Customer Satisfaction Sales & Profitability Staff Retention Innovation Business cost Not applicable* - - - 0.3 - - - Negative Impact - 0.2 0.1 0.6 1.6 0.2 6.1 Don't Know 3.6 4.4 8.3 13.5 8.6 17.2 14.6 No Impact 12.6 13.5 18.4 36.5 44.0 45.3 44.3 Positive Impact 83.8 81.8 73.2 49.2 45.9 37.3 35.0 Work Productivity Quality of Products & Services Customer Satisfaction Sales & Profitability Staff Retention Innovation Business cost Manpower Research & Statistics Department, Ministry of Manpower 9























5 TRAINING AREAS AND ARRANGEMENTS
Training Areas 4
5.1 Employers were more likely to send their staff for training to acquire occupational or job-specific (75%) rather than industry (40%) skills. In respect of
generic & employability skills, training in workplace safety & health (59%) were
more common than training in information communications technology (32%) and
other generic & employability skills e.g. personal effectiveness, initiative & enterprise
(30%). Training in workplace literacy & numeracy was the least widespread at 13%. 4 Analysis based on establishments that provided staff with training Note: Based on establishments that provided their employees with training and formally evaluated the effectiveness of training. CHART 7: IMPACT OF TRAINING (%) ON CAREER ADVANCEMENT INDICATORS, 2005 Job Responsibilities Promotion Opportunities Wage/Earnings Decrease 0.1 - - Don't Know 2.0 5.5 4.7 No Impact 21.4 44.7 49.2 Increase 76.4 49.8 46.2 Job Responsibilities Promotion Opportunities Wage/Earnings Manpower Research & Statistics Department, Ministry of Manpower 10






















5.2 While training in occupation or job specific skills was common across all occupational groups, other types of training varied according to occupations. For
instance, training in workplace safety & health was more common with production &
related workers while industry skills training was more commonly extended to
PMETs (Chart 9).
Note: (1) Based on establishments that provided their employees with training. (2) Figures do not add up to 100% as establishments are allowed to indicate more than one training area 12.9 30.4 32.1 40.1 58.5 74.5 Workplace Literacy & Numeracy Other Generic or Employability Skills Information Communications Technology Industry Skills Workplace Safety & Health Occupation or Job Specific Skills CHART 8: PROPORTION (%) OF TRAINING-PROVIDING ESTABLISHMENTS BY TRAINING AREAS, 2005 Manpower Research & Statistics Department, Ministry of Manpower 11




























5.3 The larger establishments were much more likely to provide structured training of any type than smaller establishments. This was especially the case for
training in generic & employability skills (Table 2). CHART 9: PROPORTION (%) OF ESTABLISHMENTS THAT SENT THEIR EMPLOYEES FOR TRAINING IN VARIOUS TRAINING AREAS BY OCCUPATIONAL GROUPS, 2005 Note: (1) Based on establishments that provided their employees with training. (2) Figures do not add up to 100% as establishments are allowed to indicate more than one training area 61.7 41.6 45.2 34.1 30.8 9.1 67.1 28.0 24.9 32.9 33.1 12.0 61.7 75.2 14.7 6.2 14.0 7.6 Occupational/Job Specific Skills Workplace Safety & Health Industry Skills Information Communications Technology Other Generic or Employability Skills Workplace Literacy & Numeracy PM ETs Clerical Production & Related Manpower Research & Statistics Department, Ministry of Manpower 12













Training Methods

5.4 The vast majority of training-providing establishments (82%) got external trainers to provide training to their employees. Other methods involved
using managers/supervisors (42%), internal/specialist training staff (28%) and other
staff (21%) to conduct training. Establishments also sent their staff for training
leading to either formalized certification (34%) and/or trade certificates (25%).
























Overall 25-99 100-249 250 & above Occupational or Job Specific Skills 74.5 70.8 79.6 87.5 Workplace Safety & Health 58.5 54.9 64.7 68.7 Industry Skills 40.1 34.4 49.0 58.4 Information Communications Technology 32.1 26.5 36.5 56.9 Other Generic or Employability Skills 30.4 25.8 35.4 49.2 Workplace Literacy & Numeracy 12.9 9.5 15.5 28.4 TABLE 2: PROPORTION (%) OF ESTABLISHMENTS THAT SENT THEIR EMPLOYEES FOR TRAINING IN VARIOUS TRAINING AREAS BY ESTABLISHMENT SIZE, 2005 Note: (1) Based on establishments that provided their employees with training.
(2) Figures do not add up to 100% as establishments are allowed to indicate more than one training area 81.5 42.1 33.6 28.4 25.4 21.2 1.2 External T rainers Managers/supervisors T raining leading to formalised certification Internal/specialist training staff T raining leading to trade certification Other staff in the organisation Others CHART 11: PROPORTION (%) OF TRAINING-PROVIDING ESTABLISHMENTS BY METHODS USED TO PROVIDE TRAINING, 2005 Note:
(1) Based on establishments that provided their employees with training.
(2) Figures do not add up to 100% as establishments are allowed to indicate more than one training provider
(3) Trade Certificates are awarded upon completion of training for skill sets e.g. safety orientation training. They are not formal qualifications (e.g. diploma, degree, post graduate degree and post graduate diploma). Manpower Research & Statistics Department, Ministry of Manpower 13 5.5 Across industries, construction was the least likely to get internal staff to train their employees. Instead, it relied mostly on external trainers (69%) and
sending workers for training leading to trade certifications (64%), the latter being the
highest recorded for any industry. Details are at Annex 1 – Table 6.


Training Administration

5.6 The proportion of training-providing establishments which assigned a senior manager to oversee their training activities (35%) remained broadly similar to
previous two years. A higher proportion of large establishments with 250 & above
employees (63%) assigned senior management to oversee their training activities
compared to smaller establishments.























5.7 Similarly, most of the larger establishments had a formal/ written training or staff development policy compared with smaller establishments (Chart 13).
30.1 35.3 28.8 41.2 63.2 36.5 29.6 43.2 64.3 37.9 68.3 45.6 Overall 25-99 100-249 250 & above 2003 2004 2005 CHART 12: PROPORTION (%) OF TRAINING-PROVIDING ESTABLISHMENTS THAT ASSIGN A MEMBER OF SENIOR MANAGEMENT TO OVERSEE TRAINING BY FIRM SIZE, 2003 - 2005 Note: Based on establishments that provided their employees with training. Manpower Research & Statistics Department, Ministry of Manpower 14




















5.8 Among the training-providing establishments that did not have a formal/written training or staff development policy, the majority (57%) indicated that
this was because training is provided on an ad-hoc basis when requested by the
employees or supervisors. About 1 in 4 (26%) of the establishments also indicated
that training is not integrated as it is decentralized to individual departments. Close to
2 in 10 reported that training is not their organization’s performance indicator, and/or
a lack of expertise and time in developing training/staff development policy. A
minority (12%) saw training as the responsibility of the individual employees that
should be undertaken in their own time. 43.7 34.1 56.4 76.4 45.5 36.5 55.9 78.0 44.0 35.4 55.2 75.1 Overall 25-99 100-249 250 & above 2003 2004 2005 CHART 13: PROPORTION (%) OF TRAINING-PROVIDING ESTABLISHMENTS THAT HAVE A FORMAL OR WRITTEN TRAINING POLICY FOR STAFF BY ESTABLISHMENT SIZE, 2003 - 2005 Note:
(1) Based on establishments that provided their employees with training. Manpower Research & Statistics Department, Ministry of Manpower 15


























Training Evaluation

5.9 There is a notable increase in the proportion of training-providing establishments that evaluated the effectiveness of staff training to 62% in 2005 from
56% in the previous 2 years. Expectedly, the larger establishments were more likely
to undertake training evaluation than those smaller. 12.7 17.9 17.9 18.3 24.5 57.0 9.5 16.7 19.0 23.1 24.7 55.8 17.8 18.7 19.1 26.3 56.8 12.4 Training is the responsibility of indivdual employees and they should undertake it at their own time Insufficient time to develop a training/staff development policy Insufficient expertise to develop a training/staff development policy Not an organisation performance indicator Training within the organisation is not integrated Training is provided only when requested by employees or supervisors 2003 2004 2005 CHART 14: REASONS (%) FOR NOT HAVING A FORMAL/WRITTEN TRAINING POLICY, 2003 - 2005 Notes:
(1) Based on training-providing establishments that do not have a formal/written training policy.
(2) Figures do not add up to 100% as establishments are allowed to indicate more than one reason. Manpower Research & Statistics Department, Ministry of Manpower 16





















5.10 Training-providing establishments that evaluated the training effectiveness were more likely to turn to their HR/Line managers for feedback (57%)
(Chart 16).
2003 55.7 49.0 63.0 80.7 2004 56.0 47.8 68.5 80.0 2005 62.2 55.9 71.2 83.8 Overall 25-99 100-249 250 & above CHART 15: PROPORTION (%) OF TRAINING-PROVIDING ESTABLISHMENTS THAT EVALUATED EFFECTIVENESS OF STAFF TRAINING, 2003 - 2005 Note: Based on establishments that provided their employees with training. Manpower Research & Statistics Department, Ministry of Manpower 17

























5.11 Among the training-providing establishments that did not have in place formal evaluation procedures on training, 48% felt this is not a priority. This was
followed by difficulties in obtaining reliable evaluation results (19%), time constraint
(18%) and not knowing how to evaluate the effectiveness of training (10%).
Establishments were less bothered about costs (2.4%) or that the evaluation could
generate resistance among employees (1.8%). CHART 16: COMMON EVALUATION PROCEDURES (%), 2004 - 2005 23.8 25.9 29.2 34.0 39.5 46.6 60.0 23.4 28.5 29.4 30.4 36.4 42.2 56.6 Using indicators of work improvement Getting customer feedback Carrying out tests to verify if skills have been acquired Requiring formal validation and certification of the skills required Measuring if new skills are applied at work Measuring the job satisfaction level of employees after training Getting feedback from HR/Line managers or supervisors 2004 2005 Notes:
(1) Based on training-providing establishments that have evaluation procedures in place.
(2) Figures do not add up to 100% as establishments are allowed to tick more than one evaluation procedure. Manpower Research & Statistics Department, Ministry of Manpower 18





















6 TRAINING SUPPORT
6.1 Along with the rise in training provision, the proportion of establishments that were supportive of their employees taking up self-initiated
training at their own time declined to 27% in 2005 from the previous year’s 30%. In
terms of employee count, the pool of workers also shrank from 5.2% to 4.8%. 1.6 2.4 11.2 20.0 20.2 43.0 1.8 2.4 10.1 18.6 18.4 48.1 It generates resistence among employees It is too expensive Not sure how to evaluate the effectiveness It is too difficult to obtain reliable evaluation results It is too time consuming It is not a priority 2004 2005 CHART 17: MAIN REASON (%) FOR NOT HAVING EVALUATION PROCEDURES, 2004 - 2005 Notes:
(1) Based on training-providing establishments that do not have training evaluation procedures in place.
(2) Establishments are allowed to indicate only one option. Manpower Research & Statistics Department, Ministry of Manpower 19























6.2 Consistent with previous years, the larger establishments were more inclined to provide support to employees for employee-initiated training undertaken at
the employees’ own time. However, in terms of employees who benefited from such
support, large establishments registered a lower proportion than smaller
establishments, partly reflecting their larger employee base (Chart 19). Also, as
nearly all large establishments provided their staff with some form of structured
training, proportionately fewer of their employees would find it necessary to initiate
and undertake their own training. 0 5 10 15 20 25 30 35 Proportion of
Establishments 30.1 29.8 26.8 Proportion of
employees who
benefitted in
establishments that
provided incentives 6.0 5.2 4.8 2003 2004 2005 CHART 18: PROVISION OF INCENTIVES TO EMPLOYEES TO TRAIN AT THEIR OWN TIME, 2003-2005 % Manpower Research & Statistics Department, Ministry of Manpower 20


















6.3 Most of the establishments that provided support for their employees to train at their own time did so by granting examination/study leave (72%) and
providing partial/full subsidies for their course fees (65%).






















CHART 19: PROVISION OF INCENTIVES (%) TO EMPLOYEES TO TRAIN AT THEIR OWN TIME, 2005 26.8 22.1 35.8 51.0 7.7 4.8 4.1 5.0 Overall 25-99 100-249 250 & over Establishments with incentives as a % of total establishments surveyed
Proportion of employees who benefitted 11.6 51.4 73.5 65.9 11.8 48.3 74.9 70.6 14.4 42.5 65.2 71.5 Provide unpaid time off for training Provide paid time off for training Help to pay for course fees (partial/full) Grant Study/Exam Leave 2003 2004 2005 Notes:
(1) Based on establishments that provided incentives for staff to train at their own time.
(2) The figures do not add up to 100% as establishments are allowed to indicate more than one option CHART 20: TYPE OF TRAINING SUPPORT PROVIDED (%) TO EMPLOYEES TO TRAIN AT OWN TIME, 2003 - 2005 Manpower Research & Statistics Department, Ministry of Manpower 21




7 CONCLUDING REMARKS
7.1 In line with the upbeat economic conditions, more employers sent their staff for training in 2005. They also trained a higher proportion of blue collar
workers; although this is still less than the training given to the PMETs. As with
previous years, the larger establishments were more committed to training than those
smaller. Generally, employers reported tangible benefits from training their
employees, especially in terms of the impact on productivity, products/services
quality and customer satisfaction.

Broad Occupational Groups Professionals, Managers, Executives & Technicians Clerical, Sales & Service Workers Production, Cleaning & Related Workers Help to pay for course fees 64.4 63.2 61.7 Provide paid time off for training 41.5 39.8 45.5 Provide unpaid time off for training 12.7 13.4 13.9 Grant examination/study leave 71.9 71.6 67.4 TABLE 3: TYPE OF TRAINING SUPPORT (%) PROVIDED BY OCCUPATIONAL GROUP, 2005 Note: Based on establishments that provided incentives for staff to train at their own time. Manpower Research & Statistics Department, Ministry of Manpower 22




2003 2004 2005 INDUSTRY Total 68.6 66.5 72.1 Manufacturing 68.9 65.8 74.9 Construction 68.5 75.6 85.7 Services 68.9 64.2 67.3 Wholesale & Retail Trade 63.9 61.2 63.4 Wholesale Trade 66.0 64.6 65.0 Retail Trade 54.2 46.8 56.5 Transport & Storage 69.7 66.7 70.1 Hotels & Restaurants 46.1 40.1 41.8 Hotels 86.6 87.3 90.7 Restaurants 38.3 32.0 34.7 Information & Communications 84.4 71.1 76.1 Broadcasting & Publishing 78.8 82.1 70.6 Telecommunications 93.8 87.8 100.0 IT & other Information Services 83.5 60.3 70.1 Financial Services 92.5 93.8 88.7 Financial Institutions 90.7 92.4 86.5 Insurance 100.0 100.0 100.0 Real Estate & Leasing Services 72.7 63.8 72.5 Professional Services 82.9 74.9 82.3 Legal, Accounting & Mgt Services 84.3 71.5 84.3 Architectural & Engineering Services 82.1 79.4 88.6 Other Professional Services 79.8 77.3 72.1 Administrative & Support Services 65.0 59.3 64.9 Community, Social & Personal Services 68.6 61.9 68.2 Education 94.9 95.2 81.9 Health & Social Services 85.6 77.0 96.6 Other Community & Social Services 53.2 46.0 52.1 OTHERS 35.2 66.2 61.5 ESTABLISHMENT SIZE 25-99 Employees 61.3 59.5 65.6 100-249 Employees 87.9 83.8 89.9 250 & Above Employees 96.5 95.0 96.0 TABLE 1: PROPORTION OF ESTABLISHMENTS (%) THAT PROVIDED STRUCTURED TRAINING BY INDUSTRY AND ESTABLISHMENT SIZE Note: Based on all establishments surveyed. Annex 1 Manpower Research & Statistics Department, Ministry of Manpower 23



Overall PMETs Clerical, Sales & Service Production,
Cleaning & Related INDUSTRY Total 55.9 59.7 53.1 54.2 Manufacturing 56.8 57.6 35.7 59.1 Construction 49.3 30.4 12.5 57.6 Services 56.3 62.6 57.0 41.9 Wholesale & Retail Trade 51.0 47.3 57.5 41.5 Wholesale Trade 44.5 46.7 44.7 38.8 Retail Trade 61.5 50.6 66.4 47.8 Transport & Storage 55.9 66.7 62.7 42.3 Hotels & Restaurants 53.0 47.3 59.0 43.7 Hotels 63.0 54.0 67.0 61.3 Restaurants 46.2 37.8 53.5 35.8 Information & Communications 52.7 55.0 43.7 48.5 Broadcasting & Publishing 60.1 65.7 35.6 54.2 Telecommunications 51.9 53.7 47.3 52.0 IT & other Information Services 48.1 49.3 31.3 42.1 Financial Services 75.2 78.3 71.8 54.6 Financial Institutions 74.7 77.9 70.9 54.8 Insurance 78.9 82.1 75.4 35.9 Real Estate & Leasing Services 39.1 54.6 38.2 31.8 Professional Services 56.4 60.6 38.6 60.6 Legal, Accounting & Mgt Services 59.7 68.2 40.9 55.8 Architectural & Engineering Services 46.7 40.1 26.3 65.1 Other Professional Services 60.3 64.4 38.7 52.2 Administrative & Support Services 38.4 28.7 41.4 34.7 Community, Social & Personal Services 62.5 68.0 59.0 41.1 Education 40.4 45.6 27.9 13.5 Health & Social Services 76.2 83.1 70.2 51.1 Other Community & Social Services 50.8 50.5 54.7 33.3 OTHERS 79.7 88.7 87.0 73.0 ESTABLISHMENT SIZE 25-99 Employees 42.2 40.0 36.2 47.7 100-249 Employees 48.6 50.7 44.1 49.3 250 & Above Employees 63.8 69.1 63.3 58.7 TABLE 2: PROPORTION OF EMPLOYEES (%) SENT FOR STRUCTURED TRAINING BY OCCUPATION, INDUSTRY AND ESTABLISHMENT SIZE, 2005 Annex 1 Note: Based on establishments that provided their employees with training. Manpower Research & Statistics Department, Ministry of Manpower 24

Total 25-99 100-249 250 & above To improve job specific skills 64.1 59.1 70.4 82.0 To meet regulatory/statutory requirements 59.3 58.6 58.6 64.2 To improve product or service quality 58.5 54.3 63.5 74.9 To improve productivity 47.3 41.2 55.1 69.1 To help employees develop positive work
attitudes/habits 38.3 32.8 44.9 59.3 To meet changes in technology 35.0 31.0 37.3 54.1 To promote career development 33.1 26.0 42.1 59.3 To cater for prod/svc changes which require new
skills 31.5 27.5 33.2 51.8 To improve generic/employability skills 27.5 22.5 31.6 49.9 Others 0.4 0.4 0.2 0.5





Total 25-99 100-249 250 &
above Current skills of employees are sufficient to meet business needs 62.8 63.3 56.0 59.3 Informal on-the-job-training sufficient 49.5 49.3 53.6 40.7 Budget is tight 22.7 22.3 28.8 22.2 Difficulties in releasing workers due to a lean workforce 20.6 20.1 26.4 29.6 Prefer to recruit new employees with required skills rather than train
up existing ones 15.8 15.5 20.0 14.8 Lack of suitable training courses 10.3 10.2 11.2 11.1 Training courses too expensive 9.5 9.3 14.4 7.5 Trained workers may leave or be poached by other companies 5.5 5.0 12.8 7.4 Lack of information about training courses 4.8 5.0 3.2 0.0 Unable to assess the likely benefits of training 4.4 4.5 1.6 7.4 TABLE 3: REASONS (%) FOR PROVIDING STRUCTURED TRAINING BY ESTABLISHMENT SIZE, 2005 Annex 1 TABLE 4: REASONS (%) FOR NOT PROVIDING STRUCTURED TRAINING BY ESTABLISHMENT SIZE, 2005 Note: Based on establishments that provided their employees with training. Note: Based on establishments that did not provide their employees with training. Manpower Research & Statistics Department, Ministry of Manpower 25
2003 2004 2005 $ % of total payroll $ % of total payroll $ % of total payroll INDUSTRY Total 538 1.2 511 1.3 542 1.3 Manufacturing 288 0.8 327 1.0 301 0.8 Construction 84 0.4 74 0.4 71 0.4 Services 786 1.5 709 1.6 782 1.6 Wholesale & Retail Trade 410 0.9 499 1.2 458 1.0 Wholesale Trade 510 0.9 570 1.1 600 1.0 Retail Trade 217 0.8 359 1.4 217 0.8 Transport & Storage 2,214 5.1 1,128 2.4 1,824 3.9 Hotels & Restaurants 182 1.0 280 1.5 163 0.8 Hotels 202 0.8 313 1.2 244 0.8 Restaurants 170 1.4 256 2.1 109 0.8 Information & Communications 678 1.1 789 1.3 668 1.1 Broadcasting & Publishing 341 0.5 474 0.8 438 0.8 Telecommunications 836 1.5 841 1.4 731 1.4 IT & other Information Services 574 0.9 1,000 1.7 726 1.0 Financial Services 763 0.7 1,079 1.3 941 1.1 Financial Institutions 717 0.6 1,102 1.2 939 1.0 Insurance 1,087 2.0 934 1.7 955 1.7 Real Estate & Leasing Services 214 0.8 273 1.1 353 1.0 Professional Services 571 0.8 869 1.5 853 1.4 Legal, Accounting & Mgt Services 612 0.8 923 1.4 972 1.5 Architectural & Engineering Services 385 0.7 313 0.7 263 0.6 Other Professional Services 855 1.3 1,598 2.5 1,282 2.1 Administrative & Support Services 152 0.7 181 0.9 204 1.3 Community, Social & Personal Services 534 1.3 554 2.4 555 1.4 Education 454 1.3 548 1.8 358 0.9 Health & Social Services 678 1.5 655 2.9 768 1.8 Other Community & Social Services 313 1.0 370 1.3 254 0.8 OTHERS 519 1.2 344 1.0 483 1.3 OCCUPATION Professionals, Managers, Executives &
Technicians 1,072 - 958 - 1,111 - Clerical, Sales & Service 381 - 364 - 348 - Production Operators, Cleaners & Labourers 143 - 180 - 149 - ESTABLISHMENT SIZE 25-99 Employees 249 0.6 330 0.9 305 0.8 100-249 Employees 270 0.7 296 0.8 330 0.9 250 & Above Employees 741 1.5 653 1.6 710 1.6 Note:
(1) Based on establishments that provided their employees with training.
(2) Data on training cost as % of total payroll not collected for occupation group TABLE 5: AVERAGE TOTAL TRAINING COST ($) PER EMPLOYEE BY INDUSTRY, OCCUPATION AND ESTABLISHMENT SIZE, 2003-2005 Annex 1 Manpower Research & Statistics Department, Ministry of Manpower 26 Internal/ Specialist Training Officers Managers/ Supervisors Other staff External trainers Training leading to formal qualifications Training leading to trade certifications INDUSTRY Total 28.4 42.1 21.2 81.5 33.6 25.4 Manufacturing 28.9 49.9 20.8 84.2 31.9 28.9 Construction 10.1 22.3 6.6 69.2 25.4 63.7 Services 34.5 45.1 26.5 84.3 37.2 10.4 Wholesale & Retail Trade 34.0 45.9 26.1 83.7 32.1 10.2 Wholesale Trade 33.2 44.9 27.3 84.2 33.6 12.1 Retail Trade 38.1 50.6 20.0 81.3 24.4 0.6 Transport & Storage 27.8 43.3 25.1 84.3 33.6 16.8 Hotels & Restaurants 45.5 57.3 26.4 82.0 38.8 11.8 Hotels 65.3 91.8 53.1 95.9 75.5 0.0 Restaurants 38.0 44.2 16.3 76.7 24.8 16.3 Information & Communications 53.2 41.1 20.2 79.8 34.7 1.6 Broadcasting & Publishing 54.2 41.7 50.0 100.0 33.3 0.0 Telecommunications 68.8 53.1 18.8 78.1 46.9 6.3 IT & other Information Services 45.6 35.3 10.3

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