Quiet before the storm

But Polish companies could lose out as a lack of professionalism and low industry standards have clients looking to more established names for training services. Can Poland's potential-laden trainers capitalize on the opportunity?

The largest amount of cash ever to be injected into Polish training businesses is set to be dispersed beginning from next spring and lasting through 2013. Some R10.5 (zł.40.26) billion will be pumped into employee training and development through a government program called Operating Program Human Capital (POKL). Some R9.7 (zł.37.2) billion of that money will come from European structural funds.

The government adopted the program in November 2006 to meet goals set by the EU's Lisbon Strategy development plan for increased investment in qualification and education of society. It will enable both entrepreneurs and training companies to apply for subsidies for a variety of training schemes, as well as postgraduate studies and e-learning for their employees. The program is the second of its kind, following the Sector Operating Program of the Development of Human Resources (SPO RZL), which released R250 (zł.960) million for training.

Cost concerns

The windfall could significantly boost efforts of the industry in Poland to bring its standards up to those of the West. "According our data, only zł.25 is spent per employee annually in Poland. In the US it is 90 times as much," said Sandler Sales Institute managing partner Dariusz Milczarek.

The biggest obstacle keeping Polish companies from investing in training is cost. The average price of a day's training for a single employee ranges between zł.200-500 on the company's premises and zł.1,500-2,000 off-premises. Private training for 10 people (on premises) costs up to zł.3,000, according to data from the Polish Agency for Enterprise Development (PARP). "Relatively few companies have long-term budget plans for training, and their actions are mostly reactive," explained Polish Chamber of Training Companies (PIFS) board president Piotr Piasecki.

But it's not all about the money. Experts warn that many companies are simply not aware of the importance of educating their employees. Meanwhile, the need for training is growing rapidly and, as the Polish labor market evolves, offering quality training packages is a key tool for attracting the crżme de la crżme. "Companies are increasingly asked about training and development schemes when they interview to fill even the lowest level positions. They expect not only a salary but opportunities too," said Magdalena Guillet, vice president of PIFS.

Developing potential

Despite the obstacles, the sector is developing rapidly. Although no research has been conducted, PIFS estimates the value of the training market to have reached zł.2 billion last year. According to PIFS, the number of training companies in Poland reached more than 3,000 last year, with some firms seeing their turnover double on the previous year.

"This is closely correlated with economic growth," noted Piasecki, adding that EU structural funds also played a significant role in the process. The injection of more only adds to the sector's profit-making potential.

Trials of youth

But this quickly developing market is still relatively young, and is constantly evolving. The vast majority of the companies have no more than a few people and lack clearly specified standards for the qualifications of the coaches and trainers, some of whose professionalism is disputable.

PIFS aims to improve the quality of training in the country.

"So far we have made a code of good practices and right now we are working on standards for the coaches, trainers and language teachers, as well as for the code of standards for the whole branch," said Piasecki. PIFS's Guillet emphasized that, the association is also an important lobbying force.

PIFS assistance will be of a great value, especially for small companies, in applying for the POKL funds. Guillet warned that without PIFS help, smaller training firms could struggle to get their share of the subsidies and lose out to their larger competitors. She added that to avoid going under, many of these companies would consolidate.

The question remains whether the training business offer in Poland meets the demands of the businesses, especially those of foreign origin. Training companies note that although a gap exists between the training offer in Poland and in that in the West, it is not as significant as it once was, and global trends are visible locally. 

More in store

Despite some improvement, the demands of some clients still happen to be too high for Polish firms to meet. Recruitment agency Sigmar Recruitment general manager Mark Twomey admitted that his firm relies solely on the foreign training services for his staff. "We operate in a specific branch which require very specific skills, we haven't found anybody in Poland competent enough to do that," he explained.

The director of human resources at Real, Magdalena Stalpińska, echoed those sentiments, explaining that, despite its growing size, the variety of training on offer in Poland is not wide enough. "We often notice the same schemata and exercises being copied, which flood the market," she said, adding that there are few firms in Poland that create a new quality in the area of training.

Some companies have noticed improvement. "The offer of the training companies broadens with every year, and the programs are more and more tailored and flexible," said Lotos Group human resources director Joanna Tyszka. She admitted though, that when it comes to organizing larger and more demanding training programs the company prefers large international companies with more experience and know-how.

Awaiting the rush

Real's Stalpińska said that almost all the criteria that Real applies in selecting a training company relates to the personality of a specific trainer, rather than the institution behind him. 

Though Poland lags behind the West, more and more employers are investing in their workforce. Between March 2005 and June 2007, some 98,000 companies - 88,000 of which were small or medium-sized - participated in courses organized by PARP and co-funded within the SPO RZL 2004-2006 framework. Industry experts expect the new program will lead to a rush for the funds. "This is the quiet before the storm," concluded PIFS's Guillet.