Investment in corporate education emerges as an alternative to improve professional qualifications

Press release

· Unprecedented study by Deloitte, involving 126 organizations, portrays the corporate education scenario in Brazil and their maturity in practice;

· 28 percent of the surveyed organizations already have a corporate university. Of the 72 percent that does not, more than a quarter (28 percent) has shown interest in creating such a structure;

· Among the organizations that declared investing resources in corporate education, on average this investment is 0.47 percent of gross revenues for the period.

In the midst of a highly challenging environment in improving the qualification of professionals and retain talent in Brazil, companies of many different sizes are increasingly adopting corporate education as a solution for these challenges. This finding is the unprecedented study “Corporate Education in Brazil”, conducted based on the answers of 126 organizations, 28 percent of which said that they already have a corporate university.

“The study shows that there is a strong trend to develop and implement corporate universities. This practice tends to grow even more in the coming years,” says Marcos Braga, Deloitte’s Director of Corporate Education—a new line of solutions focused on corporate education set by the firm, aimed at bringing to the market technical knowledge in different segments, such as accounting and financial practices. Of the organizations in the sample that do not have a corporate university (72 percent), 28 percent intend to launch one within two years.

Alongside corporate universities, which come as one of the main education trends at corporate level, distance education is also one of the growing trends. The survey shows that in addition to being a growing component among corporate education practices, distance education should require the development of mobile platforms and games, as well as new tools to meet the high demand. Of the investments disclosed by organizations, 67 percent are allocated to in-class courses and 33 percent to distance learning.

The survey also breaks down the investments made organizations in education. Of the surveyed organizations—small businesses, with annual revenues of up R$250 million, medium-sized entities, with annual revenues of up R$1 billion, and large corporations, with annual revenues in excess of R$1 billion—63 percent replied to the question about how much they invest in corporate education as a percentage of their revenues. The replies of this group indicate average investments equivalent to 0.47% of annual revenues.

Among organizations that disclosed the amounts of resources invested in corporate education management (46 percent of the sample of respondents), the disclosed investment mean is approximately R$2.4 million. This amount includes management costs and the costs incurred on the elected model.

Proportionally to their revenue, medium-sized entities are those that invest the most, with 0.72 percent of their annual revenues (average percentage stated by those that answered this question) and R$4.1 million (average amount stated by this group’s respondents to this specific question).

Structure and maturity of the Brazilian corporate education

Deloitte’s survey also generated data on the conditions of the internal structures that organizations used in education. 45 percent of the respondents have teams dedicated to the corporate education system and have a department with four people on average. “It is clear that organizations are looking for change and structuring. At this early date, they need to assess the best training methods and which ones must be their internal structures, in light of their own demands,” highlights Marcos Braga.

As for the contents taught, hard skills—defined as technical, specific skills required to perform a given activity—are the ones most put into practice (58 percent of replies among the organizations that answered this question). Additionally, 47 percent of the organizations’ staff attended at least one training course in 2013 (last full base year on which the survey was able to obtain replies to this question). As for the staff that receives more training, the most mentioned positions are managers and coordinators, with 48 and 42 percent of replies, respectively.

In line with the business strategy

The survey also shows that corporate education must be aligned with an organization’s strategy so that its investments have the intended return. To achieve this, it is important to assess if the training conducted has been productive and fulfilled its role. We have, therefore, identified the main mechanisms to make this assessment. As follows: assess efficiency through interviews with the team manager; assess the operations’ response and performance interviews and indicators.                                                                                                       

Labor force enhancement, which includes qualification, talent retention, and productivity, is increasingly closer to organizations. “The technologic progress of the market as a whole requires permanent updating from professionals. It is hard for academia to keep up the pace with this trend. Therefore, organizations need to embrace this role as educators,” concludes Braga from Deloitte.                                  

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