On the Job Training: A Powerful Tool for Continuous Procurement Learning

Procurement shifts faster than ever, driven by AI, digital transformation, ESG, and global market dynamics, maintaining a high-performing team requires more than classroom training. “On the job training” (OJT) has since long ben established as a highly effective, embedded learning approach: empowering procurement professionals to learn by doingreflect with peers, and apply new knowledge immediately in their roles. But new technology open new possibilities.

At Learn How to Source (LHTS), we design short, focused online modules (under 30 minutes), paired with group reflection and real-world application exercises. Our three, pronged OJT model, Learn, ReflectApply, combines bite-sized, relevant content with action-oriented practice built into daily work. Below, we explore why this model works so well, how procurement teams can integrate it, and how to make it sustainable.


What is On the Job Training

Yes, what is on-the-job training? On-the-job-training refers to learning that occurs in the context of actual work tasks, it’s hands-on, contextual, and immediately relevant. According to research:

  • Employees acquire 70 % of skills on the job, 20 % from coaching, and only 10 % from formal training
  • Companies with strong OJT show 218 % higher revenue per employee compared to those without.
  • When employees believe they get adequate training, engagement skyrockets: 92 % say training drives engagement.
  • ADP’s 2025 study shows that confident employees who receive continued on-the-job opportunities are significantly less likely to leave .

Acumen in procurement – negotiation, supplier management, category strategy, sustainability assessment – grows through repeated, real-world application. Formal training alone rarely transfers to complex buying duties. OJT bridges that gap, by embedding learning in the day-to-day procurement workflow and providing on the-job training opportunities.


LHTS’s OJT Framework: Learn → Reflect → Apply

1. Learn: bite‑sized online modules

At LHTS, our on‑demand courses are highly practical, typically 15–40 minutes, designed to fit into a busy procurement schedule while delivering immediate value. Here are actual course examples you’ll find in our library:

General Terms & Conditions – Basic Course (Operative Buyer)

  • Duration: ~25 minutes
  • Content: Learn how to draft and tailor General Terms & Conditions (GTC) in purchase orders using real-world examples like Volvo’s GTCs. Includes a final quiz and downloadable slide deck.
  • LinkGeneral Terms & Conditions – Basic Course 

Sourcing Process – Part 1: Basic Course (Tactical Buyer)

  • Duration: 15–20 minutes
  • Content: Discover the eight-step sourcing process and stakeholder management, based on sourcing frameworks like van Weele. This is the first of a three-part series.
  • LinkSourcing Process part 1

Category Management – How to Get Started (Advanced, Management Role)

  • Duration: ~36 minutes
  • Content: Teaches core category management concepts, a four-step strategy development approach, and provides practical checklists and templates.
  • LinkCategory Management – How to Get Started 

What Is Expediting? (Operative Buyer)

  • Duration: ~15 minutes
  • Content: Explores expediting techniques, real-life tools (like escalation lists), and includes a case study in manufacturing contexts.
  • LinkWhat Is Expediting?

Why short works:

  • Most procurement teams lack long windows for training. LHTS modules are built to fit in lunch breaks or between calls.
  • Maximum knowledge retention happens when learners engage in short, intense bursts.

Support from L&D research: LinkedIn’s 2025 Workplace Learning Report encourages on-demand, AI-enhanced, bite-sized learning—exactly what LHTS offers.

Get access to 5 introduction level courses for free and start your on the job training

2. Reflect: group discussion unlocks deeper insight

We encourage procurement teams to take modules together and pause for short reflection sessions—a quick chat by the coffee machine, or a 10‑minute huddle during lunch.

Why reflection matters:

  • Team-sharing creates tacit learning—the kind that live case studies and personal examples uncover.
  • The Financial Times stresses how hybrid work threatens tacit knowledge transfer, and purposeful reflection helps preserve it .

Sample reflection prompts:

  • “How could you apply the Module’s negotiation strategy in your current supplier negotiation?”
  • “What are some blind spots this strategy might not address in our context?”

3. Apply: real tasks to cement the learning

For seasoned buyers, application might mean using a new negotiation tactic with a key supplier this week. For trainees, LHTS always includes project work: real or simulated tasks like drafting an RFP, analyzing supplier bids, or prepping for a negotiation—designed to follow the module.

Why apply now:

  • The 80/20 learning rule shows that knowledge with immediate use is retained far better.
  • Gallup reports that being involved in relevant learning can increase profit by 21 % and productivity by 17%  FT.com

Implementing on-the-job training programs with LHTS in Your Procurement Team

A. Download a module and practice together

  1. Monthly “Learning Moment”: Block 30 min on everyone’s calendar. Begin with a LHTS short course during a team coffee time.
  2. Prompt structured reflection: Assign someone to ask three questions: (a) What stood out? (b) Is there a current case to apply this? (c) Any concerns or barriers in using it?

Example: After the module on “Supplier development,” the team might identify one commodity they could re-categorize this quarter, map out the impact, and test it as part of a on the-job training programs.

B. Embed learning into procurement cycles

  • Bid reviews: Include mini-reflection slots after RFP responses; “Which new insights from last month’s module helped?”
  • Weekly team meetings: Ask individuals to update on how they applied module techniques, win sights, setbacks, lessons learned.

C. Integrate projects for trainees

New procurement staff should receive short-term projects tied to modules:

This replicates an apprenticeship model while delivering tangible outcomes. It’s practical and builds confidence early.


Why Procurement Managers Should Champion On the job training

  1. Embed knowledge in mindset
    It’s not about finishing courses, it’s about making new behaviors routine. Reflective discussion ensures modules don’t stay abstract.
  2. Reinforce informal mentorship
    With hybrid work on the rise, informal learning slows. On the job training structures ensure regular peer dialogues.
  3. Boost retention and engagement
    Recruitment and training are expensive, but on the job training is low-cost and high-impact: companies that train well see dramatically higher employee retention. ADP research, SC Training.

Evidence and Insights from 2024–25 Research

Why is on the job training (OJT) so effective, especially in procurement? Let’s look at the latest data and thought leadership from 2024 and 2025 to understand its value.

1. OJT Drives Real Business Outcomes

A recent 2025 study published on ResearchGate explored how structured procurement training impacts organizational performance:

  • Finding: Procurement teams that engaged in structured training, especially when tied to their daily work, showed significant improvements in process efficiency and strategic performance.
  • Source“The Impact of Procurement Training on Procurement Process Efficiency and Organizational Performance: A PLS-SEM Analysis”
    📄 ResearchGate – June 2025

2. Skill Development is the Key to Future-Ready Teams

The World Economic Forum’s Future of Jobs Report 2025 emphasizes the urgency of reskilling across all industries:

  • Finding: 50% of employees will require upskilling by 2027, with procurement among the top domains undergoing transformation due to AI, ESG compliance, and supply chain digitization.
  • The report recommends frequent, role-specific microlearning and on-the-job practice as the most scalable strategy.
  • SourceWEF – Future of Jobs Report 2025
    📄 World Economic Forum – May 2025

3. Employees Value Learning Opportunities and Stay Because of Them

ADP’s 2025 People at Work report highlights employee attitudes toward training:

  • Finding: 82% of employees say they would stay longer at a company if they had continuous learning and upskilling opportunities.
  • Skills confidence was found to be a major driver of engagement and productivity.
  • On the job training specifically was shown to improve employee confidence in applying knowledge at work, especially when combined with team-based learning moments.
  • SourceADP Research – People at Work 2025: A Global Workforce View
    📄 ADP Research Institute – January 2025

4. Microlearning Improves Retention and Productivity

According to Devlin Peck’s 2025 roundup of training statistics:

  • Companies using microlearning techniques (like short, job-specific modules) see greater retention, faster application, and 218% higher revenue per employee.
  • 92% of employees agree that well-structured learning opportunities increase their engagement.
  • Bite-sized, role-relevant, and immediately actionable learning—hallmarks of LHTS’s approach—are now standard among high-performing L&D programs.
  • SourceDevlin Peck – Corporate Training Statistics 2025
    📄 Devlin Peck – February 2025

5. Hybrid Work Demands More Intentional Knowledge Transfer

The Financial Times explored how hybrid and remote work is eroding “tacit knowledge” (the know-how typically shared informally). On the job training, with built-in reflection and real-world application, helps recreate those informal mentorship moments:

  • Finding: Companies that enable structured peer reflection and shared application overcome the loss of informal “water cooler” learning.
  • LHTS’s encouragement of 5-minute coffee discussions and project debriefs fits exactly into this need.
  • SourceFinancial Times – “Tacit Knowledge Is Disappearing in Hybrid Workplaces”
    📄 Financial Times – March 2025

6. Tailored, Role-Specific Training Increases Learning ROI

Skill Dynamics’ 2024 report on procurement training programs found that organizations using modular, role-based courses:

  • See better ROI due to increased knowledge transfer into the workflow, especially when training includes practical examples and real deliverables.
  • Highlight the importance of contextual learning and team-based reflection, as used in LHTS courses.
  • SourceSkill Dynamics – Effective Procurement Training Programs
    📄 Skill Dynamics – November 2024

Summary: Why the Research Supports LHTS’s OJT Model

Across all the 2024–2025 research, the consistent findings are:

  • Learning needs to be short, relevant, and embedded in actual work
  • Employees want training that builds skills confidence and supports team learning
  • Reflection and real-world application are essential for retention and performance
  • Procurement-specific training with clear role alignment creates tangible value

With LHTS’s model—Learn → Reflect → Apply—your team is equipped to turn theory into action, one module and one coffee chat at a time.


Integrating with broader L&D

On the job training doesn’t replace formal training, it complements it by bridging theory and daily work. Complementary elements include:

  • Evening live Q&A sessions with industry experts
  • Quarterly procurement forums with cross-functional stakeholders
  • AI-assisted learning: for example, LHTS is exploring smart summaries and prompts embedded in modules

Tips for procurement leaders to get started

  1. Lead from the top: Personally champion and complete modules. Your engagement signals importance.
  2. Establish OJT champions: Select team members to facilitate reflection sessions.
  3. Monitor early wins: Encourage a culture of sharing results from small wins.
  4. Scale gradually: Roll out to one team, capture feedback, refine reflection questions, then expand.

The Future of Procurement Learning: Skills, Technology, and the Role of on the job training

Procurement is undergoing a historic transformation. What was once a function focused on cost savings and compliance is now becoming a strategic driver of innovation, resilience, and sustainability. With the rise of digital procurement tools, AI, ESG mandates, and geopolitical supply chain disruptions, the skills required of procurement professionals are shifting rapidly.

As we look toward 2026 and beyond, one truth becomes clear: learning must be continuous, embedded, and agile. Formal classroom-style training—while still valuable—is no longer sufficient. The future belongs to organizations that integrate on the job training into the daily rhythm of procurement work.

Let’s explore the forces shaping the future of procurement learning and how On the job training aligns perfectly with what’s coming next.


1. Procurement Skills Are Becoming Dynamic and Cross-Functional

Yesterday’s skillset: Negotiation, cost analysis, contract drafting, compliance.

Tomorrow’s skillset (2024–2026):

  • Data literacy: Interpreting dashboards, using analytics tools, and making data-backed decisions.
  • Digital fluency: Understanding e-sourcing platforms, ERP integrations, and AI tools.
  • Sustainability & ESG expertise: Evaluating supplier environmental and social performance.
  • Resilience & risk thinking: Anticipating disruptions and designing supply chains accordingly.
  • Stakeholder collaboration: Partnering with legal, finance, engineering, and ESG teams.

🧠 According to the World Economic Forum’s 2025 Skills Outlook, procurement professionals will need to develop “analytical thinking,” “technological literacy,” and “systems thinking” at unprecedented speed.
📄 WEF Future of Jobs 2025


2. AI and Automation Are Changing the Role of the Buyer

Generative AI, predictive analytics, and smart contracts are already automating:

  • Supplier shortlisting
  • Risk scoring
  • Basic contract generation
  • Spend classification

But here’s what AI cannot do (yet):

  • Build supplier relationships
  • Navigate complex negotiations
  • Strategize around make-or-buy or insource-vs-outsource
  • Align procurement with business priorities

This means buyers must upskill to:

  • Work alongside AI tools
  • Interpret AI outputs with business judgment
  • Ask better questions, not just input better data

A McKinsey 2024 procurement report predicts that over 60% of current tactical tasks will be automated, while strategic, judgment-heavy tasks will dominate buyer roles by 2026.


Why OJT Is the Ideal Format for Upskilling in the AI Era

Learning how to use AI tools or interpret ESG scorecards is not just about watching a webinar—it’s about applying the new knowledge in real procurement scenarios.

LHTS’s Learn–Reflect–Apply model supports this transition:

  • Learn: A 20-minute module on “What Is Spend Analysis?”
  • Reflect: Discuss how spend dashboards can highlight high-risk categories
  • Apply: Run a spend analysis on your own supplier portfolio and present findings to your team

This is AI-enabled procurement learning in action—not theory.


ESG and Regulatory Pressures Demand Ongoing Learning

2024–2025 has seen an explosion of sustainability legislation affecting procurement:

  • CSRD (EU Corporate Sustainability Reporting Directive) expands ESG disclosure obligations
  • CSDDD (Corporate Sustainability Due Diligence Directive) requires companies to manage supplier human rights and environmental risks
  • US SEC climate disclosure rulesGerman Lieferkettengesetz, and similar policies around the globe

This means buyers must now:

  • Understand Scope 3 emissions
  • Incorporate ESG into supplier selection
  • Monitor ESG KPIs post-award

And these regulations are evolving—fast. OJT allows teams to stay continuously updated, embedding the latest ESG knowledge into daily sourcing work.

📄 CSDDD Summary – EU Parliament


4. Procurement Talent is in Short Supply – Upskilling from Within is Essential

According to the LinkedIn Workplace Learning Report 2025:

  • 91% of L&D professionals say filling skills gaps internally is more cost-effective than hiring.
  • Procurement is listed among the hardest roles to recruit for, due to a shortage of candidates with tech and sustainability expertise.

This puts pressure on managers to:

  • Develop junior talent quickly
  • Reskill existing buyers for new challenges
  • Retain top performers through professional growth

OJT helps here by:

  • Turning every sourcing project into a learning opportunity
  • Offering role-specific modules to accelerate development
  • Encouraging peer-to-peer learning (which increases retention)

📄 LinkedIn Learning Report 2025


5. The Rise of AI-Powered and Personalized Learning

LHTS and other forward-looking providers are beginning to integrate AI into learning journeys:

  • Smart recommendations based on role or training history
  • AI-generated summaries of lessons for quick review
  • Embedded reflection prompts based on learning behavior
  • Chat-style coaching for concept reinforcement

This allows teams to scale OJT without sacrificing relevance.

Gartner’s 2025 L&D Innovation Brief predicts that “microlearning combined with AI-driven personalization will become the default upskilling model by 2026.”


Final Thought: The Procurement Learning Model of the Future Is Here

The days of separating “learning” from “working” are over. In the future:

  • Learning happens in the flow of work
  • Reflection becomes a shared habit
  • Every task is an opportunity to build capability
  • AI supports—but doesn’t replace—human insight

That’s the world LHTS prepares your team for.

By combining:

  • Expert-led microlearning
  • Team-based reflection prompts
  • Real-world application projects
    …your procurement team will not just keep up with the future—they’ll lead it.


Conclusion

On-the-job training with LHTS is a strategic enabler for procurement excellence:

  • Learn: Short, focused modules that respect busy schedules
  • Reflect: Peer discussions that capture real context and tacit insights
  • Apply: Real tasks that embed learning and deliver measurable results

This integrated model aligns with leading academic and industry evidence, drives procurement performance, enhances engagement, and strengthens retention. For procurement managers aiming to boost capability without derailing workflow, LHTS offers the tools, and framework, to turn learning moments into business-impacting action.


Ready to get started and provide?

How to provide on-the-job training opportunities:

  • Pick your first module from the LHTS catalog (or contact us for advice).
  • Schedule a 30‑minute group session this week.
  • Debrief with reflection questions.
  • Assign a small real task based on the module.

Transform your team’s next procurement cycle into a learning engine, with real delivery outcomes via on-the-job-training.

References

  1. World Economic Forum – The Future of Jobs Report 2025
    Skills outlook, job disruptions, and upskilling priorities.
    🔗 https://www.weforum.org/publications/the-future-of-jobs-report-2025/in-full/3-skills-outlook
  2. ADP Research – People at Work 2025: A Global Workforce View (January 2025)
    Insights on employee skills confidence, on-the-job training impact, and retention.
    🔗 https://www.adpresearch.com/wp-content/uploads/2025/01/PAW2025_Skills_v12.pdf
  3. Devlin Peck – Corporate Training Statistics & Trends 2025 (February 2025)
    Data on training effectiveness, revenue impact, and employee engagement.
    🔗 https://www.devlinpeck.com/content/employee-training-statistics
  4. ResearchGate – “The Impact of Procurement Training on Procurement Process Efficiency and Organizational Performance: A PLS‑SEM Analysis” (June 2025)
    Correlates structured procurement training with performance gains.
    🔗 https://www.researchgate.net/publication/381783707
  5. LinkedIn Learning – Workplace Learning Report 2025
    Trends in corporate learning, upskilling approaches, and talent retention.
    🔗 https://learning.linkedin.com/resources/workplace-learning-report
  6. Financial Times – “Tacit Knowledge Is Disappearing in Hybrid Workplaces” (March 2025)
    How purposeful OJT supports the loss of informal knowledge sharing.
    🔗 https://www.ft.com/content/071089b8-839a-4f96-af79-394c08a146d1
  7. Skill Dynamics – Effective Procurement Training Programs (November 2024)
    Best practices in modular, outcome-based procurement learning.
    🔗 https://skilldynamics.com/blog/effective-procurement-training-programs
  8. McKinsey & Company – Procurement in the Age of AI (2024)
    Forecasts automation of routine tasks and rising importance of strategic roles.
    🔗 https://www.mckinsey.com/industries/operations/our-insights/procurement-in-the-age-of-ai and https://www.mckinsey.com/capabilities/operations/our-insights/operations-blog/making-the-leap-with-generative-ai-in-procurement
  9. Gartner – L&D Innovation Brief: AI in Learning (2025)
    Predicts that AI-driven microlearning will dominate future upskilling strategies.
    🔗 https://www.gartner.com/en/documents/5104801 (subscription may be required)
  10. European Parliament – CSDDD Summary (Corporate Sustainability Due Diligence Directive) (April 2024)
    Overview of supply chain human rights and environmental compliance requirements.
    🔗 https://www.corporate-sustainability-due-diligence-directive.com/?utm_source

What is the meaning of on-the-job training?

On-the-job training is a method of teaching employees the skills and competencies needed for their role while they are performing their actual job tasks.

What is an on-the-job training method?

An on-the-job training method involves employees learning and developing skills while performing their job duties, often under the guidance of a more experienced colleague or supervisor. This practical approach allows trainees to gain hands-on experience and immediately apply what they learn in real work scenarios.

What is included in on-the-job training?

On-the-job training typically includes:

Orientation and induction
Job shadowing
Hands-on practice
Mentoring and coaching
Feedback and evaluation
Safety procedures
Company policies and procedures
Skill development specific to the role

What is the basic on-the-job training?

Basic on-the-job training involves practical instruction provided to employees while they perform their job duties. It typically includes orientation to workplace policies, procedures, and equipment, along with hands-on experience under the guidance of experienced colleagues or supervisors. The goal is to equip new hires with the necessary skills and knowledge to perform their roles effectively.

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