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Benefits from Employee Training and Development


Regardless of the size or type of an industry or business, training can have a measurable impact on performance and the bottom line.

Research shows that productivity increases while training takes place. A staff who receives formal training can be 230 per cent more productive than untrained colleagues who are working in the same role. Staying competitive is the key to sustainability. Training your staff, keeping them motivated and up-to-date with industry trends and new technologies is essential to achieving that goal.

Staff benefit too, learning new skills and becoming a valued asset in any organization. Training brings direct benefits to business and can be calculated as a return on investment.

High labor productivity increases business output and can open a greater share of the market or expand it by improving products, services and reputations.

Successful training is focused on supporting your business objectives.

  • Staff retention

Training increases staff retention which is a significant cost saving, as the loss of one competent person can be the equivalent of one year's pay and benefits.

In some companies, training programs have reduced staff turnover by 70 per cent and led to a return on investment of 7,000 per cent.

  • Improved quality and productivity

Training that meets both staff and employer needs can increase the quality and flexibility of a business’s services by fostering:

  • Accuracy and efficiency
  • Good work safety practices
  • Better customer service.

Most businesses provide on-the-job training, particularly during induction. Ongoing training almost always shows a positive return on investment.

  • The flow-on effect

The benefits of training in one area can flow through to all levels of an organisation. Over time, training will boost the bottom line and reduce costs by decreasing:

  • Wasted time and materials
  • Maintenance costs of machinery and equipment
  • Workplace accidents, leading to lower insurance premiums
  • Recruitment costs through the internal promotion of skilled staff
  • Absenteeism.
  • Staying competitive

Businesses must continually change their work practices and infrastructure to stay competitive in a global market. Training staff to manage the implementation of new technology, work practices and business strategies can also act as a benchmark for future recruitment and quality assurance practices.

As well as impacting on business profit margins, training can improve:

  • Staff morale and satisfaction
  • 'Soft skills' such as inter-staff communication and leadership
  • Time management
  • Customer satisfaction

There are numerous sources of on-line information about training and development. Several of these sites (they're listed later on in this library) suggest reasons for supervisors to conduct training among employees. These reasons include:

1. Increased job satisfaction and morale among employees

2. Increased employee motivation

3. Increased efficiencies in processes, resulting in financial gain

4. Increased capacity to adopt new technologies and methods

5. Increased innovation in strategies and products

6. Reduced employee turnover

7. Enhanced company image, e.g., conducting ethics training (not a good reason for ethics training!)

8. Risk management, e.g., training about sexual harassment, diversity training

Companies that have a healthy training culture report the following benefits:

  • Improved quality
  • Increased productivity
  • Greater flexibility and responsiveness to change
  • Reduced insurance premiums
  • Less wastage
  • Reduced maintenance and repair costs
  • Greater commitment from staff
  • Higher staff retention rate
  • Improved morale.

Perhaps the most important benefit of a healthy training culture is that the skills of your staff are formally recognised and that your employees feel that their contribution to the company is valued.

Renewed focus on Corporate Training

Upcoming technologies are aimed at making organizational processes more efficient, but this effort is incomplete without proficient employees who are in touch with forthcoming innovations in their companies. Today, human capital has replaced physical capital as a source of competitive advantage for all organisations, big and small; hence there is a renewed focus on corporate training to create a better, faster and smarter workforce that will impact business results.

The training industry in India has evolved as a business effectiveness tool. The arena of training has moved on from employee retention programmes to issues like sales training, leadership, relationship building and increasing production. Sanjeev Duggal, CEO and MD, NIS of Sparta says that, “Training has become a critical business enabler and is being linked to business outcome. Due to ever-changing market scenarios and stiff competition, every organisation wants to make optimum use of the most critical resource-people-efficiently and effectively to impact business results.”

Uday Kulkarni, Senior Vice-president, Aptech, adds that “There is an increased awareness relating to the need for corporate training in India. A certain shift is taking place from a generic to a specific and focused training approach. As a result, there is a lot more planning and analysis going into evolving a training strategy. Human capital is recognized as the most important resource, and companies are therefore making efforts to hone it through training.”


 "Training has become a been critical business enabler that is being linked to business results"

-Sanjeev Duggal
NIS Sparta



"Corporate IT training has still not been imbibed as a culture in most organisations.

It is need-based rather than a planned activity"
-Jitendra Nair
Karrox Technologies

On the other hand, Jitendra Nair, Vice-president, Karrox Technologies, believes that corporate IT training has still not been imbibed as a culture in most organisations. According to him, it is more need-based rather than a planned activity. The intensity in the approach is now changing with good companies dedicating IT training budgets for their IT and end-user staff. In India, corporate training markets are largely active in the re-skilling space. This is the area where participants are trained on newer technologies in order to enhance their productivity.”

Nasscom figures indicate that the IT corporate training market is expected to touch rs. 600 crore by 2010 from the current rs. 210 crore. Internationally, 80 percent of a training company’s revenue comes from corporate training. However, in the Indian market, the revenue figure could be 50 percent from retail training and the rest from the corporate segment.

He adds, “The prevailing thrust on public domain/retail training is primarily due to the disconnect in our academic approach where the latest technologies are not offered, thus making it necessary for job aspirants to get trained on their own in order to be job-worthy. Due to high competition in the job market space and high aspiration factors, our students generally have the culture of learning before they apply for jobs.”


"With the increased utilization of IT in all sectors, intensive training has become essential"
-Rajeev Katyal

Senior Vice-President            

Enterprise Learning Solutions, NIIT

Specialization in training

Training in India is imparted at all levels—frontline, middle or senior management—of the organization, but the emphasis is on the frontline staff and the senior management. Duggal states, “The training imparted to the frontline staff is skill-based. But the acute shortage of quality people at the senior level—the people who actually builds and manage companies—has made investment in training and development an important tool for the management of the organization.”

Nair is of the view that corporate training is largely happening on the software development, networking and IT security space at different levels. Specialization training is gaining momentum, and hence delivery is task-oriented rather than theory and science-based, as was in the past. Rajeev Katyal, Senior Vice-president, Enterprise Learning Solutions, NIIT, believes that with the increased utilization of IT in all sectors, intensive training has become essential. Both the government and private sectors are relying heavily on the training of their employees.

In-house vs. outsource

The kind of training requirement an organization has determines whether the training is conducted in-house or is outsourced to a third party. Duggal notes, “Training programmes that involve volume and are done on a consistent basis (like the voice-and-accent training imparted at BPOs) is generally done in-house. But an organization usually involves a third party when there is need for a specialized training programme like a management development programme, role-based skill development programme or outbound programme.”

Corporate preference is generally towards organizations that have good experience in training corporate personnel. Training students and training professionals are different in terms of approach, methodology and delivery. Trainers have to be highly experienced with a track record of successful delivery.

Nair explains, “Training programmes are usually in-house where the client utilizes his own environment and facilities, thereby giving him traveling and economic benefits. But some organizations outsource their entire training programmes to qualified and reputed training organizations after due diligence on their credentials, faculties, client references and experience in the business.”

According to Katyal, the choice between outsourcing and in-house training depends on the nature and need of the organization. IT and BPO companies undertake a lot of in-house training, and depending on the kind of specialized training required, they outsource. Government sector companies mostly choose to outsource. Outsourcing offers the advantage of sourcing scarce talent and the ability to ramp up quickly, whereas in-house training offers greater control.

Matching schedules and providing customized courseware for customized content is another operational challenge in this segment.

Katyal points out that the challenges which companies face while undertaking training programmes includes finding locations for training in remote areas and an experienced faculty.

Multiple gains

Training makes an organization well-equipped to keep pace with the changing dynamics of business. Employees frequently develop a greater sense of self-worth, dignity and well-being as they become more valuable to the firm and to society. Generally, they receive a greater share of the material gains due to their increased productivity. These factors give them a sense of satisfaction through the achievement of personal and company goals.

Nair points out that IT-based training programme enable participants to use software to its fullest potential, thereby cutting down time requirements and getting the best RoI on the company’s technology deployments. “Training as a culture also helps corporate HR retain their people. On the technology side, participants aspire for knowledge initiatives. Constant updating on technologies is at most times a good reason for people to stay longer in an organization.”

He adds, “From a training company perspective, it’s a relationship-based marketing model and leads to a constant revenue model. It’s an effective B2B model for mature IT training companies, and in the process adds value to their clients and their own business. Even for their technical staff, it’s a new scale that they always aspire to reach as a technocrat.”

Who’s Training Whom



Corporate Training Clients


NIS Sparta

Coca-Cola, IBM, Maruti, American Express, Thermax, Mahindra Finance, Accenture, APAC, Pantaloon, Godrej & Boyce

Aptech Training Solutions

Maruti Udyog, Electrolux Kelvinator, Dabur, Valvoline Cummins, Perfetti van Melle India, National Thermal Power Corporation, Gas Authority Of India, Delhi Police, Standard Chartered Bank, Indian Oil, Motorola India, ICICI, Bayer, Mahindra & Mahindra, Blue Star, HP, Onida


Godrej Infotech, Times of India, Reliance Infocomm, Reliance Industries, Wipro Infotech, Tata Consultancy Services, Siemens, Union Bank of India, Infosys, Cap Gemini, Global Telesystems, South Eastern Coal Fields, Persistent Technologies, State Bank of India, HCL, Indian Navy.

Varied approaches

The approach taken for any training programme depends on the client requirement based on the changing market scenario. It could be specific training enhancing one particular skill or it could be a holistic approach facilitating organizational development taken up to address needs in a competitive market scenario.

Katyal discusses, “The current requirement for corporate training is mostly related to IT. However, management training, especially at the supervisory level, is also seeing rising demand these days. One of the areas for consideration while designing training programmes is incorporating a session on soft skills. (For IT skills, there is enough material available.) The approach is need-based. This is followed by the appropriate mix of curriculum, faculty skills and infrastructure planning. Usage of right training methodology is essential.”

Nair adds that the current method being practiced is to conduct a training-need analysis, and identify the people needing training in a variety of products. On such identification, the technical coordinator will finalize things like indicative schedules along with the proposed venue. Once the administrative aspects are completed, the technology implementation, that is, the delivery of training starts. In the case of a need-based approach, i.e. an urgent project deployment requiring some training, it’s always a holistic approach and is not process-oriented.

An evolving trend

The trend for corporate training is currently evolving in the country, and more and more organizations are opting for it. Katyal details, “The current scenario of corporate training looks promising in almost all sectors. With the government sector going in for capacity building, the rise in recruitment in the IT/BPO sector, and companies investing in IT, the need for corporate training is on the rise.”

Nair explains, “In the globalize environment where new products are hitting the market with great frequency and new technology deployments have become a business compulsion in order to enhance productivity and better turnaround time, training has become a crucial part of the technology deployment cycle.”

At last Kulkarni says, “Corporates today have realized that self-development among employees lead to better RoI for the organization. Training is essential to keep an organization’s human capital fit and fine to enable it take on the best in the world—and then sculpt a world-class organization.”




The State of Training and Development: More Spending, More Scrutiny

As investment in training continues to rise, with resources migrating away from in-house programs, employers are demanding better accounting to ensure that their development dollars go toward furthering strategic goals and bolstering the bottom line.

Technology and global competition, the two driving forces of economic change in today’s business world, haven’t bypassed the once-staid world of training and development. Companies seeking to gain advantage through better-trained and better-developed workers are employing everything from e-learning delivery systems to multicultural and polyglot training solutions. They are hiring chief learning officers to deal with the increasingly complex field. And they are demanding better accounting of results.

    Jack Kramer, vice president of global alliances for Sum Total Systems of Mountain View, California, says that every training effort--from the most sophisticated leadership course to the most basic regulatory compliance training module--is being rigorously vetted for more than just content.

    "They want to know, ‘What is the financial impact?’ “Kramer says.” ‘Have you cut costs? Have you solved compliance issues? Have you assimilated learning into company operations?’ "

    Yet despite the focus on efficiency and cost control, overall spending on training and development continues to raise, a reflection of the fact that companies are ratcheting up the amount of training they require of their workers in the ceaseless drive for a competitive edge. Companies clearly subscribe to the belief that smarter, better-trained workers increase chances for success.

    "We are seeing spending continue to rise," says Pat Galagan, vice president of content for the American Society for Training & Development. "The thing we are noticing is that companies are working to get more efficiency, more effectiveness and better alignment out of training. It means they are doing an enterprise accounting of learning expenditures."

    ASTD’s tracking of expenditures shows that the push toward more spending on training and development has been consistent throughout this decade. According to ASTD’s latest "State of the Industry Report," issued in December, annual spending on training and development by companies and other organizations rose to $955 per employee in 2004 and was projected to reach $1,000 in 2005. In 2000, the total stood at $649. The average number of annual learning hours per employee, which was 24 in 2000, reached 32 in 2004 and was projected to hit 34 in 2005. Training and development budgets now gobble up anywhere from 2.25 percent to 3 percent of payrolls.

    Where is that money being spent? Despite the rise of outside vendors who promise to deliver training modules more cheaply, the bulk of training is still done in-house.

    "Organizations tend to outsource things that can be standardized and keep inside things that are special, unique or have a competitive advantage," ASTD’s Galagan says. "Definitely most training is still internal."

    Still, the amount of training that can be outsourced has yet to peak, thanks in part to the ever-changing and rising need to meet mandates for training in subjects like worker safety or financial reporting. Vendors predict that their businesses will enjoy years of continued growth.

    According to the ASTD report, in-house training and development is still by far the place where the most dollars are spent. But it commands a shrinking share. In-house spending declined from 66.8 percent of total spending in 2000 to a projected 57.4 percent for 2005. At the same time, outsourcing rose from 22.2 percent of total spending in 2000 to a projected 29.1 percent in 2005. (Tuition reimbursement, the other major use of training and development money, rose modestly, from 11 percent in 2000 to 13.5 percent in 2005.)


Training In Various Industries

1)Training in News Center


The news industry, traditionally untroubled about staff development, is taking a new look. In today’s multimedia world, industry leaders feel heightened competition for the best and brightest employees. Economists predict an acute shortage of “knowledge workers.” Starting salaries for journalists, stagnant for decades, have begun to creep upward. Industry attrition also is climbing, and an increasingly professional journalism workforce wants – and is starting to get – more training and mid-career education.

The same information revolution that draws away journalistic talent also siphons off the attention of audiences. But a growing body of research, as well as the experience of many news leaders, shows that improving staff development and training can help news organizations improve the quality of their journalism to keep and even expand audiences.

Benefits include:

  1. Journalists with learning and development opportunities stay with organizations longer. Higher employee retention both saves money and strengthens readership.
  2. News organizations with strong training and education programs enjoy a greater chance of success in creating newsroom diversity and reaching wider audiences.
  3. A learning newsroom is more likely to have a constructive culture, increasing performance.
  4. Skill, topic and value training all help journalists provide greater editorial quality.

1. Journalists with learning and development opportunities stay with organizations longer. Higher employee retention both saves money and strengthens readership.

Average turnover across America’s newsrooms, historically low compared to other non-manufacturing industries, climbed in the 1990s as Internet and other opportunities lured many journalists away from traditional media. By 2000, newsroom turnover in the newspaper industry averaged 15 percent, about the same average found across industry nationally.

“Newspapers feel they are dealing with a mounting crisis in getting and keeping good people,” the Media Management Center’s Readership Institute reported in 2000. “In countless conversations with newspaper executives, two themes recur: ‘We’ve got candidates for jobs, but we don’t seem to be getting the cream of the crop any more,’ and ‘we keep losing the people we can’t afford to lose.’”

Recruiting and retention challenges are likely to increase. The middle-aged baby boomers who make up the largest portion of the news industry will retire in the first quarter of the 21st century. The worker group that follows is smaller and less likely to be loyal to any organization that does not provide challenges and development opportunities.

“We are about to face a demographically driven shortfall in labor that will make the late 1990s seem like a minor irritation,” Anthony Carnevale, former chairman of the National Commission for Employment Policy, told Business 2.0 magazine in September 2003.

This will worsen what the Readership Institute calls the”hidden” business cost of turnover, the relationship between high-turnover staffs and high-turnover readership.

“Difficulties in recruiting and keeping talented workers come at a time when levels of readership and share of advertising continue to slowly but steadily erode. New research shows these issues are linked – that high turnover can depress reader satisfaction, readership and how people perceive the newspaper’s brand,” the Readership Institute said after its Impact Study of 100 newspapers.

“That alone is a compelling opportunity for newspapers to focus on getting and keeping the best.”

The Readership Institute identifies development and learning activities as critical to retaining staff and building a dynamic workforce.

Newsrooms do not typically track or report their turnover rates or link them to staff development activities. In those that do, however, there appear clear relationships between staff development and turnover.

The 2002 study “Newsroom Training: Where’s the Investment?” underscored that improved opportunities for training and development will be critical to the retention of journalists in all media as the economy opens up. Though three in 10 journalists told researchers they received regular training, an even greater number – a full third of those surveyed – expressed dissatisfaction with training opportunities. The lack of training outranked even compensation and lack of opportunities for promotion among the journalists surveyed.

The survey, co-sponsored by the Council of National Journalism Organizations and the Knight Foundation, estimated that the news industry spends .07 percent of payroll annually on training and staff development, when industries generally spend three times that amount and some high-performing corporations spend 10 to 20 times that amount.

2. News organizations with strong training and education programs enjoy a greater chance of success in creating newsroom diversity and reaching wider audiences.

The news industry hopes to keep and expand its audience in an increasingly diverse nation, yet it struggles to keep and expand the number of women and journalists of color in its newsrooms.

Journalists of color who leave the profession generally cite a lack of professional challenge and a lack of opportunities for advancement.

Improved training and professional development has been an important factor at the relatively few dailies that have achieved racial parity with their communities.

Past surveys show journalists of color joined by both women and young journalists as being statistically more likely to want to leave a job if it does not offer a chance to learn and grow. News industry efforts to reach younger news consumers as well as female consumers also can be hampered by a lack of training and staff development.

3. A learning newsroom is more likely to have a constructive culture, increasing performance.

Staff development – investments that enhance an individual’s skills, knowledge and behavior – strengthens companies by doing more than reducing turnover.

Organizations with constructive, learning workplace cultures tend to do better in the marketplace. In the news industry, Readership Institute research has stressed that the “defensive” cultures of most newsrooms are a primary obstacle to growing audience.

The Southern Newspaper Publishers Association recently faced both of these factors – a constructive need to add training and defensive budget cuts during the recent recession – and fashioned a creative solution to increase staff development opportunities for its member newspapers, many of which are the small newsrooms most in need of training.

Inspired by the “Cox Academy,” which provides newsroom training for regional clusters of Cox newspapers, SNPA developed a “traveling campus” program to offer weekend training at 20 sites per year, reachable by car by any member.

In 2002, more than 7,600 newspaper employees attended the traveling seminars, nearly as many people in one year as the SNPA foundation had trained in the previous 32 years. By the end of 2003, the organization’s members had pledged $8 million of a $10 million endowment needed to permanently fund the training.

4. Skill, topic and value training all help journalists provide greater editorial quality.

News industry leaders say they can compete only with relevant, credible content. These key elements of editorial quality – and of any quality news brand – rely increasingly on the skill, knowledge and ethics of the staff.

The Readership Institute points to newspaper craft skills such as writing, photography, graphics and page design as keys to increasing reader satisfaction. Recommending improved technique is one thing, putting it into place is another. That’s where increased and improved training and development comes in.

Similarly, news organizations struggle to provide content that is relevant across a wider audience that includes young people and people of color. Updating knowledge and expertise – whether it is community knowledge or specialized knowledge in business, science, health, and law – is essential to this process. Newsrooms with a high commitment to training already know and practice this. The challenge is to find practical ways to increase the capacity of newsrooms of all sizes to know and practice it.

Recent events have shown that credibility is a vital yet fragile force in any news organization. Ongoing training and staff development around values and ethics is needed as market forces increase pressure on standards. Indeed, when journalists say they want training, they refer to all three types – skills, knowledge and ethics.

In newsrooms, journalists consistently say they need more training to do their jobs. The national training survey found surprising harmony -- eight in 10 journalists believe they need more training to keep up with changing demands, and nine in 10 news executives agreed.

2 Training in Call Centers


Top Four blunders in Training

This is big questions that will the Outsourcing Trend continue to survive with falling training standards?

What's the bottom line? Call Center Employers will regret slashing their training budgets to save a few dollars. For a small investment, employers can protect themselves and save hundreds of thousands of dollars in costs. Below are the top four training blunders that many employers make and later regret.

Blunder #1: They distribute training policies and that's all they need to do.
Distributing a company/induction/training policy is not sufficient to show workforce that a company has met its legal obligation to train its workforce and create an educated work-environment. Also, line managers - the people in the trenches and making their daily employment decisions - are the best hope of creating a energetic & learning workplace. Therefore, it is very important to train the management staff so they can "spot the issue," recognize a situation involving a issue and seek help from HR.

Blunder #2: They fine since they had training six months ago.
In order to use training as a defense tool, companies must verify that each and every worker received training. All companies experience turnover and absenteeism problems, which undermine training effectiveness. Therefore, companies should receive written or electronic training verifications and audit those verifications ANNUALLY to ensure legally defensible training. Compliance training loses significant value if the company is not able to present tracking information and documentation showing that each of their workers received annual training. Also, many employers experience the all too common scenario where they know they provided training, they know the employee likely attended the training - but they cannot prove it for lack of documentation. The company shouldn’t make such mistake.

Blunder #3: the company has an HR assistant conduct training workshops.
A company needs to rely on the quality and effectiveness of its training. Otherwise, why do it? Using an in-house trainer can be difficult if the person lacks expertise or credibility within the organization. The trainer must be a senior executive or an outside professional to gain the respect and attention of the training participants. Also, companies should have a qualified expert conduct the training - a person who can also provide training testimony in the event the training is ever legally challenged.

Blunder #4: the company always want in-person training rather than Web-based and they can't afford it this year.

A blended learning solution (combining in-person and Web-based) is the most comprehensive and effective training solution. However, some Web-based programs can also be an effective stand-alone solution. For example, in-person training costs about 4000 to 5000 per person just for the training. That does not account for ancillary expenses such as travel costs, staff costs or lost productivity/opportunity costs. In contrast, Web-based training can cost as little as 3000 per person, without any hidden costs.

The call center employers need to devote energy and resources to their employees more than ever before in order to maintain a productively workplace amidst this recession and the poor morale pervading the marketplace. 



The employers should keep in mind these four rules of thumb when designing the company’s strategy and solution:

Rule #1: Internet technology is the key to a profound revolution in learning.
The effects of Internet technology on employee training are indeed profound; however, technology - any technology - should be seen as a tool, not a strategy or final goal. Just because they have good word processing software doesn't mean you write well. Likewise, the Internet cannot, in and of itself, improve the quality of the learning and the content they put on it. The employers need to use Internet technology combined with high quality, effective learning to maximize learning and retention levels.

Rule #2: There is an enduring and important role for traditional classroom instruction.
People who believe technology will totally replace great teachers in front of classrooms of highly motivated learners are as misguided as those who believe the Internet is a passing fad. The blended learning solution, i.e., a mixture of classroom and Web-based training is the most effective and comprehensive learning strategy.

Rule #3: Learning is a continuous, cultural process - not simply a series of workshops.
Employees retain about 50% to 60% of what they learn in a formal training workshop. Often, employees forget what they have learned within two months of the workshop. Therefore, access and opportunities to learn should be available to anyone, anywhere, and at any time within an organization. Organizational learning is as much about what happens outside formal learning programs as it is about the programs themselves.

Rule #4: Strategy development and implementation are never really finished.
Employers change as their business changes. They adjust it as their people become more skilled and knowledgeable. The employers redefine it as new technology options become available. And, they constantly test it against the mission and vision of their business, making sure they are always in alignment.

 Due to training there is greater stability, flexibility and capacity for growth in an organization. Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well. Future needs of employees will be met through training and development programmes. Organizational take fresh diploma holders or graduates as apprentices or management trainees. They are absorbed after course completion. Training serves as an effective source of recruitment. Training is an investment in HR with a promise of better returns in future. Though no single training programme yields all the benefits the organization which devotes itself to training and development enhances its HR capabilities and strengthens its competitive edge. At the same time, the employee’s personal goals are furthered, generally adding to his or her abilities and value to the employer. Ultimately, the objectives of the HR department and also of the organization are also furthered.


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