Skip to Content

Corporate Training Soars – Here’s What It Means

Corporate-Training-Soars-Image

In February, Josh Bersin of Forbes Magazine wrote an interesting article on training and development titled, Spending on Corporate Training Soars: Employee Capabilities Now a Priority.  In the piece he took a look at the recent 2014 Corporate Learning Factbook study and did a pretty good job analyzing and summarizing the key parts.  We thought we’d boil down the article and study even more and provide a few highlights that show a strengthening economy and a recommitment to spending on learning and development:

  • US spending on corporate training grew by 15% last year – this is the highest growth rate in seven years
  • We spent over $70 billion in the US and over $130 billion worldwide
  • There has been a consecutive two-year acceleration of spending – this is due in large part to the tremendous skills gap in companies
  • The growth in spending in training is usually a good indicator of good economic activity as companies feel that their budget allows them to enhance their employees competencies
  • 70% of organizations cite “capability gaps” as one of their top five challenges
  • Many companies believe it actually takes 3-5 years for a seasoned professional to become fully productive through training and development
  • Spending on leadership development remains high and is the most pressing issuing on the minds of business and HR the study shows
  • High-performing companies who invest in a total L&D strategy spend more per employee than those who are inconsistent and that strategy seems to be paying off
  • As Millennials (1980-2001) take on more responsibility, companies need to build leadership skills at all levels.  With Millennials making up 50% of the workforce by 2020 and 75% by 2030 the need for new forms of training and development is becoming a reality
  • Technology like self-authored videos, online communication channels, virtual learning, and MOOCs is revolutionizing the L&D market.
  • People still need formal classroom education, but this is now less than half the total hours people consume in training around the world
  • Among the highly advanced companies, as much as 18% of all training is now delivered through mobile devices

A quick read this week, but hopefully you got some great nuggets, trends and encouragement from the post.

What is your 2014-2015 plan for training and development?  Where do you see your organization spending most of its L&D strategy?

No Responses to “Corporate Training Soars – Here’s What It Means” Leave a reply ›

Leave a Reply

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Who We Are

An innovative training and employee development firm located in southern Vermont since 1984, we specialize in helping organizations get the most out of their people by raising the bar, inspiring potential and partnering with organizations to build a people-centered, high-engagement culture.

Our Twitter Feed