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?