Did you know that corporate training spending trends are a strong indicator of economic activity? Good economic times mean that corporate training is back in a big way, and I bet there’s more you didn’t know about corporate training.
As one of the most discretionary spends in business, corporate training took a huge hit during the economic recession. The corporate world took a hiatus from training right when the skill gap reared its ugly head, and now we’re experiencing a huge need for quality training across the US.
Of the $62 billion dollars spent annually in the US on corporate training, more than 50% of all dollars go into technology, tools, coaching, and other "non-instructor led" solutions. (Source: Bersin by Deloitte)
E-learning is big right now and it’s only expected to grow in popularity for a ton of reasons. Going paperless is not only popular, it decreases any organization’s carbon footprint, and everyone can get on board with that. E-learning will require far less of the designated training team’s time and resources. This type of learning also allows for students or users to go at their own pace, never being held back by a group, or left behind.
Only 25% of respondents believe that their organizations are very effective at training or sourcing training. (Source: Trainers Advice)
Alright folks, this is a $130 billion business worldwide. Training needs to be treated the same way any other cost would be treated. There needs to be accountability worked into each step. For starters, training needs to be tracked and reported on. Secondly, all training sessions should end with employee feedback. If your program sucks, somebody has got to tell you! Thirdly, training software, content and all materials should be up-to-date and user friendly.
40% of survey respondents said that participating in an effective on-the-job training program, increased productivity, and 35% said it boosted employee morale. (Source: MindFlash)
It’s true! Employers that offer training will more often than not reap the benefits of higher engagement, lower turnover rates and even increased profitability. You know how coconut oil seems to be one of life’s cure-alls for the human body? We like to say that training is organizational coconut oil. It can have such a positive impact on all corners of the organization; some you might not even expect.
Research shows that organizations with highly mature learning and development functions for employees (also known as High-Impact Learning Organizations) spend 34% more than others. (Source: Bersin by Deloitte)
In our blog we talk a lot about the return when employers invest wisely in their employees. As the skill gap in the American workforce widens, we’re seeing corporate training in extremely high demand. That’s awesome, but great corporate training should be what employers are seeking. Don’t get me wrong, a great corporate training program, software and content doesn’t have to break the bank, but it does have to be chosen wisely for each organization’s unique needs.
How is your training program looking? Would nearly 75% of participants report that it is an ineffective program? That is currently the norm. So leaders have realized the need for training, but they might need a little help developing their programs and choosing their software.