A recent study by Bersin by Deloitte revealed that overall spending on training rose 15 percent to $1,169 per learner on average in 2013. The rise in training spending is a signal that businesses are responding to a growing skills gap as the economy recovers by investing more in employee development. The findings appear in Bersin by Deloitte’s new industry study, The Corporate Learning Factbook 2014: Benchmarks, Trends, and Analysis of the U.S. Training Market.
In a recent press release, Bersin by Deloitte reported more details on their study.
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“The problem many organizations face today is not a shortage of people, it is a shortage of key skills, especially those in engineering, scientific and technical fields,” said Karen O’Leonard, vice president, benchmarking and analytics research, Bersin by Deloitte, Deloitte Consulting LLP. “Businesses are responding by investing more. And in mature organizations, this investment is not just short-term training—it involves building a ‘supply chain’ of skills to fill these gaps for the long-term.”
Nearly 300 U.S. organizations participated in the study from October to December 2013.
Among the research study’s additional findings:
- Mature organizations spend 37 percent more. Organizations with mature, effective learning and development (L&D) functions spend $1,353 per learner on average, or 37 percent more than the least mature groups. Most of these organizations have also adopted a “continuous capability development” approach that makes them more innovative, responsive, and agile as their markets change. Learning in this model includes development planning, formal interventions, rotational assignments, coaching, mentoring, and much sharing and collaborative learning.
- Technology organizations invest more in development. Technology organizations spent $1,847 per learner on average, one of the highest of any industry sector. Several tech firms have made large investments for training their teams to evolve from product sellers to solution and industry experts. Other organizations in the technology space have transformed their engineering teams to focus on new products in consumer electronics, Big Data, telecommunications, and cybersecurity.
- Leadership development claims the largest budget share. The largest share of the L&D budget went to leadership development, with 35 cents of every training dollar, on average, spent on developing leaders at all levels. Leadership has become an even bigger issue as the economy recovers and many firms look to expand globally. More than 60 percent of all organizations cite “leadership gaps” as the top business challenge. (Bersin by Deloitte will publish more on this research in the first quarter of 2014.)
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To find out more about the full study, visit www.bersin.com/corporate-learning-factbook-2014.
Bersin by Deloitte delivers research-based people strategies designed to help leaders and their organizations in their efforts to deliver exceptional business performance. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent, and learning strategies. For more information, visit http://www.deloitte.com/bersin.