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Training Industry Facts and Statistics

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Last Updated on 16/01/2022 by tdh.us.hrdk

Training is an important part of an organization’s success because it aids in the development of employees’ overall skills. Companies’ internal training programmes are a wonderful approach to ensure that their employees contribute their full potential in a timely and effective manner. The covid-19 epidemic has forced all employees to become more dynamic and adaptable to shifting working conditions.

Overview

  1.  According to the 2019 Training Industry report, small, midsize, and large businesses in the United States choose instructor-led or classroom-based training.
  2. 44% of small companies prefer to deliver training with the help of an instructor in a classroom setting, also called instructor-led training.
  3. Blended learning and virtual classrooms are used by 27% of small businesses.
  4. 39% of midsize companies use a classroom-led approach to training, 25% blended learning methods, and 17% utilize virtual classrooms.
  5. 36% of large companies use classroom-led training and 34% use a blended learning approach.
  6. Large companies (32%) are also more likely to utilize computer-based or online learning methods.
  7. Midsize companies (6%) use more mobile-based learning more than small (5%) and large companies (4%).
  8. 68% of employees prefer to learn or train in the workplace.
  9. 58% of employees prefer to learn or train at their speed.
  10. When it comes to learning or training, 49% of employees prefer to do so only when it is really necessary.
  11. 39% of employees in the U.S. consider the potential for growth as a contributor to employee satisfaction (Levanon et al., 2019).
  12. According to LinkedIn’s 2018 Workplace Learning Trends, 94 percent of employees would prefer to work for a company that invests in their professional growth.
  13. 70% of companies provide some form of training, particularly for personnel in management and mid-level jobs (U.S. Department of Labor, 2014).
  14. 9.7% of organizations mainly use an instructor-led classroom approach when training their employees.
  15. 38.1% of companies use instructor-led methods only for 10% to 29% of training.
  16. Organizations that invest in successful staff training and development get immediate and long-term results (Yazdanifard et al., 2013)
  17. The effectiveness of training is determined by a number of factors, and determining student preferences is crucial in determining the optimal training approaches (Training Industry, 2017).
  18. In 2016, employees rated on-the-job training (82%) as the most effective training approach, followed by on-the-job mentoring (19%) and informal social learning (71%).
  19. Simulation (70%), performance support tools (68%), and formal coaching (65%) were also identified as useful training modalities but were not utilized more often.
  20. Virtual instructor-led training and webinars are frequently used, but employees find them less beneficial.
  21. Nearly 59% of employees claim they had no workplace training and that most of their skills were self-taught.
  22. To stay employed, 74% of workers are eager to learn new skills or retrain.
  23. 87% of millennials believe learning and development in the workplace are important.
  24. When it comes to selecting whether or not to apply for a job, 59 percent of millennials say development possibilities are extremely important.
  25. Only 29% of employees are “very pleased” with their existing career growth chances inside their company.
  26. Despite the fact that 41% of employees regard job-specific training to be extremely important, only 34% of employees are very satisfied with it.
  27. Because of a dearth of development chances, 74 percent of questioned employees believe they aren’t realising their full potential at work.
  28. Career growth opportunities are a very important aspect for 41% of employees when it comes to job satisfaction at their company.
  29. Professional development opportunities are viewed as one of the most significant parts of corporate culture by 76 percent of millennials.
  30. 76% of employees say that a company would be more appealing if it offered additional skills training to its staff.
  31. To some extent, 59 percent of employees invest in their own upskilling.
  32. 61% of adults in the United States seek career development opportunities when considering job opportunities.
Training Industry Facts and Statistics 1

Top 3 skills prioritized by learning and development professionals in 2020

  1. This year, leadership and management receive the highest priority in skill training, accounting for 57% of the total.
  2. Creative problem solving and design thinking amounts to 42%
  3. Communication skills account for 40% of the total 
  4. Creativity, persuasion, teamwork, flexibility, and emotional intelligence are the top five soft skills that businesses should prioritise in 2020.
  5. The top five hard skills companies should focus on this year are blockchain, cloud computing, analytical reasoning, artificial intelligence, and UX design (Van Nuys, 2019).
  6. Cloud computing is the talent with the lowest priority in 2020, at only 8%.

Lowest priority skills of learning and development professionals in 2020

  1. Mobile and computing development was desired only 9% in 2020
  2. Engineering and coding came out to be only 8%
  3. Cloud computing is an aggregate of 8%

The shift towards online training modes

  1. Online learning solutions, on the other hand, are on the rise and are more favoured by talent development since they are more flexible, taking into account employees’ schedules and learning pace (LinkedIN Learning, 2018)
  2. 80% of organizations do some compliance training online and 29% entirely online.
  3. 81 percent of firms also perform sales training primarily online.
  4. 73 percent of firms use the internet for profession/industry-specific training, such as desktop software and IT systems.
  5. Only 43% of organizations use online methods for executive development training.
  6. Learning management systems, or LMS, were the most widely utilised technology in 2019, with 82 percent of businesses adopting them. Ninety percent of large and midsize organizations use LMS compared to 71% of small companies.
  7. 75% of organizations use virtual classrooms and webcasting for online training.
  8. 34% of organizations included mobile applications in their employee training programs.
  9. According to a 2020 CompTIA poll of HR and training leaders, 44% of respondents utilise mobile apps, and 39% are interested in learning more about the technology.
  10. In staff training, 23% of big organisations use virtual reality, 11% use augmented reality, and 9% use artificial intelligence technology.
  11. Only 5% or less of small companies incorporate VR, AR, and AI technology in their training methods.
  12. The share of enterprises in the United States that anticipate to engage training providers in upskilling and reskilling their staff from 2018 to 2022 is depicted in an insight report by the World Economic Forum titled The Future of Jobs Report 2018.
  13. 52% of respondents expected to reskill or upskill employees by 2022 by using internal resources.
  14. Private training providers and educational institutions would also be utilized by 27% and 21% of respondents, respectively.
  15. For training, 17% of respondents said they would choose public training providers and public educational institutions.
  16. In 2020, large corporations are expected to outsource more than medium and small businesses.
  17. In 2020, 51% of learning and development professionals intend to start upskilling programmes.
  18. 43% of learning and development professionals plan to launch reskilling programs in the future.
  19. Training providers, including business schools, computer, and management training firms, will experience a continuous increase in revenue, which is expected to reach approximately $14.2 billion by 2023 (Huhn, 2019).

Learning and development professionals who expect AI and machine learning to enhance personalization and learning content recommendations

Asia Pacific- 50%

Europe- 40%

North America- 37%

Employee Training Challenges and Effectiveness

  1. The LinkedIn 2020 Workplace Learning Report revealed that the biggest challenge to employee training is making managers prioritize employee learning and training not just in the U.S. and North America but the rest of the world.
  2. Getting managers to emphasise learning is the top problem for talent developers in 2020, according to 49% of them.
  3. Creating a culture of learning comes at the second spot with 42% of talent developers saying that this is one of the biggest challenges they have to face this year.
  4. Driving learner engagement is also a big difficulty, according to 36% of talent developer respondents.
  5. One of the problems in delivering effective training programmes, according to a CompTIA poll published in CompTIA Workforce Learning Trends 2020, is a lack of leadership from the businesses’ end (CompTIA, 2020)
  6. 35% of senior HR staff believe that learning and development are a “mostly strategic priority” compared to 22% of junior HR staff.
  7. 10% of junior HR staff would say that learning and development is an “operational cost.”
  8. Lack of time is the number one reason that holds employees back from pursuing further learning or training in 2018.
  9. 44% of Gen Z employees would spend more time learning or training if they receive recognition from their managers compared to 21% of Boomers.
  10. In the United States, one out of every two businesses lacks formal training initiatives to close the skills gap.
  11. 41% of HR staff, however, revealed that the real problem is the lack of resources.
  12. 39% of organizations claimed that insufficient budget is also a hindrance to adapting effective learning and development programs.
  13. Another research from Training Industry (2017) outlined the major problems encountered by learning leaders, including a critical challenge of learning experience across modalities or approaches.
  14. Multiple methods or modalities are used in delivering training programs. These modalities can either be classroom- or instructor-led, asynchronous e-learning, or a combination of both.
  15. 70% of learning leaders believe that utilizing more than one modality is crucial for training.
  16. In order to train their personnel, 52 percent of training programmes use three to six modalities.
  17. 30% of learning leaders provide some form of customization in the training programs offered.

Training Expenditure

Training
  1. The entire expenditure includes payments for facilities, technology, instructor salaries, and other training-related expenses that companies have set aside in their budgets.
  2. Employee training expenditures totaled $370.3 billion globally in 2019.
  3. In 2019, North America spent a total of 169.4 billion on staff training.
  4. In 2019, the expected total global investment on staff training, excluding the North American region, was $200.9 billion.
  5. In 2019, total training expenditures fell 5.3 percent to $83 billion.
  6. An average of $1,286 was invested per learner in 2019. Each employee had to train for an average of 42.1 hours in 2019.
  7. Non-exempt employees accounted for 39% of those trained in 2019, while executive jobs accounted for 10%.
  8. From 2009 to 2017, global investment on modern learning systems, on the other hand, increased.
  9. In 2017, North American businesses spent an estimated $97.6 billion on internal training resources.
  10. While internal training is still the preferred method, firms are increasingly turning to external services to fill the skills gaps that internal training programmes are unable to fill.
  11. Outsourcing accounted for an average of 8% of the training budget in 2019.
  12. Large corporations spent an average of $1.5 million on outsourced training services, compared to $70,908 spent by small businesses and $67,209 spent by midsized businesses.
  13. Companies are expected to spend about 61 percent on internal training resources and 39 percent on external or outsourced training service providers in 2018.
  14. According to another estimate, North American training firms spent $38.5 billion in 2017 on external training services (Training Industry, Inc., 2017).
  15. Spending on modern learning systems in North America fell from $161.7 billion in 2016 to $161.1 billion in 2017.
  16. Between 2015 and 2017, external training items, services, and tuition accounted for 40% of the North American training budget.
  17. Learning technology cost $3.2 billion, and training outsourcing cost $3.1 billion.
  18. External courses received $28.1 billion in 2016.

Conclusion

Training and upskilling are critical for an employee’s and organization’s long-term growth, which will result in profitable returns at a low cost. According to the statistics, the majority of working professionals choose offline/classroom learning, which appears to be at odds with the times we live in today. However, offices can resume and adapt their activities to the changing internal and external forces with caution.

TheDigitalHacker
TheDigitalHacker
TheDigitalHacker.com is a Google News-approved technology conglomerate research and publishing platform.
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