3 Reasons That Corporate Training Is Booming

Bersin by Deloitte recently released their 2014 Corporate Learning Factbook, and revealed that corporate training is in huge demand right now, and it is only expected to climb. The research showed a steady growth rate from 10% in 2011, 12% in 2012 and 15% in 2014.

As an LMS provider, this is great news, but it’s even better news for the organizations jumping on the training bandwagon. Because training is considered one of the most discretionary spends in business, the significant return of training is a very strong indicator that the economy and business are in a positive state. Here are the three reasons that corporate training in the US has become a $70 Billion industry.

No Money, No Training

When belts tighten, training is among the first things to go. That being said, when the economy makes the upward swing, a strong emphasis on training becomes immediate. In 2008 and 2009, at the height of the US economic recession, we saw corporate training spending dip down to -11%. By 2011, spending had increased by 21%. Bersin said:

“This is among the most discretionary of all corporate spending areas, so it is an excellent bellweather for business confidence.”

So what happened during that 21% drop in training spend? While the entire skill gap or talent shortage (whatever you want to call it) can’t be fully attributed to this significant dip in training, it certainly didn’t help matters.

The Skill Gap Is Significant

The study also took a look at just how real the skill gap is in today’s US workforce. The research revealed that over 70% of organizations cite “capability gaps” as one of their top five challenges.

For instance, a recent report from the Community for Advancing Discovery Research in Education revealed that employment in professional, scientific and tech services is projected to grow by 29% by 2020. It is also projected that of the two million new jobs this increase will produce, the majority of the will have be filled with talent from outside of the US. CEO of Goodwill Industries, Jim Gibbons said:

“Unfortunately, there’s no quick fix. Closing the skills gap will take a concerted effort and commitment to retraining and educating our workforce. We can only close the gap by comprehensively investing in workers of all ages — from students to seniors.”

Employers Prefer Internal Hires/Promotions

A recent survey of 400 employers, conducted by the College for America revealed a strong preference for the learning and development of existing employees into management roles rather than hiring new employees. Employers want to be able to promote from within, but the lack of appropriate skills in their workforce doesn’t allow for it. So leaders are embracing the importance of training. Internal promotions save on sourcing, recruiting and hiring costs, which can add up quite quickly. Training has its own associated costs, but they tend to yield a very high return on investment, as training is also linked to increased productivity, engagement and retention.

The corporate training boom is not only a symbol of a current positive economic state, it is also a catalyst for a strong economy to come. As training is welcomed back into the corporate world it brings with it a lot of solutions to our current workforce problems, like employee engagement lows, high turnover rates, poor customer care and the significant skill gap. Training is one of the most important and effective investments that leaders can make to drive success that will last.

(About the Author: Sean Pomeroy, CEO of Visibility Software, has worked in the Human Resources industry since he graduated from Radford University with a Bachelors in Psychology and a Master of Arts in Industrial/Organizational Psychology. After working in HR as a generalist for a government contracting company, he moved to the HR Technology arena and began assisting companies in the selection and implementation of HR software.)

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Igniting Social Learning: #TChat Preview

(Editorial Note: Want to read the RECAP of this week’s events? See Digging Deep into Social Learning #TChat Recap)

Social learning. Two simple words with so many meanings.

The TalentCulture community understands one meaning very well. After all, we exist is to encourage social learning among talent-minded professionals. But this week, we want to look more expansively at the role of learning in today’s social business environment.

Our mission is to unpack this concept collaboratively – sharing ideas and information about how and why social learning can make a meaningful difference for individual careers, as well as organizations.

We even have some heavy-hitter experts to help us see how leading-edge learning tools and techniques can transform business.

MichaelClarkWhat’s Your Learning Goal?

Yesterday, I started the conversation on by thinking aloud about 5 ways anyone can jump-start social learning. As I fleshed-out these thoughts, a key question kept coming to mind: When you pursue learning, what’s your purpose?

  • Are you learning, so you can teach?
  • Are you teaching so you can learn?
  • Are you learning for learning’s sake?
  • Or do you have other intentions?

What’s more, does your goal really matter? I think it does. Arguably, the most powerful learning experiences are fueled by purpose-driven passion.

Truth is, learning should propel us not just through school, not just through work, but through life. And when our personal quest for knowledge, skill and competence aligns with business goals, the results can make a meaningful difference.

#TChat Focus Topic: Let’s Get Social About Learning

Life is a continuous process of learning and skill development. And by nature, learning is a social activity. Throughout our lives we look to others – parents, teachers, mentors, managers, experts, peers and others – for information, instruction, insight, guidance and validation. It’s all part of the learning process.

So, what does it mean to apply emerging social tools and techniques to the process of continuous learning? And why does it matter? Let’s talk about it!

TChatRadio_logo_020813#TChat Radio

#TChat Radio – Tuesday, March 26 at 7:30pm ET / 4:30pm PT

Tune-in online and discover new ways to ignite professional and organization learning, as we interview Michael Clark, CEO of ReCenter, and Justin Mass, Sr. Manager of Learning Technology & Design at Adobe.

#TChat Twitter

#TChat Twitter – Wednesday, March 27 at 7pm ET / 4pm PT. Join our weekly online forum, and share your thoughts with others about these key questions:

Q1: How & why should we define social learning & talent development in the world of work?
Q2: How can we bridge today’s skills gap by connecting business with education?
Q3: We equate social learning with online learning, but is that view complete? Why/why not?
Q4: What are the most important technology platforms for social learning today?
Q5: What critical metrics should leaders should use to measure social learning & talent development?

Want to see more about this week’s topic? Watch Michael Clark, talk with TalentCulture community manager, Tim McDonald in this preview video on YouTube, or read Tim’s “Sneak Peek” blog post now.

Throughout the week, we’ll keep the discussion going on the #TChat Twitter stream and on our new LinkedIn Discussion Group. So please join us share your ideas and opinions.

We’ll see you on the stream!

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