A very interesting email landed in my inbox this week, offering me the chance to take a look at the Bersin UK corporate learning factbook for 2016. While I would of course encourage you to read the report for yourself, I thought it would be helpful to pull-out some of the golden nuggets.
1 - Spending on external training providers continues to fall
Outsourced services now only account for 14% of L&D (learning and development) spending. This contrasts to 41% in 2009 and 27% in 2012. In the case of 'large' organisations, this spend is increased slightly at 16%. As the economic recovery has taken effect, businesses are moving further into internal L&D, while generally increasing their investment in this area.
2 - L&D spending rebounds alongside the economy
Sticking with the economic theme, the report shows that increased confidence is baring fruit when it comes to L&D spend, with the UK average spend per employee coming in at £1,068. In the case of larger companies, this represents a 10% lift between 2015 and 2016, but it's the smaller businesses that lead the charge, with an increase of 16%. This is great news for employees and for the future of these organisations as they begin to invest more in their people.
3 - Training hours have increased
Between 2009 and 2012, organisations slashed employee training hours by close to 50% as the harsh realities of the recession came to light. This has now increased by 12% as businesses look to up-skill their teams in order to meet market demand. More positive advances!
4 - Online training now accounts for 1/4 of L&D delivery
The fact is that ILT (instructor-led training) continues to be the primary L&D delivery method, with 32% of training hours taking this form. That trend is shifting though and has dropped by 45% period-on-period since 2009. It's the case that organisations are looking for the right blend of delivery, and blending face-to-face with online learning is certainly something we advocate at Administrate.
All-in-all, a really positive picture for learning and development within UK organisations!
The need for training and management solutions
I'd like to revert to the first fact I covered in this post - the reduction of spend on external L&D support. As this trend increases, organisations will inevitably face challenges when it comes to training and learning management. Yes, budgets are up, however a true focus on efficiency must prevail - that's where a training and learning management system such as Administrate can make a huge difference. Pressure on in-house training teams will only increase as more employees learn new skills internally; having the right tools in place will be a hugely important factor in relieving that.
Our solution is designed with training administrators in mind, with the key aim of saving them time (and money!), which allows focus to shift towards delivering exceptional training. The right people blended with the best solutions is a winning combination.