How vital is your Learning and Development function to your organization’s retention strategy? If the answer is “not much,” you might want to reassess. Research by LinkedIn says that 93 percent of employees would stay longer if their employer invested in their careers through development opportunities. This same survey identified relational (or “soft” skills, also referred to as foundational skills) as more important than hard skills. The top four skills identified were leadership, communication, time management and collaboration. Training, learning, and development are no longer job perks. They are operational necessities.
So how does your organization compare to others in the investment you make into Learning and Development? Recently, we released our 2019 Employers Council Member Training Practices Survey. The full survey and results can be found in the Members Only portion of the website. Some results to consider as you finalize your 2020 Learning and Development Plans:
- Survey respondents estimated that their training budgets were approximately 1% of their operating budget or about 1.7% of their payroll.
- 58% of respondents reported spending “about the same” in 2019 as they did in 2018, and 53 percent reported that their 2020 budgets would likely be “about the same” as 2019. Those spending less in 2019 (about 9 percent) reported issues related to flattening their business, new business initiatives, and costs of turnover as some of their primary reasons for investing less in training.
- The largest portion of respondents’ training budget (35 percent) was allocated to non-exempt employees. This has steadily increased since 2012 (28 percent). Investments in Management (28 percent) has remained relatively flat for the past seven years.
- Of the various elements associated with training budgets (seminars, conferences, hardware, outside services, etc.), the largest portion was seminars/conferences ($21,944), but down from 2017 ($24,856).
- Use of Computer Based Training has been steadily increasing over the past seven years (12 percent in 2012 and 17 percent in 2019). Instructor-Led training still continues to be the primary delivery method (43 percent), but has declined from 2012 (48 percent).
- Sixty-three percent of respondents identified live classroom instruction as “somewhat important”/“essential to their employee development strategy.” This was down from 74 percent in 2017.
- Finally, respondents continue to use a wide variety of support approaches and technologies pre- during, and post-training. These include on-the-job, mentoring, webinars, social learning, and video conferencing.
For more information be sure to download the full report. Also, if you are in the process of planning your 2020 learning and development priorities, please do not hesitate to reach out to our Organizational Development and Learning team at Employers Council. We would be happy to set up a meeting with you to discuss your priorities and help you identify a plan that best fits your needs.