Annual Training Industry Survey
Budget and Staffing Cuts Continue
The Bersin & Associates Annual Training Industry Survey is interesting; visit their website for more details. Some salient points:
In 2009, the faltering U.S. economy continued to take its toll on training organizations. Companies cut their L&D budgets by another 11 percent from 2008 levels, with median spending falling to $714 per learner. Combined with the budget reductions that occurred in 2008, training budgets have fallen a total of 21 percent over the past two years. Spending was down across all company size categories. Small companies cut their L&D spending by 10 percent; midsize companies cut 11 percent and large companies cut 12 percent of their L&D spending.
Many L&D organizations also shed jobs in 2009. The median L&D staff fell from 7.0 staff per 1,000 learners in 2008 to 6.2 in 2009. Small businesses reduced their training staffs by four percent, while midsize firms cut five percent and large companies cut eight percent of their L&D headcount.
These budget and staffing figures show that large businesses have taken the hardest hit in 2009. Large companies generally have more “fat” to cut, with more L&D program offerings and more L&D staff playing specialized roles. Although they are often slower to respond to economic changes, they are assessing – and cutting now. As part of these cost-cutting efforts, many large companies are centralizing their training operations and moving toward a shared services model.
The Bersin & Associates Annual Training Industry Survey is interesting; visit their website for more details. Some salient points:
In 2009, the faltering U.S. economy continued to take its toll on training organizations. Companies cut their L&D budgets by another 11 percent from 2008 levels, with median spending falling to $714 per learner. Combined with the budget reductions that occurred in 2008, training budgets have fallen a total of 21 percent over the past two years. Spending was down across all company size categories. Small companies cut their L&D spending by 10 percent; midsize companies cut 11 percent and large companies cut 12 percent of their L&D spending.
Many L&D organizations also shed jobs in 2009. The median L&D staff fell from 7.0 staff per 1,000 learners in 2008 to 6.2 in 2009. Small businesses reduced their training staffs by four percent, while midsize firms cut five percent and large companies cut eight percent of their L&D headcount.
These budget and staffing figures show that large businesses have taken the hardest hit in 2009. Large companies generally have more “fat” to cut, with more L&D program offerings and more L&D staff playing specialized roles. Although they are often slower to respond to economic changes, they are assessing – and cutting now. As part of these cost-cutting efforts, many large companies are centralizing their training operations and moving toward a shared services model.
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