Professional Documents
Culture Documents
INDUSTRY
REPORT
ABOUT THIS STUDY
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TRAINING EXPENDITURES
0 10 20 30 40 50
Average training expenditures for large companies increased $1.1 million; for small companies, it was $289,752.
from $17 million in 2017 to $19.7 million in 2018. The For those who reported an increase in their training staff, the
number for midsize companies rose $600,000 to $2.1 million average increase was six people, three more than in 2017. For
in 2018. But small companies decreased from $1 million to those who reported a decrease in their staff, the average decrease
$355,731 (back to slightly below the 2016 level). was 24 people—up from six last year, but two large companies
Some 36 percent of organizations said they increased staff reported a reduction of 300-plus trainers, skewing the average.
from the year before (up from 28 percent in 2017), while Other training expenditures decreased significantly this
52 percent said the level remained the same (down from 56 year to $29.6 billion from $44.5 billion in 2017. Such
percent in 2017). Some 12 percent said it was lower, down expenditures can include travel, training facilities, in-
from 16 percent in 2017. Large and midsize government/ house training development, and equipment. On average,
military organizations had the largest personnel costs. This organizations spent 11 percent of their budget or $235,077
year, midsize companies spent about a fifth as much as large (up from $135,837 last year) on learning tools and
companies, while small companies spent about one-quarter technologies. Large services organizations had the largest
as much as midsize ones. The average payroll figure for large budgets for learning tools ($1.3 million). Midsize government/
companies was $6.2 million; for midsize organizations, it was military organizations had the largest tool budget in their
$870
Midsize (1,000 to $941
9,999 employees) $858
$379
Large (10,000 or $399
more employees) $1,046
0 500 1000 1500 2000
0 10 20 30 40 50 60 70 80
size range ($230,758). Large retailers spent the smallest Overall, on average, companies spent $986 per learner this
percentage of their training budgets on tools and technologies year compared with $1,075 per learner in 2017. Government/
(1 percent). Looking ahead, the most frequently anticipated military organizations spent the most per learner this year
purchases are online learning tools and systems (41 percent ($1,433), followed by nonprofit organizations ($1,360).
vs. 40 percent last year), learning management systems (33 Midsize companies spent less ($858) than large ($1,046) and
percent vs. 39 percent last year), and classroom tools and small ($1,096) companies.
systems (which leaped into No. 3 with 32 percent vs. 28 While spending slightly less per learner, companies provided
percent last year). This is followed by content development almost the same number of hours of training as last year. On
at 31 percent and authoring tools/systems at 27 percent (vs. average, employees received 46.7 hours of training per year,
28 percent last year), certification (26 percent vs. 29 percent compared to 47.6 hours last year. Small companies provided the
last year), and mobile learning (24 percent vs. 23 percent most hours of training this year (61.2). Small services companies
last year). Several items received 10 percent or less of hits, had the highest average number of hours overall (81.8).
including audience response systems, enterprise learning Companies continued to devote the bulk of their training
systems, talent management administration, translation and expenditures to training non-exempt employees (39 percent
localization, and Web 2.0. vs. 42 percent last year).
TRAINING EXPENDITURES
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TRAINING DELIVERY
Some 69.3 percent of hours were delivered with blended devices, down from 3.6 percent in 2017. None of the
learning techniques, up significantly from 34.7 percent respondents used social learning only to delivery learning,
last year. the same as last year. And only 10.6 percent of companies
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from the 42 percent reported last year. mostly (90 to 100 percent of the time) by 9 percent of the
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computer-based technologies, down from 28.6 percent last 29 percent of their training. Small and midsize companies
year. Virtual classroom/Webcast accounted for 10.2 percent rely on blended delivery methods for a sizable amount of their
of hours delivered, down a bit from 14 percent last year. training (79 and 86 percent of hours, respectively) vs. 43
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2018 saw an increase in the average expenditure for training custom content development (60 percent some or completely
outsourcing: $422,321, up from $219,265 in 2017. Large outsourced for large companies; 53 percent for midsize ones;
companies on average spent $1.3 million vs. $216,657 for and 34 percent for small organizations).
midsize companies and $78,184 for small ones. An average The level of outsourcing is expected to stay relatively steady
of 14 percent of the total training budget was spent on in 2019—some 82 percent of organizations said they expect
outsourcing in 2018, doubling the 2017 percentage. to stay the same in the outsourcing area. The percentage of
On average, 26 percent of companies mostly or completely companies expecting to decrease outsourcing (11 percent)
outsourced LMS operations/hosting (down from 34 percent is higher than those expecting to use outsourcing more (7
last year), while LMS administration and learner support percent). Roughly half of respondents said they don’t plan
largely were handled in-house (77 percent). to outsource learner support or LMS administration in the next
Instruction/facilitation was handled equally in-house (46 12 months.
percent) and outsourced (54 percent). Across all the topic While there aren’t many differences between the outsourcing
areas, large companies outsourced only slightly more than changes by company size, small companies indicated they will
midsize ones, and midsize organizations outsourced more outsource slightly less across the board than large or midsize
than small companies. This effect was most striking for companies.
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