Posted by: Hysam Darwan | November 21, 2014

Spending on Corporate Training Soars: Employee Capabilities Now A Priority

US spending on corporate training grew by 15% last year (the highest growth rate in seven years) to over $70 Billion in the US and over $130 Billion worldwide.

This tremendous increase follows two years of accelerated spending in this area (10% in 2011 and 12% in 2012), illustrating how companies see tremendous skills gaps as we recover from the recession.

 

Why the rapid growth? All our research tells us that organizations today suffer from a “skills supply chain” challenge. Not only do more than 70% of organizations cite “capability gaps” as one of their top five challenges, but many companies also tell us that it takes 3-5 years to take a seasoned professional and make them fully productive.

  • Spending on leadership development remains very high.  As in prior years the research shows that the #1 areas of spending is management and leadership (35%). All our research on corporate talent shows that global leadership gaps continue to be the most pressing issues on the minds of business and HR leaders. As Millennials take on more responsibility, companies need to build leadership skills at all levels and in all geographies around the world. (Read more at:  Millennials Will Soon Rule the World.)

This is exciting news. While skills gaps (we call it the “supply chain of skills”) continue to challenge companies, an increased investment in training is good for everyone: employees, businesses, and job seekers. This level of increase shows that businesses are aggressively expanding and companies need skilled workers to grow.

Despite a tightening labor market for skills, this data predicts a good year ahead.

http://www.forbes.com/sites/joshbersin/2014/02/04/the-recovery-arrives-corporate-training-spend-skyrockets/


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