The Corporate Learning Factbook 2014

Transcription

1 The Corporate Learning Factbook 2014 Benchmarks, Trends, and Analysis of the U.S. Training Market Karen O'Leonard Vice President Benchmarking & Analytics Research Bersin by Deloitte Deloitte Consulting LLP January 2014 Copyright 2014 Deloitte Development LLC. All rights reserved.

2 The Corporate Learning Factbook The Bersin WhatWorks Membership Program This document is part of the Bersin Research Library. Our research is provided exclusively to organizational members of the Bersin Research Program. Member organizations have access to an extensive library of learning and talent management related research. In addition, members also receive a variety of products and services to enable talent-related transformation within their organizations, including: Research Access to an extensive selection of research reports, such as methodologies, process models and frameworks, and comprehensive industry studies and case studies. Benchmarking These services cover a wide spectrum of HR and L&D metrics, customized by industry and company size. Tools Comprehensive tools for HR and L&D professionals, including tools for benchmarking, vendor and system selection, program design, program implementation, change management, and measurement. Analyst Support Via telephone or , our advisory services are supported by expert industry analysts who conduct our research. Strategic Advisory Services Expert support for custom-tailored projects. Member Roundtables A place where you can connect with other peers and industry leaders to discuss and learn about the latest industry trends and leading practices. IMPACT Conference: The Business Of Talent Attendance at special sessions of our annual IMPACT conference. Workshops Bersin analysts and advisors conduct onsite workshops on a wide range of topics to educate, inform, and inspire HR and L&D professionals and leaders. For more information about our membership program, please visit us at

3 The Corporate Learning Factbook TABLE OF CONTENTS Introduction 5 What Is New This Year? 5 Our Differentiation 6 A Special Thank You 7 Summary of Key Findings 8 1. A 15-Percent Boost in L&D Spending 8 2. Technology Companies Invest More in Development 9 3. Leadership Development Claims 35 Percent of Budget Mature Companies Spend 37 Percent More Twelve Percent of Learning Assets Are Mobile-Enabled 12 Measuring Your L&D Function 14 Appendix I: Study Methodology 17 Appendix II: Gathering Your Metrics 20 Definitions of Segments 21 Appendix III: Key Metrics U.S. Total and by Company Size 24 Appendix IV: Key Metrics by Industry 30 Appendix V: Key Metrics by L&D Maturity Level 36 Appendix VI: Table of Figures 42 About Us 43

4 The Corporate Learning Factbook Introduction Recognized as the training industry s most trusted source of data on training budgets, staffing, and programs, The Corporate Learning Factbook 2014 provides key benchmarks and valuable guidance to help learning and development (L&D) executives to make the right investment decisions. The study contains more than 300 metrics on training spending, headcount, resource allocations, and delivery methods broken out by company size, industry, and the maturity of the L&D organization. (See Figure 1.) With these detailed metrics, you can evaluate your learning organization against appropriate standards. What Is New This Year? KEY POINT This year, we brought back the questions on program spending allocations. This year, we made a few changes to the survey questions. We renewed the questions on program spending allocations, which were last reported in Corporate Learning Factbook In addition, one new question was added this year the percent of learning assets that are mobileenabled, or designed for use on ipads and other handheld devices. To accommodate these additions, we removed questions regarding spending on informal learning and outsourced services. These questions may be brought back next year. 1 For more information, The Corporate Learning Factbook 2012: Benchmarks, Trends and Analysis of the U.S. Training Market, Bersin & Associates / Karen O Leonard, January Available to research members at or for purchase at www. bersin.com/factbook.

5 The Corporate Learning Factbook Figure 1: L&D Benchmarking Metrics Training Spending Statistics Training Volume and Delivery Statistics Training expenditures per learner Annual training hours per learner Year-over-year change in training spend Cost per student hour Spending allocations for L&D staff payroll, learning technologies, and external learning services Percent of hours by delivery method Training Staffing Statistics Training Program Statistics Training staff-to-learner ratio Percent of spending by program area Year-over-year change in training headcount Percent of learning assets that are mobile-enabled Source: Bersin by Deloitte, Our Differentiation KEY POINT We use stringent quality control procedures to maintain valid data. We realize that there are a number of training benchmarking reports available today. What makes our study different? For one, our study contains a broad sample of respondents that provides an accurate representation of the U.S. training industry. We surveyed nearly 300 L&D organizations from a range of company sizes and industries. The data is weighted, so that the figures better represent the U.S. training market. Other studies available today include a small slice of the market or are based on small sample sizes which call into question the validity of the data. In addition, we use stringent quality control procedures in collecting and analyzing the data. Each respondent s answers have been checked for consistency. In cases for which data appeared to be inconsistent or out of range, the individuals were contacted for clarification and correction, or the responses were omitted from the survey analysis. This level of rigor is crucial to maintaining valid data.

6 The Corporate Learning Factbook A Special Thank You I want to thank all of the people who participated in this study. Without the diligent efforts of training managers and executives across the country, this report would not be possible. As always, I welcome your feedback on this report. Please feel free to contact me at koleonard@deloitte.com with any questions or comments. The input from our readers is vital in helping us to shape next year s study. Karen O Leonard Vice President, Benchmarking & Analytics Research Bersin by Deloitte

7 The Corporate Learning Factbook Summary of Key Findings 1. A 15-Percent Boost in L&D Spending The problem many organizations face today is not a shortage of people it is a shortage of key skills. In particular, the demand for skills in computer science, life sciences, mathematics, physical sciences, and engineering is growing at above-average rates. 2 In addition, the pace of technology change accelerates each year, creating even more demand for a highly educated workforce. KEY POINT U.S. businesses boosted their training budgets by 15 percent in Businesses are responding by investing more in employee development, with budgets increasing 15 percent in Much of this increase is driven by small businesses, whose budgets are up 22 percent over last year; large businesses saw a more modest increase of 6 percent. The largest budgetary gains came in the manufacturing sector, with an impressive 22 percent uptick in training spending. As manufacturers redesign products through software and automation, high-skill positions are increasingly in demand. The skills sets of many existing manufacturing workers need to be updated to meet this demand. Figure 2: Year-over-Year Change in Training Spending U.S to % 15% 12% 15% 10% 7% 6% 10% 5% 0% % % -10% -15% -11% -11% Source: Bersin by Deloitte, Source: Bureau of Labor Statistics, Fall 2012,

8 The Corporate Learning Factbook Technology Companies Invest More in Development KEY POINT Technology companies had the highest spending in 2013 at $1,847 per learner, on average. Organizations across the U.S. spent $1,169 per learner, on average 3, on L&D initiatives in But spending varies significantly by company size and industry. Technology companies, for example, spent $1,847 per learner, on average the highest of any industry sector that we studied. Technology firms (like Motorola Solutions, Adobe, IBM, and Xerox) have made large investments in training their teams to evolve from product sellers to solution and industry experts. Other companies in the technology space (like EMC and Cisco) have transformed their engineering teams to focus on new products in consumer electronics, Big Data, telecommunications, and cyber-security. Healthcare organizations, by contrast, spent just $516 per learner, on average. Much of the training in these organizations is developed and delivered by clinical staff, rather than the L&D organization making formal L&D spend relatively lower than in other sectors. Figure 3: L&D Spending per Learner by Industry 2013 Technology $ 1,847 Business Services / Consulting Financial Services Manufacturing $ 1,621 $ 1,338 $ 814 Healthcare $ 516 Source: Bersin by Deloitte, Note: Spending figures this year represent averages or means; figures in prior reports were calculated as medians.

9 The Corporate Learning Factbook Leadership Development Claims 35 Percent of Budget KEY POINT The largest share of the L&D budget, at 35 percent, goes to leadership development. The largest share of the L&D budget goes to leadership development, with 35 cents of every training dollar, on average, spent on developing leaders at all levels from first-line supervisors to executives. Leadership has always been important, but has become an even bigger issue as the economy recovers and many firms look to expand globally. Companies today are struggling to improve their leadership skills; more than 60 percent of all companies cite leadership gaps as their top business challenge. 4 The next highest area of spending involves profession- or industryspecific training, a category that includes development specific to an individual s role or profession. For example, accountants need training on new accounting and tax rules, software engineers need training on new software updates, and healthcare workers need training on new medical procedures and regulations. This training can be provided internally, or through outside courses or certification programs. Organizations spend 12 percent of their budgets, on average, on these types of training initiatives. 4 This information is based on our current research on the topic of human capital trends, the report for which is due to be published H

10 The Corporate Learning Factbook Figure 4: L&D Spending Allocations by Program Area U.S Total Leadership Development Profession or Industry-Specific Training 20% Management / Supervisory Training 12% 7% Executive Development 8% Other Leadership Development 35% Soft Skills 9% Sales Training 9% Regulatory or Compliance Training 8% Product Training 6% Customer Service Training 5% Process Training 5% IT and Systems Training 5% Desktop Application Training 3% Other Training 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: Bersin by Deloitte, Mature Companies Spend 37 Percent More KEY POINT Mature L&D organizations spend 37 percent more per learner, on average, and invest a greater proportion of funding on leadership development initiatives. Spending also differs by the maturity of the L&D organization. 5 Mature L&D organizations (those at Levels 3 and 4 of our maturity model) spend $1,353 per learner, on average 37 percent more than the least mature groups. We have found that L&D organizations allocate their budgets differently at each level as well. Organizations at Level 1 spend a greater proportion of their funds on regulatory, compliance, and job-specific training. As they mature to Level 2, many begin building their infrastructures; therefore, more funding goes to training on processes and systems. At Levels 3 and 4, organizations invest more in leadership development and function-specific training, such as sales and customer service training. 5 For more information, The High-Impact Learning Organization Maturity Model, Bersin & Associates / David Mallon, Janet Clarey and Mark Vickers, August Available to research members at or for purchase at

11 The Corporate Learning Factbook Most of these mature organizations have adopted a continuous capability development approach that makes them more innovative, responsive, and agile as their markets change. These companies have woven an entire tapestry of learning driven by a learning culture that permeates all levels of management. In this model, learning includes development planning, formal interventions, rotational assignments, coaching, mentoring, and lots of sharing and collaborative learning. Figure 5: L&D Spend per Learner by Maturity Level Level 1: Incidental Training $ 990 Level 2: L&D Excellence $ 1,071 Levels 3 & 4: Performance Improvement & Organizational Capability Development $ 1,353 Source: Bersin by Deloitte, Twelve Percent of Learning Assets Are Mobile-Enabled Given the ubiquitous nature of mobile technology, many L&D organizations are looking at designing programs specifically for use on mobile devices. As of yet, however, only 12 percent of learning assets today are mobile-enabled. Some industries are well ahead of the pack. Business services / consulting firms, with their large numbers of mobile workers, are leaders in this area at 22 percent. Not surprisingly, technology firms are also among the leaders, with 19 percent of learning assets mobile-enabled. But in other industries, the figures are much lower. Many organizations do not yet

12 The Corporate Learning Factbook have a staff with developers who are well-versed in the ins and outs of mobile learning. Although development can be outsourced, organizations do need the internal capability to recognize when mobile learning is the applicable solution for a performance or learning challenge. 6 Figure 6: Percent of Learning Assets That Are Mobile-Enabled U.S. Total and by Industry 2013 Business Services / Consulting 22% U.S. Total: 12% Technology 19% Healthcare 11% Financial Services 8% Manufacturing 7% Source: Bersin by Deloitte, For more information, Mobile Learning Cookbook: A How-to Guide for the What, Where, Why, and How of Mobile Learning, Bersin by Deloitte / Janet Clarey, April Available to research members at

13 The Corporate Learning Factbook Measuring Your L&D Function One of the strongest predictors of a high-impact learning organization is learning measurement. High-impact learning organizations understand that the purpose of measurement is to capture actionable information in order to improve the efficiency, effectiveness, and alignment of the entire L&D function. KEY POINT Comparing metrics with industry norms can help L&D leaders to pinpoint problem areas and make better investments. These organizations use a variety of metrics in their measurement efforts. Efficiency and consumption metrics, including those covered in this report, are useful for benchmarking against other organizations. Comparing these metrics against industry norms allows L&D leaders to pinpoint potential problem areas and make better investments. Other metrics (such as adoption, utility, alignment, attainment, and performance) are also critical to assessing and improving the L&D function. 7 (See Figure 7.) We hope that this report provides useful insights for your organization. These metrics can become part of a sound measurement strategy, putting your organization on a path to continually assessing and improving your L&D function. 7 For more information, The Impact Measurement Framework: An Update for the Measurement of Informal Learning, Bersin & Associates / Josh Bersin, May 3, Available to research members at

14 The Corporate Learning Factbook Figure 7: Bersin by Deloitte High-Impact Learning Measurement Framework Satisfaction Learning Adoption Did you reach the desired audience? Did they complete or comply as desired? Who did not comply and why? Utility How well do the programs solve the workforce s particular problems? How well did it align to the specific job related problems and issues? Would learners recommend this program to their peers? Efficiency How efficient and cost-effective was it? How did it compare to other similar programs or competitive programs? How well did it use the learner s time? Alignment How well were program business priorities defined? How well did business units buy in on the value of this program relative to other investments? Attainment How well did you meet specifically defined client (business user or customer) objectives? These may be revenue, time to market, compliance, time to complete, etc. Contribution Feedback Activity Individual Performance Organizational Performance Source: Bersin & Associates, 2012.

15 Appendix I Study Methodology Copyright 2014 Deloitte Development LLC. All rights reserved.

16 The Corporate Learning Factbook Appendix I: Study Methodology This year s study was conducted from October to December 2013, when contacts from the Bersin by Deloitte databases were ed invitations to participate in an online survey. Only U.S.-based organizations with 100 or more employees were included in the analysis. The final count of qualified respondents was 288. The data represents a broad cross-section of industries and company sizes. Note that the figures in this report are weighted by company size. Since small companies dominate the U.S. market, in terms of sheer numbers, these organizations receive a heavier weighting, so that the data more accurately reflects the U.S. market. When viewing overall figures, keep in mind that they are weighted in favor of smaller organizations. In our results, we break out the results by organization size to show the differences between small, midsize, and large organizations. Figure 8: Respondent Count (unweighted) Small companies ( employees) 76 Midsize (1,000 9,999 employees) 112 Large (10,000 or more employees) 100 Total respondents 288 Source: Bersin by Deloitte, 2013.

17 The Corporate Learning Factbook Figure 9: Respondent Count by Industry* (unweighted) Real Estate 1% Technology (computers, software, ISPs) 12% Retail 3% Telecommunications 2% Aerospace & Defense 3% Banking / Financial Services 11% Pharmaceuticals / Life Sciences 2% Other 8% Oil & Gas / Mining / Energy 2% Nonprofit 4% Manufacturing 15% Insurance 7% Business Services / Consulting 10% Consumer Products 1% Education 4% Government 2% Healthcare 9% Hospitality / Leisure / Travel 2% *Percentages may not total 100% due to rounding. Source: Bersin by Deloitte, 2013.

18 Appendix II Gathering Your Metrics Copyright 2014 Deloitte Development LLC. All rights reserved.

19 The Corporate Learning Factbook Appendix II: Gathering Your Metrics This study contains a wealth of data from which training executives can benchmark their organizations. Data is presented in summary tables in Appendices III through V. To make the most use of this report, we recommend that you gather the following figures for your organization: 1. Training Spending Figures include: Training staff payroll Learning products and services Learning tools and technologies Off-the-shelf content Travel and expenses for training staff Training staff development costs (including conferences and seminars) Training materials Facilities, food, and other expenses These figures do not include tuition reimbursement for outside degree programs, learner travel expenses, or learner time away from the office. In addition, these figures do not include the time or expenses of subjectmatter experts in developing or delivering training. 2. Number of Training Staff This includes all personnel assigned to the training function, such as training managers, instructors, content developers, administrative support, and additional personnel assigned to training. If a person spends a portion of his / her time on training, the portion of a full-time headcount is allocated and that person s salary is prorated for the above spending figure. Staffing figures do not include subject-matter experts or other personnel not directly assigned to the training function. 3. Annual Training Hours Consumed Total hours consumed by learners during the year. If this figure is not available in your learning management system (LMS), you may calculate the number as total annual course enrollments multiplied by the average course length or alternatively, the number of learners multiplied by an average number of hours per learner.

20 The Corporate Learning Factbook Number of Learners The number of employees targeted for training this fiscal year. Do not include external learners (such as customers, partners, and / or members). With these standard metrics, you can perform first-level benchmarks, comparing your organization with the data in this report. Ideally, you should benchmark your organization against its peers your competitors, or organizations of similar size and type. For these more detailed metrics, Bersin by Deloitte provides benchmarking services. For more information on these custom benchmarking services, please contact us. 8 Definitions of Segments 1. Company Size (number of employees worldwide, including all locations): Small companies: 100 to 999 employees Midsize companies: 1,000 to 9,999 employees Large companies: 10,000 or more employees 2. Industries: Financial Services (banking / insurance) Business Services / Consulting Healthcare (hospitals and healthcare organizations) Manufacturing (durable and non-durable goods, including automotive) Technology (computers, software, ISPs) 8 Benchmarking services are available through our research membership program or through our advisory services. For more information, please visit membership.

21 The Corporate Learning Factbook Maturity Levels 9 : Level 1: Incidental Training Level 2: L&D Excellence Levels 3 & 4: Performance Improvement and Organizational Capability Development Figure 10: Bersin by Deloitte High-Impact Learning Organization Maturity Model Level 4: Organizational Capability Development Focus on organizational capability Highly aligned with business executives Broad range of tools and capabilities L&D function may be smaller but very agile Highly focused on continuous and informal learning Understand audiences in detail Level 3: Talent and Performance Improvement Focus on talent and organizational performance Masters of performance consulting Recognize importance of management's role in development Can do more than deliver training Recognition of the role of learning culture Integration with talent management Measures performance results Level 2: Training and Development Excellence Focus on training excellence centralized L&D team or corporate university Focus on governance and operations Focus on instructional design A support function May have a CLO or vice president Traditional measurement models Some clear roles Evolving standards for content and delivery e-learning as a delivery type Mixed alignment with business Level 1: Incidental Training Focus on making work more productive No central L&D organization Training on the job Few or no L&D professionals Many reactive or tactical solutions in place Lack of standards Driven by local subjectmatter experts Some formal training, but lots of training activities Source: Bersin & Associates, For more information, The High-Impact Learning Organization Maturity Model, Bersin & Associates / David Mallon, Janet Clarey and Mark Vickers, August 2012.

22 Appendix III Key Metrics U.S. Total and by Company Size Copyright 2014 Deloitte Development LLC. All rights reserved.

23 The Corporate Learning Factbook Appendix III: Key Metrics U.S. Total and by Company Size This section contains tables of data for the U.S. aggregate and by company size, in terms of the number of employees worldwide. Beneath each figure are the definitions of each metric; please refer to Appendix II: Gathering Your Metrics for more details on what to include in certain benchmarks. Figure 11: Spending and Staffing Metrics U.S. Total and by Company Size Total L&D Spending per Learner Yearover-Year Change in L&D Spending L&D Staff per 1,000 Learners Yearover-Year Change in L&D Staffing L&D Payroll as Percent of Total Spend External Services as Percent of Total Spend Learning Technology as Percent of Total Spend U.S. Total $1,169 15% % 56% 9% 15% Small Companies ( Employees) $1,605 22% % 53% 8% 17% Midsize Companies (1,000 9,999 Employees) $880 11% 5.2 5% 56% 9% 13% Large Companies (10,000+ Employees) $760 6% 3.5 1% 60% 11% 15% Source: Bersin by Deloitte, Definitions: Spending and Staffing Metrics L&D Spending per Learner Total training spending (including budget, L&D staff payroll, technology, and external services) divided by the number of learners served. Figures reported are averages. See, Appendix II: Gathering Your Metrics, for details on calculating spending and learner figures. Year-over-Year Change in L&D Spending Average percent change in L&D budget from 2012 to 2013 (negative figures reflect a drop in training budget over the one-year period).

24 The Corporate Learning Factbook L&D Staff per 1,000 Learners Average number of training staff personnel for every 1,000 learners. Staff include training managers, instructors, developers, administrative support, and other persons assigned to the L&D function. If a person is spending only a fraction of their time on training-related activities, the portion of their time is allocated (e.g., 0.5 for half-time, etc.). Year-over-Year Change in L&D Staffing Average percent change in training headcount from 2012 to 2013 (negative figures reflect L&D headcount reductions over the one-year period). L&D Payroll as a Percent of Total Spend Average percent of total L&D spending spent on payroll (salaries and bonuses) for L&D staff. External Services as a Percent of Total Spend Average percent of total L&D spending spent on external (non-technology-related) products and services. Learning Technology as a Percent of Total Spend Average percent of total L&D spending spent on learning tools and technologies. Figure 12: Program Metrics U.S. Total and by Company Size Annual Training Hours per Learner Cost per Student Hour Percent of Learning Assets Mobile- Enabled Percent of Hours Delivered via ILT Percent of Hours Delivered via vilt Percent of Hours Delivered via Online Self-Study Percent of Hours Delivered via Experiential / On-the-Job Activities Percent of Hours Delivered via Collaboration / Feedback Percent of Hours Delivered via Other Methods U.S. Total 22.0 $80 12% 44% 12% 20% 15% 8% 1% Small Companies ( Employees) Midsize Companies (1,000 9,999 Employees) Large Companies (10,000+ Employees) 23.1 $101 14% 41% 13% 16% 17% 11% 3% 19.8 $71 11% 45% 10% 25% 14% 6% 0% 22.7 $50 10% 48% 11% 23% 12% 6% 0% Source: Bersin by Deloitte, 2013.

25 The Corporate Learning Factbook Definitions: Program Metrics Annual Training Hours per Learner Average number of formal training hours completed per learner. Cost per Student Hour Total training spending divided by total student hours consumed. Average figures are reported. Percent of Learning Assets Mobile-Enabled Average percent of learning assets that are designed for ipads, smartphones, tablets, or other handheld devices. Percent of Hours Delivered via ILT Average percent of training hours delivered via instructor-led classroom training. Percent of Hours Delivered via vilt Average percent of training hours delivered via virtual classroom training (remote instructor). Percent of Hours Delivered via Online Self-Study Average percent of training hours delivered via self-study web-based or computer-based training. Percent of Hours Delivered via Experiential / OTJ Activities Average percent of training hours delivered via experiential or on-the-job activities, which may include project assignments, rotations, etc. Percent of Spending of Hours Delivered via Collaboration / Feedback Average percent of training hours delivered via collaborative activities or feedback, which may include coaching, mentoring, communities of practice, etc. Percent of Hours Delivered via Other Methods Average percent of training hours delivered via other training methods, such as job-aids, books, and videos.

26 The Corporate Learning Factbook Figure 13: Spending Allocations by Program Area U.S. Total and by Company Size Executive Development Management or Supervisory Training Other Leadership Development Profession- or Industry-Specific Training Sales Training Product Training Customer Service Training Process Training Soft Skills IT & Systems Training Desktop Application Training Regulatory or Compliance Training Other Training U.S. Total 7% 20% 8% 12% 9% 6% 5% 5% 9% 5% 3% 8% 2% Small Companies ( Employees) 7% 19% 8% 14% 9% 5% 5% 5% 10% 6% 4% 8% 2% Midsize Companies (1,000 9,999 Employees) 7% 22% 8% 9% 10% 6% 5% 5% 10% 5% 2% 8% 3% Large Companies (10,000+ Employees) 9% 20% 9% 12% 8% 6% 6% 8% 7% 5% 2% 7% 2% Source: Bersin by Deloitte, Definitions: Spending Allocations by Program Area Executive Development Percent of training spending on executive development. Management or Supervisory Training Percent of training spending on management and supervisory training. Other Leadership Development Percent of training spending on other leadership development initiatives. Profession- or Industry-Specific Training Percent of training spending on professional or industry-specific development (e.g., engineering, accounting, healthcare). Sales Training Percent of training spending on sales training. Product Training Percent of training spending on product training. Customer Service Training Percent of training spending on customer service training.

27 The Corporate Learning Factbook Process Training Percent of training spending on process training (e.g., operations, quality, Six Sigma). Soft Skills Percent of training spending on interpersonal or soft skills training (e.g., communication, teamwork). IT and Systems Training Percent of training spending on IT and systems training (e.g., enterprise software). Desktop Application Training Percent of training spending on desktop application training. Regulatory or Compliance Training Percent of training spending on regulatory or compliance training (e.g., safety, harassment). Other Percent of training spending on other types of training.

28 Appendix IV Key Metrics by Industry Copyright 2014 Deloitte Development LLC. All rights reserved.

29 The Corporate Learning Factbook Appendix IV: Key Metrics by Industry This section contains tables of data by industry category. All data is weighted according to the Dun & Bradstreet distribution of companies. In this weighting scheme, smaller companies are given more weight, since they dominate the marketplace in terms of sheer numbers. Beneath each figure are the definitions of each metric; please refer to Appendix II: Gathering Your Metrics for more details on what to include in certain benchmarks. For more information on definitions of industry categories, see the "Definitions of Segments" section in "Appendix II: Gathering Your Metrics." Figure 14: Spending and Staffing Metrics By Industry L&D Spending per Learner Yearover-Year Change in L&D Spending L&D Staff per 1,000 Learners Yearover-Year Change in L&D Staffing L&D Payroll as Percent of Total Spend External Services as Percent of Total Spend Learning Technology as Percent of Total Spend Financial Services Business Services / Consulting $1,338 5% 7.0 7% 61% 8% 15% $1,621 14% % 52% 7% 19% Healthcare $516 15% % 69% 13% 14% Manufacturing $814 29% % 54% 7% 17% Technology $1,847 9% % 50% 5% 17% Source: Bersin by Deloitte, 2013.

30 The Corporate Learning Factbook Definitions: Spending and Staffing Metrics L&D Spending per Learner Total training spending (including budget, L&D staff payroll, technology, and external services) divided by the number of learners served. Figures reported are averages. See, Appendix II: Gathering Your Metrics, for details on calculating spending and learner figures. Year-over-Year Change in L&D Spending Average percent change in L&D budget from 2012 to 2013 (negative figures reflect a drop in training budget over the one-year period). L&D Staff per 1,000 Learners Average number of training staff personnel for every 1,000 learners. Staff include training managers, instructors, developers, administrative support, and other persons assigned to the L&D function. If a person is spending only a fraction of their time on training-related activities, the portion of their time is allocated (e.g., 0.5 for half-time, etc.). Year-over-Year Change in L&D Staffing Average percent change in training headcount from 2012 to 2013 (negative figures reflect L&D headcount reductions over the one-year period). L&D Payroll as a Percent of Total Spend Average percent of total L&D spending spent on payroll (salaries and bonuses) for L&D staff. External Services as a Percent of Total Spend Average percent of total L&D spending spent on external (non-technology-related) products and services. Learning Technology as a Percent of Total Spend Average percent of total L&D spending spent on learning tools and technologies.

31 The Corporate Learning Factbook Figure 15: Program Metrics By Industry Annual Training Hours per Learner Cost per Student Hour Percent of Learning Assets Mobile- Enabled Percent of Hours Delivered via ILT Percent of Hours Delivered via vilt Percent of Hours Delivered via Online Self-Study Percent of Hours Delivered via Experiential / On-the-Job Activities Percent of Hours Delivered via Collaboration / Feedback Percent of Hours Delivered via Other Methods Financial Services Business Services / Consulting $111 8% 48% 12% 24% 9% 7% 0% 24.7 $106 22% 33% 15% 16% 21% 14% 2% Healthcare 27.4 $48 11% 43% 9% 31% 12% 5% 1% Manufacturing 19.9 $51 7% 54% 9% 12% 16% 9% 0% Technology 27.2 $90 19% 39% 20% 20% 11% 9% 2% Source: Bersin by Deloitte, Definitions: Program Metrics Annual Training Hours per Learner Average number of formal training hours completed per learner. Cost per Student Hour Total training spending divided by total student hours consumed. Average figures are reported. Percent of Learning Assets Mobile-Enabled Average percent of learning assets that are designed for ipads, smartphones, tablets, or other handheld devices. Percent of Hours Delivered via ILT Average percent of training hours delivered via instructor-led classroom training. Percent of Hours Delivered via vilt Average percent of training hours delivered via virtual classroom training (remote instructor). Percent of Hours Delivered via Online Self-Study Average percent of training hours delivered via self-study web-based or computer-based training.

32 The Corporate Learning Factbook Percent of Hours Delivered via Experiential / OTJ Activities Average percent of training hours delivered via experiential or on-the-job activities, which may include project assignments, rotations, etc. Percent of Spending of Hours Delivered via Collaboration / Feedback Average percent of training hours delivered via collaborative activities or feedback, which may include coaching, mentoring, communities of practice, etc. Percent of Hours Delivered via Other Methods Average percent of training hours delivered via other training methods, such as job-aids, books, and videos. Figure 16: Spending Allocations by Program Area By Industry Executive Development Management or Supervisory Training Other Leadership Development Profession- or Industry-Specific Training Sales Training Product Training Customer Service Training Process Training Soft Skills IT & Systems Training Desktop Application Training Regulatory or Compliance Training Other Training Financial Services 8% 18% 6% 11% 12% 7% 8% 5% 6% 8% 3% 7% 3% Business Services / Consulting 9% 18% 12% 16% 11% 9% 6% 3% 6% 5% 3% 3% 1% Healthcare 4% 21% 7% 16% 3% 1% 7% 8% 10% 9% 3% 10% 1% Manufacturing 6% 22% 5% 10% 7% 6% 4% 9% 15% 3% 2% 10% 1% Technology 9% 19% 7% 11% 13% 9% 4% 5% 10% 5% 2% 5% 4% Source: Bersin by Deloitte, Definitions: Spending Allocations by Program Area Executive Development Percent of training spending on executive development. Management or Supervisory Training Percent of training spending on management and supervisory training.

33 The Corporate Learning Factbook Other Leadership Development Percent of training spending on other leadership development initiatives. Profession- or Industry-Specific Training Percent of training spending on professional or industry-specific development (e.g., engineering, accounting, healthcare). Sales Training Percent of training spending on sales training. Product Training Percent of training spending on product training. Customer Service Training Percent of training spending on customer service training. Process Training Percent of training spending on process training (e.g., operations, quality, Six Sigma). Soft Skills Percent of training spending on interpersonal or soft skills training (e.g., communication, teamwork). IT and Systems Training Percent of training spending on IT and systems training (e.g., enterprise software). Desktop Application Training Percent of training spending on desktop application training. Regulatory or Compliance Training Percent of training spending on regulatory or compliance training (e.g., safety, harassment). Other Percent of training spending on other types of training.

34 Appendix V Key Metrics by L&D Maturity Level Copyright 2014 Deloitte Development LLC. All rights reserved.

35 The Corporate Learning Factbook Appendix V: Key Metrics by L&D Maturity Level This section contains tables of data by the maturity of an organization s L&D function. Due to sample size constraints, we combined data for Maturity Levels 3 and 4. For more information on definitions of industry categories, see the "Definitions of Segments" section in "Appendix II: Gathering Your Metrics." Beneath each figure are the definitions of each metric; please refer to Appendix II: Gathering Your Metrics for more details on what to include in certain benchmarks. Figure 17: Spending and Staffing Metrics By Maturity Level Total L&D Spending per Learner Yearover-Year Change in L&D Spending L&D Staff per 1,000 Learners Yearover-Year Change in L&D Staffing L&D Payroll As Percent of Total Spend External Services As Percent of Total Spend Learning Technology As Percent of Total Spend Maturity Level 1 $990 16% 4.4 0% 54% 9% 11% Maturity Level 2 $1,071 19% % 56% 9% 23% Maturity Levels 3 & 4 $1,353 14% % 56% 9% 12% Source: Bersin by Deloitte, 2013.

36 The Corporate Learning Factbook Definitions: Spending and Staffing Metrics L&D Spending per Learner Total training spending (including budget, L&D staff payroll, technology, and external services) divided by the number of learners served. Figures reported are averages. See, Appendix II: Gathering Your Metrics, for details on calculating spending and learner figures. Year-over-Year Change in L&D Spending Average percent change in L&D budget from 2012 to 2013 (negative figures reflect a drop in training budget over the one-year period). L&D Staff per 1,000 Learners Average number of training staff personnel for every 1,000 learners. Staff include training managers, instructors, developers, administrative support, and other persons assigned to the L&D function. If a person is spending only a fraction of their time on training-related activities, the portion of their time is allocated (e.g., 0.5 for half-time, etc.). Year-over-Year Change in L&D Staffing Average percent change in training headcount from 2012 to 2013 (negative figures reflect L&D headcount reductions over the one-year period). L&D Payroll as a Percent of Total Spend Average percent of total L&D spending spent on payroll (salaries and bonuses) for L&D staff. External Services as a Percent of Total Spend Average percent of total L&D spending spent on external (non-technology-related) products and services. Learning Technology as a Percent of Total Spend Average percent of total L&D spending spent on learning tools and technologies.

37 The Corporate Learning Factbook Figure 18: Program Metrics By Maturity Level Annual Training Hours per Learner Cost per Student Hour Percent of Learning Assets Mobile- Enabled Percent of Hours Delivered via ILT Percent of Hours Delivered via vilt Percent of Hours Delivered via Online Self-Study Percent of Hours Delivered via Experiential / On-the-Job Activities Percent of Hours Delivered via Collaboration / Feedback Percent of Hours Delivered via Other Methods Maturity Level $82 8% 54% 7% 19% 13% 5% 2% Maturity Level $85 8% 46% 12% 22% 14% 6% 0% Maturity Level 3 & $71 18% 38% 13% 20% 17% 12% 1% Source: Bersin by Deloitte, Definitions: Program Metrics Annual Training Hours per Learner Average number of formal training hours completed per learner. Cost per Student Hour Total training spending divided by total student hours consumed. Average figures are reported. Percent of Learning Assets Mobile-Enabled Average percent of learning assets that are designed for ipads, smartphones, tablets, or other handheld devices. Percent of Hours Delivered via ILT Average percent of training hours delivered via instructor-led classroom training. Percent of Hours Delivered via vilt Average percent of training hours delivered via virtual classroom training (remote instructor). Percent of Hours Delivered via Online Self-Study Average percent of training hours delivered via self-study web-based or computerbased training. Percent of Hours Delivered via Experiential / OTJ Activities Average percent of training hours delivered via experiential or on-the-job activities, which may include project assignments, rotations, etc.

38 The Corporate Learning Factbook Percent of Spending of Hours Delivered via Collaboration / Feedback Average percent of training hours delivered via collaborative activities or feedback, which may include coaching, mentoring, communities of practice, etc. Percent of Hours Delivered via Other Methods Average percent of training hours delivered via other training methods, such as job-aids, books, and videos. Figure 19: Spending Allocations by Program Area By Maturity Level Executive Development Management or Supervisory Training Other Leadership Development Profession- or Industry-Specific Training Sales Training Product Training Customer Service Training Process Training Soft Skills IT & Systems Training Desktop Application Training Regulatory or Compliance Training Other Training Maturity Level 1 7% 16% 5% 14% 7% 4% 6% 5% 8% 5% 4% 15% 4% Maturity Level 2 6% 22% 9% 12% 8% 7% 4% 7% 8% 7% 3% 6% 1% Maturity Level 3 & 4 8% 19% 9% 11% 10% 5% 7% 4% 10% 4% 3% 7% 2% Source: Bersin by Deloitte, Definitions: Spending Allocations by Program Area Executive Development Percent of training spending on executive development. Management or Supervisory Training Percent of training spending on management and supervisory training. Other Leadership Development Percent of training spending on other leadership development initiatives. Profession- or Industry-Specific Training Percent of training spending on professional or industry-specific development (e.g., engineering, accounting, healthcare). Sales Training Percent of training spending on sales training.

39 The Corporate Learning Factbook Product Training Percent of training spending on product training. Customer Service Training Percent of training spending on customer service training. Process Training Percent of training spending on process training (e.g., operations, quality, Six Sigma). Soft Skills Percent of training spending on interpersonal or soft skills training (e.g., communication, teamwork). IT and Systems Training Percent of training spending on IT and systems training (e.g., enterprise software). Desktop Application Training Percent of training spending on desktop application training. Regulatory or Compliance Training Percent of training spending on regulatory or compliance training (e.g., safety, harassment). Other Percent of training spending on other types of training.

40 Appendix VI Table of Figures Copyright 2014 Deloitte Development LLC. All rights reserved.

41 The Corporate Learning Factbook Appendix VI: Table of Figures Figure 1: L&D Benchmarking Metrics 5 Figure 2: Year-over-Year Change in Training Spending U.S to Figure 3: L&D Spending per Learner by Industry Figure 4: L&D Spending Allocations by Program Area U.S Figure 5: L&D Spend per Learner by Maturity Level 11 Figure 6: Percent of Learning Assets That Are Mobile-Enabled U.S. Total and by Industry Figure 7: Bersin by Deloitte High-Impact Learning Measurement Framework 14 Figure 8: Respondent Count (Unweighted) 16 Figure 9: Respondent Count by Industry (unweighted) 17 Figure 10: Bersin by Deloitte High-Impact Learning Organization Maturity Model 21 Figure 11: Spending and Staffing Metrics U.S. Total and by Company Size 23 Figure 12: Program Metrics U.S. Total and by Company Size 24 Figure 13: Spending Allocations by Program Area U.S. Total and by Company Size 26 Figure 14: Spending and Staffing Metrics By Industry 29 Figure 15: Program Metrics By Industry 31 Figure 16: Spending Allocations by Program Area By Industry 32 Figure 17: Spending and Staffing Metrics By Maturity Level 35 Figure 18: Program Metrics By Maturity Level 37 Figure 19: Spending Allocations by Program Area By Maturity Level 38

42 The Corporate Learning Factbook About Us Bersin by Deloitte delivers research-based people strategies designed to help leaders and their organizations in their efforts to deliver exceptional business performance. Our WhatWorks membership gives FORTUNE 1000 and Global 2000 HR professionals the information and tools they need to design and implement leading practice solutions, benchmark against others, develop their staff, and select and implement systems. A piece of Bersin by Deloitte research is downloaded on average approximately every minute during the business day. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent, and learning strategies. As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Copyright 2014 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited.