How and Where Organizations are Investing to Help Close Employee Skills Gaps. Corporate Learning Benchmarks & Trends
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1 How and Where Organizations are Investing to Help Close Employee Skills Gaps Corporate Learning Benchmarks & Trends
2 Today s Presenters Ben Carroll Senior Research Analyst Benchmarking and Analytics Bersin by Deloitte Deloitte Consulting LLP bcarroll@deloitte.com Jennifer Krider Senior Research Analyst Benchmarking and Analytics Bersin by Deloitte Deloitte Consulting LLP jkrider@deloitte.com 1 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
3 Today s Agenda Survey Methodology Introduction Post-Recession Recovery The Critical Skills Gap Poor Succession Planning Preventative Action Crossing the Chasm Strategy 1: Increasing Investment in Employee Development Despite rebounding economy, spending on external service providers continues to drop Decrease as indicator of L&D practitioners increased confidence bringing training initiatives back in-house Strategy 2: Rethinking L&D Time Allocation Surveyed UK organisations boosted spending on L&D initiatives by 11 percent between 2014 and 2015 Recovery in the form of increased spending also seen across organisations of all sizes Strategy 3: Targeting Employees with Diversified Delivery Methods Staff-to-employee ratios soar Training hours on the rise The Impact of Organization Maturity on Spending Conclusion Related Research Q&A Copyright 2016 Deloitte Development LLC. All rights reserved.
4 Survey Methodology
5 Survey Methodology 2015 Corporate Learning Benchmarking Survey Total respondents = 294 U.S.-based companies with 1,000+ employees Company size (# of employees) Midsize (1,000 4,999 Employees) 30% Medium-Size (5,000 9,999 Employees) 18% Large (10,000 24,999 Employees) 25% Enterprise-Level (25,000+ Employees) 27% Completed between January and May 2015 Online invitations distributed by: Bersin by Deloitte, Skillsoft, and Xyleme 4 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
6 Introduction
7 Post-Recession Recovery The US economy has been improving slowly but steadily since the 2008 economic downturn. Signs of Improvement Corporate profits on the rise Increased retail sales Low levels of inflation Higher-than-average new home sales Job Creation 6 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
8 The Critical Skills Gap While the number of new jobs has increased, the talent available to fill open positions is lacking. Job Market Attributes More jobs than potential employees Current employees lack critical skills necessary to meet hiring needs Imperative to develop existing talent 7 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
9 Poor Succession Planning Members of the workforce are beginning to age out, and talent pipelines are weak. Contributing Factors Baby Boomers leaving the workforce Talent pipelines critical for longterm growth are perilously weak Identified successors may not be right fit for new roles Lack of formal process for succession management 8 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
10 Crossing the Chasm To close the skills gap, and ensure that their workforce can face new challenges head-on, organizations are employing a variety of new strategies. Strategic Focal Points Increasing investment in employee development Rethinking L&D time allocations Targeting employees with diversified L&D delivery methods 9 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
11 Strategy 1: Increasing Investment in Employee Development
12 Strategy 1: Increasing Investment in Employee Development Training spending increased 10% in % Year-over-Year Change in L&D Spending, % 10% 5% 0% 7% 6% % 12% 10% 10% 2% % -10% -11% -11% -15% 11 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
13 No Direct Relation Between Organization Size and Spend Mid-to-Large-sized organizations increased their spending the most. Year-over-Year Change in Training Spending by Company Size, Average Overall Increase in Training Spending: 10% 12 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
14 Healthcare Invested the Most in Development Healthcare spent 14% more than the industry average in employee development. Healthcare Spending at a Glance Highest per-employee spend Likely driven by: Affordable Care Act (ACA) reforms Alternate means of patient communication Growth of online payment processing platforms 13 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
15 Largest Change Seen in the Technology Industry Technology industry investing 11 percentage points higher than national average Year-over-Year Change in Training Spending by Industry, Average Overall Increase in Training Spending: 10% 14 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
16 Strategy 2: Rethinking L&D Time Allocations
17 Strategy 2: Rethinking L&D Time Allocations Bedrock Roles account for 41% of L&D staff time. 25% 20% 15% Bedrock Roles as Percent of L&D Staff Time 2011 vs % 18% 16% 15% 10% 11% 10% 5% % Live Delivery & Facilitation Content Design & Development Training Operations Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
18 Banking/Financial Services/Insurance Dedicate the Most Time to Bedrock Roles Despite the shift away from bedrock roles, they still occupy a large portion of L&D time Bedrock Roles as Percent of L&D Staff Time by Industry 2011 vs 2014 All U.S. Industries Healthcare 17 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
19 The other 59% of L&D Time As the focus on bedrock roles has decreased, additional time given to other areas. 14% 12% 13% Detail: L&D Role Allocation by Time 10% 8% 8% 8% 6% 6% 6% 5% 5% 5% 4% 4% 2% 0% Learning leadership Program/ Portpolio management/ Content curation Performance consulting Learning achitecture management Change management Knowledge management Vendor management Reporting & analytics Learning brand management / communication *Numbers do not add up to 59% due to rounding 18 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
20 Strategy 3: Targeting Employees with Diversified L&D Delivery Methods
21 Instructor-Led Training Common, But on the Decline L&D practitioners are spending more time reaching learners through new means. -9% L&D Delivery Methods, % 35% 35% +6% 30% 25% 26% -1% 20% 15% 14% 12% 10% 5% 7% 6% 0% Instructor-led E-learning Experiential/On-the-job Virtual/Webcast Collaboration/Feedback Other methods 20 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
22 Manager Training Decreases, while Product Training Increases In 2014, L&D functions spent less time on management or supervisory training. Allocation of Spending by Program Type, % Management or Supervisory Training Profession- or Industry-Specific Training 11% 11% Sales Training 10% Product Training Regulatory or Compliance Training 8% 10% 4% Other Training 8% Executive Development Process Training Soft Skills 7% 7% 7% Other Leadership Development Customer Service Training IT and Systems Training 6% 6% 6% Desktop Application Training 3% 0% 2% 4% 6% 8% 10% 12% 21 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
23 The Impact of Organization Maturity on Spending
24 Mature L&D Organizations Spent 38 Percent More The most mature organizations invest 38% more per employee than the least mature. L&D Spend per Employee by Maturity Level, 2014 $1,400 $1,317 $1,200 $1,000 $956 $894 $969 $800 $600 $400 $200 $0 Level 1: Incidental Training Level 2: Training and Development Excellence Level 3: Talent and Performance Improvement Level 4: Organizational Capability Development 23 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
25 Conclusion
26 Key Questions to Consider Do you have benchmarks in place to assess your organisation against peer organizations? Do you have an L&D strategy? If so, is it aligned to your business imperatives? How are you addressing the changing needs of both your organisation and its learners? What means of training are you using to reach employees? Are you diversifying the training methods with which you reach employees (e.g., Instructor-led, on-thejob, e-learning)? What level of maturity is your L&D function? What is the ratio of your L&D personnel to your employees? 25 Copyright 2015 Deloitte Development LLC. All rights reserved. Copyright 2016 Deloitte Development LLC. All rights reserved.
27 Are You Ready for the Corporate Learning Factbook 2015? A trusted source of data on HR spending, staffing, and resource allocations, the Corporate Learning Factbook 2015 provides key benchmarks and valuable guidance to help human resources executives make effective investment decisions. You will learn: How much L&D organizations are typically spending per learner How organizations are allocating their L&D funds across different program areas How mature organizations differ from their less mature counterparts 26 Copyright 2015 Deloitte Development LLC. All rights reserved. Copyright 2016 Deloitte Development LLC. All rights reserved.
28 Related research How we can help you today Corporate Learning Factbook 2015: Benchmarks, Trends, and Analysis of the U.S. Training Market Debunking Three Myths of Learning Measurement: Challenging L&D Mindsets to Align Learning Measurement with Business Needs Technology as a Lever for Continuous Learning: Four Success Stories 27 Copyright Copyright Deloitte Deloitte Development Development LLC. LLC. All rights All rights reserved. reserved.
29 Q&A 28 Copyright 2015 Deloitte Development LLC. All rights reserved.
30 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. About Deloitte 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. Copyright 2016 Deloitte Development LLC. All rights reserved. 36 USC Member of Deloitte Touche Tohmatsu Limited
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