Companies Spend $1,202 Per Learner

Although management represents a small percentage of the corporate workforce, it gets the lion’s share of the corporate training budget, according to Bersin & Associates’ justpublished 2008 Corporate Learning Factbook. Approximately 21 percent of training program dollars is spent on leadership development and management/supervisory training.

 “Corporations are investing heavily in current and up-and-coming leaders,” says Josh Bersin, president of Bersin & Associates. “Looming retirements, gaps in management talent and economic pressures are causing companies to funnel dollars into their leadership pipelines.” Bersin’s 77-page factbook analyzes a wide range of metrics. Some findings:

>> The corporate learning market increased from $55.8 billion in 2006 to $58.5 billion in 2007.

 >> The average spending per learner is $1,202. The highest spending sector is finance and insurance ($1,061 per learner), and the lowest is retail ($594 per learner).

 >> The use of self-study e-learning now accounts for 20% of student hours, up from last year’s figure of 15%. This growth is driven largely by an increase in online training among small organizations (100-999 employees), which are acquiring the skills and technology to make online training a reality.

>> There has been a sharp increase in new Web-based and collaborative learning resources such as podcasts, communities of practice, blogs and wikis.

 >> 38% of organizations use a learning management system (LMS), with the highest growth in usage among mid-market buyers. Over half of all companies are using a virtual classroom tool, and between 20% and 30% use application simulation and rapid e-learning tools.

The 2008 Corporate Learning Factbook is available at no cost to Bersin & Associates research members. Copies can also be purchased for $595. 

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