The training industry is facing some serious challenges this year, with the shrinking corporate training market topping the list.
In 2009, training marketers face the greatest decline in corporate training spending in more than a decade. Here are some of the latest statistics from Workforce Management:
Average training expenditures per employee fell 11 percent in the past year, from $1,202 per learner in 2007 to $1,075 per learner in 2008, according to a report issued Friday, January 23, by research firm Bersin & Associates.
Bersin said its figures include training budgets and payroll. Bersin also said the U.S. corporate training market shrank from $58.5 billion in 2007 to $56.2 billion in 2008, the greatest decline in more than 10 years.
Another study released in November confirmed the old theory that training is one of the first victims when budget cuts strike. Almost half of corporate and government training professionals surveyed said their training budgets will decrease in 2009.
As they watch their budgets shrink, HR and corporate training professionals are looking for low-cost training options that can still get the job done without an expensive price tag.
The downturn is bringing new life to e-learning, where companies feel they’re getting the most bang for their buck. It’s easy to deliver and generally less expensive than traditional classroom training methods.
Learning experts are also watching a growing trend toward informal learning methods in which employees depend on managers and coworkers for training and on-the-job education. The trend includes using webinars, mentoring programs and brown-bag lunches to develop a strong learning culture and motivate employees.
While the recession is dropping a long list of challenges in our laps, it is up to us to decide how to attack each one. The face of corporate training is changing we’ll have to adapt right along with it.