2013 ASTD State of the Industry Report
December 9, 2013 1 Comment
So as many of you know I am an avid consumer of the ASTD’s yearly State of the industry Report and guess what, the 2013 edition is now available.
So what does it have to save about the world of L&D this year. Well it is interesting, there is not a lot of change from last years report. We see that spending on L&D globally was about $164.2 Billion with an average direct expenditure per employee of about $1,195. In terms of Average Direct Expenditure, this represents a very small ($13) increase over last year.
Again however Learning hours used per employee stuck at around the 30 hours mark, 30.3 this years to be exact. On suggestion for this stalling over the last four years in the increase in usage of non-traditional instructor led training and the more informal, workplace, just in time learning which is much harder to track and quantify. We also see that Direct expenditure as percentage of payroll rise only slightly to 3.6% as has the Direct expenditure of percentage of revenue rising slightly to 1.32%.
There has also been little or no change in the percentage of expenditure taken up by internal costs which remains steady at 61.5%, lower that 2009 (62.4%) but higher than last year (60.5%). There has however, been a not insignificant (5%) drop in the number of employees per L&D staff member which now sits at 299:1, there is an even more startling drop of around 40%, in this number in the ASTD BEST organisations, taking the number there from 288:1 down to 178:1.
The cost of learning has also gone up both in terms of the cost of providing one hour of training to one employee, rising to $89 and the overall cost of developing one hours training rising to $1,772, a rise of 20% over the last 4 years. Some reasons suggested for this increase if the up front costs of technology and the reduction in the ratio of employees to L&D staff members.
Managerial and Supervisory training makes up the largest content area for Learning programs, closely followed by mandatory and compliance training, business process and practices, and industry specific training with these four areas taking up just of 40% of all the learning programs delivered. How these programs were delivered tells what I think is an interesting story however, while yet again, instructor led classroom delivery dropped (5% down to 54.28) and technology based learning rose slightly to 39.20% which is not unexpected. What I find interesting is that All Online delivery has remained around the same percentage, (27.29% this year) since 2008. When you pair this with the fact that instructor lead training (either classroom or online/remote) accounted for some 70% of all training delivered, it seems to suggest, at least in my opinion that participants like to have instructors to interact with even when utilising online training. The other final thing I find interesting about the content and delivery data is that while there was a big jump in the percentage of hours used in terms of mobile technologies between 2009 and 2010, this usage has flattened out of the last three years remaining at 1.51%
So what does all this data mean? A couple of comments I would make would be that
- Instructor led learning is still the preferred method of delivery for a large amount of participants,
- New technologies may have had a quite significant effect on the overall cost of the development of training,
- Mobile learning is not the powerhouse, game changing, way of the future that everyone keeps suggesting it is.
I would be interested to know what others think of the data and what it means for the industry.