Corporate training can invariably be split into two categories: internal and external. Clients have historically developed and implemented internal programs for corporate training that features induction, business process orientation and corporate procedures. However, clients outsource training where specific external skills or experience may be required. The balance between internal and external corporate training has shifted significantly towards external in recent times, as companies continue to downsize their human resource departments as part of their globalization strategy. Most large corporations now outsource approximately 80% of their entire corporate training requirements to specialist corporate training providers. This enables companies to benefit from a wide variety of specific knowledge, skills and experience, which would not otherwise be available to them.

The economic recovery is clearly here: spending on corporate training is soaring. The research is striking: US spending on corporate training grew by 15% during the last year to over USD$70 Billion in the US and over USD$130 Billion worldwide. This tremendous increase follows two years of accelerated spending in this area, illustrating how companies see tremendous skills gaps as we recover from the recession.

All of our research tells us that organizations today suffer from a skills supply chain challenge. Not only do more than 70% of organizations cite capability gaps as one of their top five challenges, but many companies also tell us that it takes 3-5 years to take a seasoned professional and make them fully productive.

A few key facts about corporate training spending:

Leadership Development

As in prior years our research shows that the highest amount of spending on corporate training is management and leadership (35%). Our research shows that global leadership gaps continue to be the most pressing issues on the minds of business and HR leaders.

High Performance

Companies which fall into our high performance categories spend significantly more on training than average. So companies that invest in a total corporate training strategy spend more per employee than those who are inconsistent. This really proves that corporate training investment is well worthwhile.

Technology Revolution

Our research demonstrates a significant growth in technology tools available now to train people. Global cloud servers, interactive software, video, online communication channels, and virtual learning are all growing rapidly as training tools. People still need formal classroom education, but this is now less than half the total hours people consume in training around the world. And among the highly advanced companies, as much as 18% of all training is now delivered through mobile devices.

Virtual Learning

We see significant growth in new virtual learning environments: many clients are extending their training budget to reach 3 times the audience through the use of easy to use training portals and virtual learning experiences. While most big companies still have a lot of work rationalizing their training spend, the adoption of technology in training has accelerated.

Employee Retention

Among the many reasons people leave companies, one of the most prevalent is for a lack of opportunity. Our research clearly shows that organizations which invest more heavily in training, career development, and mobility outperform their peers in almost every industry. Management is one of the most important parts of any organization, and companies have to develop and support great leadership. Our research shows that people thrive through coaching, feedback, and opportunities to develop.

Business Process

The business process market is also growing rapidly. We estimate that the market for business process improvement management systems is now over $2 billion and continues to be one of the fastest growing market segments within corporate training. This is exciting news. While skills gaps (we call it the “supply chain of skills”) continue to challenge companies, an increased investment in training is good for everyone: employees, businesses, and job seekers. This level of increase shows that businesses are aggressively expanding and companies need skilled workers to grow.