Articles / Employers Look to Fill the Growing Skills Gap with Training
Employers Look to Fill the Growing Skills Gap with Training
With an economy on the rise, employers are targeting training as a way to fill the growing skills gap and use their available resources most effectively.
According to a new industry study by Bersin by Deloitte, overall spending on training rose 15 percent to $1,169 per learner last year. In order to fill organizational shortages with the resources you have and give employees new opportunities to help your business grow, effective training is crucial for meeting your long-term goals.
Organizations are spending more on learning, training, and development according to a new industry study by Bersin by Deloitte.
In 2013, overall spending on training rose 15 percent to $1,169 per learner. With the economy on the rise, businesses are slowly starting to review their budgets and invest in areas that were put on hold over the past few years.
Training is one area employers are targeting, as they are looking to fill the growing skills gap and use their available resources most effectively. In order to keep your organization moving forward, effective training is critical to give employers options and long-term solutions and to keep employees competitive and engaged.
In a recent press release, Bersin by Deloitte reported more details on their study “The Corporate Learning Factbook 2014: Benchmarks, Trends, and Analysis of the U.S. Training Market.”
“The problem many organizations face today is not a shortage of people, it is a shortage of key skills, especially those in engineering, scientific, and technical fields,” said Karen O’Leonard, vice president, benchmarking and analytics research, Bersin by Deloitte, Deloitte Consulting LLP. “Businesses are responding by investing more. And in mature organizations, this investment is not just short-term training — it involves building a ‘supply chain’ of skills to fill these gaps for the long-term.”
Nearly 300 U.S. organizations participated in the study from October to December 2013.
The research study’s additional findings include:
Mature organizations spend 37 percent more. Organizations with mature, effective learning and development (L&D) functions spend $1,353 per learner on average, or 37 percent more than the least mature groups. Most of these organizations have also adopted a “continuous capability development” approach that makes them more innovative, responsive, and agile as their markets change.
Learning in this model includes development planning, formal interventions, rotational assignments, coaching, mentoring, and much sharing and collaborative learning.
Technology organizations invest more in development. Technology organizations spent $1,847 per learner on average, one of the highest of any industry sector. Several tech firms have made large investments for training their teams to evolve from product sellers to solution and industry experts.
Other organizations in the technology space have transformed their engineering teams to focus on new products in consumer electronics, Big Data, telecommunications, and cybersecurity.
Leadership development claims the largest budget share. The largest share of the L&D budget went to leadership development, with 35 cents of every training dollar, on average, spent on developing leaders at all levels. Leadership has become an even bigger issue as the economy recovers and many firms look to expand globally.
More than 60 percent of all organizations cite “leadership gaps” as the top business challenge. (Bersin by Deloitte will publish more on this research in the first quarter of 2014.)