In today’s competitive business landscape, investing in employee learning, development and training is crucial for maintaining a skilled and motivated workforce. Companies in the US are increasingly recognizing the value of such investments, dedicating significant resources to enhance their employees’ skills and overall performance.
Average Investment in Employee Training
On average, companies in the US spent about $1,207 per employee on training in 2023, a slight increase from $1,071 in 2021. Large companies typically allocate more funds, with an average expenditure of $1,689 per learner, compared to $826 for midsize companies and $1,396 for small companies.
Time Spent on Training
The average employee receives substantial training time on an annual basis, with an average of 62.4 hours of training in 2023. That’s the equivalent of more than a week and a half of full-time work spent on training alone per year. This figure, while slightly lower than the nearly 64 hours recorded in the previous year, underscores a significant commitment to employee development. Midsize companies lead with 71 hours of training per employee annually, highlighting their focus on comprehensive training programs.
Training Expenditures by Industry
Training expenditures differ across industries. Service organizations top the list, investing $1,512 per learner, while retailers and wholesalers follow with $1,299. These figures highlight the unique needs and priorities within each sector.
Types of Training Programs
Training budgets are mainly allocated to mandatory compliance training (13%), management and supervisory training (12%), and onboarding (11%). Diversity, equity, and inclusion (DEI) training, though relatively new, now accounts for 7% of the average training budget, according to data from Training. This distribution reflects the areas companies deem most valuable and necessary.
The Role of Technology in Training
Technology plays a significant role in delivering training, with 33% of training hours delivered via online or computer-based methods and 30% through instructor-led classroom settings. Blended learning techniques, combining both online and in-person methods, are also popular, accounting for 32% of training hours. This approach allows for flexibility and scalability in training programs.
Benefits of Investing in Training
Dedicating time and resources to employee training is essential for companies aiming to remain competitive and foster a motivated workforce. Effective training enhances skills, drives innovation, and contributes to long-term success through reduced turnover and a more competent, confident workforce.
Investment in employee learning, development, and training is a strategic imperative for companies aiming to stay competitive and foster a motivated workforce. By dedicating time and resources to training, organizations can enhance their employees’ skills, drive innovation, and achieve long-term success.
Lin Grnesing-Pophal is a Contributing Editor at HR Daily Advisor.
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