In an effort to balance the skills gap in the work force, employee development spending increased 9.5 percent for an average of $800 per head in 2011, according to a study by Bersin & Associates, a research and consulting human resources firm.
The research also reveals that while training organizations faced double-digit spending cuts in 2008 and 2009, there was a slight uptick of 2 percent in 2010. The research also found that the large business investment in social learning tools in 2011 nearly doubled to an average of $40,000.
"U.S. companies are now reinvesting in training to address a major skills gap, which we identified in the market more than a year ago," says Josh Bersin, CEO and president of Bersin & Associates. "Organizations are turning away from formal classroom training – and even traditional e-learning programs – to deliver bite-sized learning on a continuous basis. In fact, our research shows that today, the demand is for 'just the learning you need, just in time.'
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"Companies are using social learning to drive innovation in their learning organizations. By allowing users to actively interact and share knowledge, organizations are both empowering users to teach one another and are actively encouraging conversations that organically foster creativity and problem solving."
According to the study, employees received more development in 2011 at an average of 15.3 hours, a jump from 12.8 hours in 2010. Still, most of the focus remains outside of the formal learning event, and learning and development organizations now understand that these formal learning events must be reinforced to provide lasting benefits. Consequently, these organizations are centering more on helping employee internalize the knowledge and apply the skills through ongoing, reinforced learning environments, such as manager coaching, collaborative tools and experiential exercises.
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