Businesses are Desperate for Cheaper and More Effective Training Programs
Since 2009, the investment of companies into training systems has surged. In year-to-year comparisons, this spending was 2 percent in 2010, 10 percent in 2011 and 12 percent in 2012. This reflects the growing recognition by corporate leaders that their employees need more skills to compete in an ever diversifying environment.
This upward trend also indicates a less qualified talent pool that must be developed in order to attain a modicum of functionality. Almost a third of incoming employees lack the basic skills in critical thinking, collaboration, creativity, reading and communicating necessary to perform their jobs at minimum levels.
The growing skills gap that companies are trying to remedy is also a generation gap. As the Baby Boomers retire, there is a lack of qualified leaders in many company structures. Not only do younger workers require training in many technical areas, but they also need leadership training.
Online courses are critical components in these emerging corporate training programs. While some companies remain rooted in the traditional classroom approach, the more innovative have integrated online systems that cater to the hectic lifestyles of their employees.
- Technology based learning systems are dominating the training market. Tools like social learning, mobile learning, expert directories and knowledge sharing have grown by 39 percent in the past year.
- Many companies are reluctant to replace traditional instructor based training programs but the expenditures on these types of systems have dropped to 30 percent. The majority of corporate training budgets have been allocated to online programs.
- Companies with the greatest competitive advantages have the most generous training programs. According to Bersin, these leaders invest 39 percent more funds into training than their less successful counterparts.
- Investment in employee training is a critical issue in employee retention. The effort put into developing employees strengthens loyalty to the company rather than an increased desire to market those newly instilled skills.
- Expect more employees to seek out leadership training programs both in-house and independently. More workers are recognizing that the last generation of corporate leaders is heading towards retirement, leaving an abundance of management positions that can only be filled by qualified managers.
- Online programs are more focused on industry best practices rather than experiential instruction. More courses produced by industry experts will help bridge skill gaps that are hobbling enterprise competitiveness.
While many companies are only now beginning to recognize the primary role that online training systems fulfill, established leaders in the corporate training industry like Coggno have already taken the necessary steps to streamline course delivery and quality assurance. Using our wellspring of course creation knowledge and marketing expertise, you can achieve new heights of success.