ATD’s 2021 State of the Industry report identifies studying adjustments and challenges.
Methodology
The Association for Talent Development collected information from collaborating organizations by way of a web-based survey from June into September 2021. A complete of 223 distinctive organizations submitted information for fiscal or calendar 12 months 2020. All organization-level information is confidential; responses are aggregated, and solely abstract statistics throughout teams are reported. ATD doesn’t share, promote, or focus on any individual-level information.
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The COVID-19 pandemic led to main adjustments in how employers delivered studying in 2020—most importantly, face-to-face studying hours dropped and digital classroom and e-learning hours grew. In addition, the common group’s direct studying expenditure decreased to $1,267 per worker in 2020, in comparison with $1,308 per employee in 2019 and $1,299 in 2018. That’s based on the Association for Talent Development’s 2021 State of the Industry report.
ATD Research analyzed self-reported information from 223 organizations representing a variety of industries, firm sizes, and places. AllenComm and Allego sponsored the report.
Virtual lecture rooms and e-learning see substantial development
Hoping to sluggish the unfold of COVID-19, many nationwide, state, and native governments closed nonessential workplaces in early 2020. Many organizations likewise took measures to restrict in-person gatherings of staff for coaching or different functions and halted or restricted enterprise journey. The outcome was that in-person studying hours dropped dramatically. Traditional face-to-face instructor-led lecture rooms accounted for 16 % of studying hours utilized in 2020, down from 40 % of hours used the 12 months earlier than.
Instead, learners consumed studying on-line. Last 12 months, organizations used digital lecture rooms to ship 35 % of studying hours used, up from 19 % in 2019. ATD’s current analysis in the Virtual Classrooms: Leveraging Technology for Impact report discovered that 98 % of firms use digital lecture rooms, and 9 in 10 see COVID-19 as a significant driver of their resolution to make use of them. Virtual lecture rooms are synchronous and use expertise to attach learners with an teacher in actual time.
By comparability, self-paced on-line supply (e-learning) accounted for 32 % of hours used at the common firm in 2020, up from 26 % the 12 months earlier than. Unlike digital classroom coaching, e-learning doesn’t require a dwell teacher and allows learners to entry studying at any time.
Learning spending dips however hours file slight improve
Average studying spending per worker throughout organizations dropped $41 from 2019 to 2020 (a 3 % decline). That isn’t a surprise when contemplating that the international financial system contracted by 3 % (in different phrases, development was unfavorable) final 12 months, based on the International Monetary Fund. The pandemic’s affect was felt round the world, with nearly all nations experiencing unfavorable development. The International Labour Organization studies that the international unemployment price was as much as 6.5 % in 2020, in comparison with 5.4 % in 2019.
Where did the studying spending go? Direct studying expenditure falls into three classes: inner providers, studying suppliers, and tuition reimbursement. Organizations final 12 months spent greater than one-quarter (28 %) of bills on studying suppliers, outlined as firms that present consulting providers; exterior content material growth and licenses; and outdoors, nonstaff trainers. Nine % of bills went towards tuition reimbursement for applications and programs at schools and universities, in addition to persevering with skilled schooling and certification. The remainder of firms’ studying expenditures in 2020 went to inner providers, which comprise in-house growth, supply and administration bills, and expertise growth workers salaries.
Direct studying expenditure per worker relies upon closely on firm dimension. For instance, bigger employers can present the identical studying choices at a lowered value per employee as a result of they’ll unfold out lots of the growth and supply prices over extra staff. The 2021 State of the Industry report discovered that enormous firms (no less than 10,000 staff) had the lowest direct studying expenditure per particular person in addition to the lowest value per hour utilized in 2020; small firms (fewer than 500 staff) recorded the highest values for each indicators.
ATD researchers additionally examined information for some business teams. Finance, insurance coverage, and actual property (FIRE) firms are sometimes closely regulated and should ship appreciable quantities of required coaching to their staff. Many additionally should present schooling to their workers on complicated services. Last 12 months, FIRE firms spent, on common, $1,291 per worker on studying.
![Figure 2. Average Direct Learning Expenditure per Employee
2017 $1,296
2018 $1,299
2019 $1,308
2020 $1,267](https://d19d5sz0wkl0lu.cloudfront.net/dims4/default/fccbad3/2147483647/resize/600x%3E/quality/90/?url=https%3A%2F%2Fatd-brightspot.s3.amazonaws.com%2Fad%2Fe5%2F23f0a7b947b88afdcd444c242afa%2Ffeature1-december2021-td-figure-2.jpg)
In distinction, healthcare and pharmaceutical organizations spent $1,174 per worker on studying, which is lower than the consolidated common throughout all firms. Research from the American Healthcare Association reveals that the pandemic put intense strain on hospital workers and sources. In addition, general hospital income decreased because of a steep discount in non-COVID-19 volumes (for instance, hospitals canceled or postponed some procedures).
![Figure 3. Average Learning Hours Used per Employee
2017 34.1
2018 34.0
2019 34.7
2020 35.0](https://d19d5sz0wkl0lu.cloudfront.net/dims4/default/91ad881/2147483647/resize/600x%3E/quality/90/?url=https%3A%2F%2Fatd-brightspot.s3.amazonaws.com%2Fc0%2Faa%2F52be5e8c4ba096852c33f043407d%2Ffeature1-december2021-td-figure-3.jpg)
Although common studying spending confirmed a drop throughout all industries, the variety of studying hours every worker used elevated barely. The 2021 State of the Industry report reveals that at the common group, every employee used 35.0 hours of formal studying in 2020 (or between 4 and 5 eight-hour workdays); in 2019, staff used 34.7 hours. Formal studying hours solely mirror time spent on standalone studying actions, which aren’t embedded in on-the-job work actions.
The hours used per worker is barely greater than the figures seen in the previous few years, starting from 32 to 34 from 2014 to 2018. Each studying hour utilized in 2020 was barely cheaper than the 12 months earlier than. And the variety of staff per expertise growth workers member elevated. Those adjustments doubtless mirror the adjustments in how employers delivered studying—when firms use digital lecture rooms and e-learning, they’ve the potential to achieve extra learners with an providing. They might also save on journey prices and overhead prices comparable to classroom rental charges.
On-the-job studying adjustments
Despite the pandemic, employers remained dedicated to on-the-job studying experiences (outlined as any studying that’s not a standalone exercise and is intertwined with work actions). Last 12 months, 62 % of organizations emphasised on-the-job studying to a excessive or very excessive extent. That is barely greater than the 56 % seen in 2019.
ATD researchers discovered that 48 % of firms noticed data sharing in particular person occur to a excessive or very excessive extent in 2020, down from barely over half the 12 months earlier than. Last 12 months, 38 % of firms had excessive ranges of information sharing with the support of expertise (comparable to social media or collaboration instruments), which is a rise from lower than one-third in 2019.
Compliance and administration coaching high content material distribution
Mandatory and compliance constituted 14 % of organizations’ studying portfolios final 12 months, greater than every other content material space. Examples of necessary and compliance coaching embrace occupational security and well being coaching (together with coaching associated to decreasing COVID-19 unfold in workplaces), sexual harassment coaching, and cybersecurity coaching. It additionally consists of compliance coaching that’s particular to industries. For instance, banks are extremely regulated in the US, and the Federal Deposit Insurance Corporation requires that banks present periodic coaching about their codes of conduct or ethics coverage. In healthcare, the Health Insurance Portability and Accountability Act requires all staff who’ve the potential to entry protected well being info to obtain coaching on HIPAA rules.
After holding the high spot for the earlier six years, managerial and supervisory content material was the second-biggest content material space in 2020, with 13 % of the studying portfolio. The content material space consists of materials associated to managing people and groups—for instance, teaching, constructing groups, and managing worker efficiency. Increasingly, managerial and supervisory content material consists of coaching on tips on how to handle just about—in different phrases, tips on how to handle workers who work in a distinct location from the supervisor.
According to the ATD analysis report Developing Virtual Managers: Driving Excellence From Afar, 77 % of managers had no less than one direct report working in one other location by the finish of 2020, in comparison with solely 21 % earlier than the pandemic. The report discovered that organizations that supplied coaching on tips on how to handle in digital settings had been more likely to be sturdy enterprise performers.
With restoration forward, digital lecture rooms will endure
The studying information reported in the 2021 State of the Industry report is for 2020; information for 2021 shall be collected in 2022. This 12 months, COVID-19 vaccines grew to become extensively obtainable in lots of nations, and as of October 12, 2021, greater than 6.6 billion vaccine doses have been administered worldwide—greater than sufficient to completely vaccinate 43 % of the international inhabitants, based on information from Bloomberg. The International Monetary Fund anticipates that consequently there shall be worldwide financial development (a “vaccine-powered recovery”) in 2021 however cautions that this development shall be uneven throughout nations (and inside nations) and characterised by uncertainty about the path of the virus and its variants.
However, even with the restoration, ATD’s analysis in Virtual Classrooms means that the elevated digital classroom use will proceed for expertise growth capabilities. The report reveals that almost all organizations count on digital classroom use to extend or keep the identical into 2022.
Download the 2021 State of the Industry report at td.org/SOIR2021 or view it in the ATD Publications app (td.org/PubsApp).
Take Heed When Benchmarking
The information introduced in the State of the Industry report will support readers in benchmarking their organizations’ studying expenditures and actions in opposition to these of different organizations. To make benchmarking comparisons extra significant, overview the information by business and workforce dimension groupings when attainable.
However, bear in mind that each one figures from the report are averages throughout teams, and the circumstances your organization confronted could also be vastly completely different from these the common collaborating firm, and even the common firm in your business, confronted. Therefore, don’t goal to duplicate the numbers supplied in the report. Instead, use the information as a benchmark to higher perceive your group’s studying expenditures and actions, in addition to these of different organizations.