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December 22, 2018

SNI’s Guide to the 2018 Training Industry Report

The 37th edition of the Training Industry Report has been released by Training Magazine. From its results, training industry experts, corporate leadership, and company training staff can gain valuable insight into the current status of training programs across the country. In addition, the findings of this report enables industry professionals to benchmark against industry standards and trends.

The Shapiro Negotiations Institute (SNI) is not exempt from this learning opportunity. We find this annual report very valuable and as a result have decided to create this post in order to pass along some of our takeaways to our community.

 

Report Methodology

The first Training Industry Report was released 37 years ago and the publication is now a trusted source of data for industry professionals and corporate leadership alike. During May and June 2018, an independent research company collected data from Training Magazine member companies via an online survey. Only U.S.-based corporations from Training Magazine’s database were included in this report.

Out of the 271 responses to the study:

  • 36% of responses came from small companies of 100 to 999 employees
  • 41% came from midsize companies with 1,000 to 9,999 employees
  • 23% came from large companies with over 10,000 employees

Survey demographics show a wide range of industry classifications and job functions.

  • 17% of respondents worked in the health/medical services industry
  • 11% came from finance and banking companies
  • 10% worked in manufacturing

Top job roles include managers and high-level company leadership (61%), developers and instructional designers (17%), and mid- and low-level company employees (22%).

 

Time, Money, and Services: Training Expenditure Data

According to the report, training expenditures across respondents’ companies decreased by 6.4%. Total expenditures, including payroll and training products and services, totaled $87.6 billion. Of that total, $47 billion was spent on payroll for training professionals and $11 billion was spent on external goods and services.

In addition, professionals selected top training materials that they plan to purchase in the upcoming year. The most popular products and services include:

  • Online learning tools and systems (41% of respondents)
  • Learning management systems (33%)
  • Classroom tools and systems (32%)
  • Content development (31%)
  • Authoring tools and systems (27%)

It is no surprise that the data shows that professionals continue to transition more spending from classrooms to online. That said, it is interesting to know that classroom tools are still a priority. Consistent with this report, SNI has spent a great deal of effort developing new online learning tools and seen a great deal of success; however, we still believe that classroom is the best environment for an original session and online is the best medium for reinforcement.

 

Delivery Trends and Techniques

Companies utilized a mix of classroom learning, online learning, and blended techniques for training administration over the past year.

  • 79% of small companies, 86% of midsize companies, and 43% of large companies utilized blended learning techniques in 2018.
  • 39% of small companies, 35% of midsize companies, and 31% of large companies used instructor-led classrooms only.
  • 8% of small companies, 10% of midsize companies, and 14% of large companies used a virtual classroom.
  • 24% of small companies, 28% to midsize companies, and 24% of large companies used an online method without an instructor.
  • Mobile and social learning were used significantly less than the other methods, ranging from 0% to 3% per company size and category.

It was interesting to note that blended learning techniques are the most common across all company sizes – this is not only what we would expect but also what we recommend. We were surprised to see that a very small percentage use mobile and social learning but we expect those numbers to grow as organizations are willing to give it a try, especially with the steadily decreasing average age in the workforce and as new technology and platforms continue to be developed.

 

Training Outsourcing and Expert Mobility

Many companies recognize that they lack expertise in some subject areas. They also understand and recognize the value of expert training programs and organizations like SNI. As a result, we were pleased to see that this report found the companies were increasing their expenditures for training outsourcing. On average, companies spent $422,321 in 2018 on training outsourcing versus $219,265 in 2017.

  • 56% of small companies, 55% a midsize companies, and 49% of large companies indicated that they outsourced instruction and facilitation services in 2018.
  • 48% of small companies, 50% of midsize companies, and 54% of large companies outsourced learning management system operations.
  • 34% of small companies, 53% of midsize companies, and 60% of large companies outsourced custom content development.

It is important to note that there are hybrid models available. For example, we recently implemented a large train-the-trainer program with a client that wanted to train thousands of sales people across the country. In this case we developed the curriculum, customized it, and then taught our client’s internal trainers how to teach the class. The result – our expertise, content, and customization combined with internal control and flexibility, and the cost savings that come with it.

 

2018 Training Industry Takeaways

Training industry professionals can learn key lessons from this data.

  • Most companies have been investing in technologically-based training materials and methods, such as learning management systems, custom content development, virtual classrooms, and other e-learning tools for years. Those who have not are now the minority and likely considering it in 2019. SNI has experienced this first hand with clients and as a result developed several online training platforms and online training programs – many of which are mobile-friendly or mobile-based in order to be ahead of the curve and continue to push the envelope the use of technology in education.
  • Companies are increasingly strategic in how they incorporate expert knowledge from outside sources. SNI has seem this first hand as organizations reach out because they are looking for a fresh perspective or simply do not have expertise around negotiation training. We have seen this in particular with smaller firms that simply do not have the staff or larger companies that are looking for world-class expertise.

 

If you have any questions about this summary, or for more information about our training, feel free to contact SNI at 410-662-4764.

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