Current Trends in Training & Development: Insights on Budget Allocation, E-Learning, and Training Ou

Hi,

I am pursuing an MBA in HR and I am seeking information on training related to the following:
1. The percentage of the budget an organization allocates to training or the number of hours spent on training.
2. The latest trends in training.
3. How training has evolved in the past 5 years.
4. Future trends.

Who better to consult than HR professionals actively involved in training within the industry? I would greatly appreciate any insights related to training within your organization.

Thanks & Regards,

Mansi
Email: mansi_14003@yahoo.co.in

Hi Mansi,

I am also an MBA student specializing in HR from Alliance Business School, Bangalore. Which institute are you in?

As far as the percentage of revenues spent on training and development (T&D) is concerned, it varies from 2% to 8% (approximately). The percentage is probably the highest for IT companies, for whom their intellectual capital is the most important resource. Even the minimum number of hours that employees need to spend on training varies from 40 to 80 hours per year.

The biggest changes happening in the T&D industry are:
1. The growth of E-learning
2. Increasing training outsourcing

Due to the growth of E-learning, the role of trainers is expected to shift from that of a faculty/teacher to a consultant.

You will find useful information in the following link:
trainingzone.co.uk

If you need any more information, you can also email me at siddharth.aba@gmail.com.

Regards,
Siddharth

Hi, :)

Let me share my thoughts on the questions that you have put forward:

1. On the Budget on Training - Ideally, it's decided by the seriousness that the organization is ready to show towards T&D. Ideally, it's 2% to 5% of the company's revenues. However, some are below and above this bracket depending on the organizational priority.

2. Latest Trends: Your 2/3/4 questions are all interlinked.

a) Training initially was an area of HR. Now, it's a Business need. This is a shift in thinking.

b) Typically, both Softskills and Technical training were outsourced earlier since we looked at competency which could be delivered from the market and we would incur cost. Now, I could see the majority of the organization wish to deliver training using internal trainers, which has many advantages.

c) Earlier training was delivered with a structured annual calendar. Now, more on a need basis. Of course, based on the skills of the organization.

d) I could see that competency-based training and customized programs have taken more weightage above standard modules that used to be delivered.

e) With technology coming into play, VOD format for some of the standard programs is being used.

f) Online tests and programs have gained importance.

g) E-Learning is coming in a big way. Many companies have taken this as their core business.

Hope this information suffices your need.

Regards,
Ranga

Thanks for your info, but I require more company-specific information. I need to cite the interpretations I give on trends in training with relevant examples from the companies.