Bersin by Deloitte recently released an extensive report on the learning and development industry called ‘The UK Learning Factbook 2013’. The report looks extensively at everything from budgets to learning delivery and is good indication of the current state of the market. Below is a summary of findings; the full report is available to Bersin by Deloitte members or for purchase here.
Training Budgets and Headcounts
- Large companies (10,000 or more employees) are suffering the worst – 2/3 reporting reductions in training budgets in 2012 where 52% of medium companies (1,000-9,999 employees) are reporting budget cuts and 27% of small businesses (50-999 employees).
- Training spending declined by 12% on average across these enterprises.
- Budget pressures resulting in many companies turning to online and informal learning methods revaluate their processes and think creatively about how to deliver learning solutions.
- Volume of training also been cut back.
- Large businesses have cut training headcounts by 5% in 2012. UK almost twice amount of L&D staff per 1000 learners than US although UK has greater reliance on instructor led courses.
Change in Job Roles
- Modern L&D organisations are moving towards staffing models that require fewer personnel for delivery – more emphasis on coaching, consulting skills and strong business acumen.
- L&D organisations must define their high value job roles and develop staff to fit these roles.
- Jobs are becoming much more specialised – greater demands for qualifications.
- Many UK companies are using apprenticeship programs to develop specialised skills over time. They also bring young talent into workforce.
Changes in Learning Delivery
- UK firms are using more online methods in training initiatives. Although “chalk and talk” still accounts for 53% of training hours, its use has declined from 2009, when it represented a staggering 77% of training delivery.
- Use of e-learning during this period rose to 15% of training hours, and virtual classrooms now account for 6% of hours.
- For many organisations, blending delivery methods makes for an effective recipe, such as online learning as a prerequisite to live or virtual classroom learning, followed by coaching and online discussion forums for support.
Learning Technologies
- UK firms have embraced learning technologies.
- Compared to 2009, twice as many UK firms now use learning management systems (LMSs) and learning content management systems (LCMSs), and three times as many use rapid e-learning tools.
- Large businesses allocated 15% of L&D funds to learning tools and technologies in 2012.
- LMS market research estimates that spending will continue next year, with investments in LMS in Europe / the Middle East / Africa growing by another 12% in 2013.
Informal Learning
- 2009 study showed very limited adoption of informal learning in the UK. Today 25% of UK companies use blogs and social media in training efforts, and even more use communities.
- UK organisations are still in the early stages of experimenting with these tools to see how they can be used effectively in a learning environment. Bersin believes that the evolution to informal learning will be of a similar magnitude as the switch to e-learning that began more than a decade ago.
Outsourcing
- UK companies have cut back spending on external products and services. Some have found savings by consolidating and renegotiating contracts with solution providers.
- But even with the drop in outsourcing, the proportion of spending on external services is much higher than in the US – UK firms spend more on development and delivery of instructor-led training, services which can be pricey. By contrast, a greater proportion of US funds go to off-the-shelf content, which tends to be less costly.
