In this article, we explore the pivotal role of employee training and development in the workplace. From ROI impact to current trends, discover why investing in employee growth is important to success.
Key Takeaways:
- $4.53 return for every $1 spent on average
- Skill gap costs $1.3 trillion in lost productivity
- 85 million missing skilled workers by 2030
- Generative AI will enhance training programs for both employees and employers
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The State of Employee Training & Development Statistics
67% of HR Managers Expect L&D Budgets Will Increase
Businesses and workers need to adapt to a shifting workplace environment that increasingly incorporates AI and automation technologies into everyday use. With this in mind, two-thirds of HR managers expect their L&D budgets to increase this year.
46% of Companies Have Specific Training for New Graduates
Almost half of companies have introduced specific training courses for new graduates. This is to combat a perceived (and measurable) lack of real-world experience and soft skills, such as communication.
57% of Organizations Have Increased L&D Budgets Since the Pandemic Began
The COVID-19 pandemic highlighted a growing need for employees to be retrained or reskilled to be better prepared for a digital-first future. Perhaps that’s why over half of organizations have already increased their L&D budgets.
41.7% of Fortune 500 Companies Use eLearning as the Primary Training Method
Slightly more than 4 out of 10 of the 500 largest companies in the world choose eLearning as their preferred employee training method. They report that eLearning shows quicker results than a traditional classroom-type experience.
Corporate Training Market Worth over $325 Billion
The global corporate training market size is worth an estimated $329.1 billion. At first glance, this seems like a significant amount; however, it actually represents just 0.44% of the estimated market value of business around the globe.
Career Progress Is Primary Motivator for Workers
A poll asking workers around the globe what they valued the most about employer-provided learning opportunities found that the number one reason given was “career progression.”
Providing Learning Opportunities is Employers’ Favorite Way to Improve Retention
Stagnating wages, inflation, and a lack of development opportunities have led to worker turnover rates being higher than ever. In response, employee learning programs have become the #1 way organizations attempt to keep workers from switching jobs.
Career Growth Opportunities Most Important to Youngest Workers
| Most Important Factor When Choosing a Job → | Career Growth | Develop New Skills | Supports Work/Life Balance | Challenging or Impactful Work |
|---|---|---|---|---|
| Age Group ↓ | ||||
| 18–34 Years | 35% | 31% | 18% | 29% |
| 35–49 Years | 29% | 29% | 26% | 28% |
| 50+ Years | 16% | 26% | 20% | 35% |
| All Ages | 29% | 29% | 22% | 30% |
Different age groups prioritize different things from their employer when looking for a job. Career growth opportunity is the most important factor for 18 – 34-year-olds and the age group that values it the most.
Diversity & Inclusion Training Important to 1 out of 4 Workers
When workers from various socio-economic backgrounds and industries were asked about how important it was for their employer to provide diversity and inclusion training, just 25% said that it was important.
Employees Receive 62 Hours of Training
| Hours of Training per Employee | |||
|---|---|---|---|
| Business or Organization Size ↓ | Year → | 2021 | 2022 |
| Small (100 – 999 employees) | 67 hours | 61 hours | |
| Medium (1,000 – 9,999 employees) | 53 hours | 71 hours | |
| Large (10,000+ employees) | 78 hours | 46 hours | |
| All Companies | 64 hours | 62 hours | |
The average number of hours of training that employees receive from the employer per year is 62.4 hours. This has fallen despite growing L&D budgets and a skill shortage.
L&D Budgets Increased Because of Increased Training Scope
When asked to explain why they thought L&D budgets had been boosted, 70% of HR and L&D departments said that the primary reason was the “increased scope of training programs.” The second most popular response given was “added training staff” (56%).
25% of Workers Want Training Every Month
A quarter of U.S. workers say that they would like to receive training from their employer every month. Another 33% said that they would like to receive training every 3 months.
Impact on Employee Performance Statistics
Employees Who Receive Training Can Be 50% More Productive
Analysis of worker productivity shows that when an employee receives well-made, coherent, and engaging training from their employer, they can be up to 50% more productive than employees that receive no or poorly made training.
Ongoing Training & Development Increases Job Satisfaction
Not only are workers more productive if they receive adequate and regular training, but 71% report feeling higher levels of job satisfaction.
Employees Who Receive Training are 15% More Likely to be Promoted
The increased sense of job satisfaction and the improvement in productivity that employees exhibit after taking part in learning and development programs is part of the reason these employees are 15% more likely to receive a promotion
Regular Training Increases the Likelihood of a Good Performance Review by 34%
Employers love work performance reviews, and employees generally despise them. However, if employees take part in any sort of company learning and development training, they are 34% more likely to receive a positive performance review.
Training & Development Programs Boost Employee Confidence by 40%
One of the key benefits of employee L&D programs is the boost to employee confidence. The majority of workers who take part in such programs say they feel up to a 40% boost in confidence. Greater understanding of their job role and the desire to feel like we’re progressing are key to this.
Strength-Based Learning Can Result in 23% Higher Employee Engagement
Focusing training on building on your employees’ strengths rather than trying to combat their weaknesses can boost employee engagement by 23%.
Strength-Based Learning Results in Worker Performance Improvement
Another advantage of strength-based learning is the increase in worker performance levels. Some studies have seen an 18% improvement among employees who took part in this type of training.
Training & Development Technology & eLearning Tools Statistics
70% of Organizations Offer Mobile Learning Apps
Mobile learning apps are a preferred method of employee development as they allow employees to study at a pace, time, and place that feels comfortable for them.
LinkedIn Learning Is Used by 78% of Fortune 100 Companies
Around 8 out of 10 of the 100 biggest companies in the world use LinkedIn Learning and make it available to their employees to use. Some studies suggest that it may be even higher at over 90%.
Zoom Is Used for Virtual Training & Development Sessions by 71% of Fortune 500
Zoom saw explosive growth in the early days of the pandemic as students shifted to online classes. Employers took note of how effective the platform is in a learning environment and implemented its use in employee training and development. It’s now used by 71% of the largest 500 companies in the world.
73% of Organizations Use Gamification Tools to Boost Employee Engagement
Gamification is an essential component of making learning experiences engaging and rewarding. U.S. business leaders have identified this and today almost three-quarters of them use gamification to boost engagement in the employee training process.
37% of Companies in Manufacturing Use HoloLens to Train
Meta and Apple make all the headlines with their virtual reality (VR) and mixed reality (MR) headsets, but Microsoft’s MR headset, HoloLens, has been adopted by around a third of manufacturing companies in the U.S. for safety, best practices, and standardization training.
Skill Gaps & Upskilling Statistics
Up to Half of Workers Do Not Feel Equipped for the Next 5 Years
A survey of currently employed workers from countries around the world found that up to half are concerned that they will lack the skills needed to remain employable within the next 5 years.
64% of Organizations Say the Skill Gap Is Holding Their Business Back
The increasingly quick shift to an AI-driven economy means that many businesses and organizations are worried that the workforce isn’t adequately equipped for employment. In fact, almost two-thirds of business leaders are worried that this skill shortage is already holding businesses back.
82% of HR Professionals Say Soft Skills Are Most in Demand
Gen-Z are just beginning to enter the workforce, and the majority of HR professionals are all saying the same thing about them. They lack the essential soft skills (such as communication, teamwork, organization, critical thinking, and emotional intelligence) that employers seek.
Half of U.S. Employers Say Skill Gap Is Making It Hard to Fill Available Positions
A survey of thousands of U.S. employers found that approximately half of them said 20% of positions are unfilled due to being unable to find people with the appropriate skills.
58% of Key Positions Can’t be Filled with Current Employees
Another study found that as much as 58% of key positions within companies across different industries and around the globe could not be filled by existing employees.
94% of Employees Would Stay Longer if There Were Development Opportunities
Employees who feel like their employers want them to develop and progress generally want to stay with that employer for longer. Today, almost 9.5 out of 10 employees say that they would stick with their current employer if they provided clear development opportunities.
Skill Gaps Cost Organizations $1.3 Trillion
This astonishing amount is for the U.S. only. Some global estimates point out the skill gap could be causing the economy to lose out on up to $8.5 trillion.
Management Is the Most In-Demand Skill
| Industry | Rank | In-Demand Skills |
|---|---|---|
| Business | 1 | Management |
| 2 | Communication | |
| Finance | 1 | Management |
| 2 | Analytical Skills | |
| I.T. | 1 | Management |
| 2 | SQL | |
| Marketing | 1 | Social Media |
| 2 | Management | |
| Project Management | 1 | Management |
| 2 | Leadership | |
| Sales | 1 | Customer Service |
| 2 | Management |
Across industries like business, finance, I.T., project management, marketing, and sales, management is the most or second-most in-demand skill.
37% of U.S. Organizations Provide Reskilling Training
Around a third of U.S. employers already provide a way for existing employees to learn a completely new skillset. 56% have plans to offer employees access to reskilling within a year.
A Third of U.S. Companies Already Offering Upskill Training
Training that improves and builds upon an employee’s existing skill set is already being offered by approximately 1 out of 3 companies in the U.S. Of the firms that don’t, 59% have plans in place to offer it within 12 months.
Training ROI & Metric Statistics
Organizations Spend an Average of $1,200 per Employee on Training & Development
| Change in Training Expenditure per Employee | |||
|---|---|---|---|
| Business or Organization Size ↓ | Year → | 2021 | 2022 |
| Small (100 – 999 employees) | $1,433 | $1,396 | |
| Medium (1,000 – 9,999 employees) | $902 | $826 | |
| Large (10,000+ employees) | $722 | $1,689 | |
| All Companies | $1,071 | $1,207 | |
This is an average that is taken across all businesses of all sizes. Small businesses typically spend more per employee on training than medium and large businesses.
Only 48% of Companies Measure the ROI of Training Programs
Despite the obvious fact that employee training should help employees and employers develop and improve, around half of the companies with such training programs fail to measure how effective they are.
Businesses that Invest in Training Their Sales Team Enjoy a 24% Increase in Profit
A study of the differences between the performance of sales teams that received ongoing training from their employer versus those that didn’t, discovered the trained team generated a 24% higher profit margin for their employer.
Companies That Offer Employee Training Have 34% Lower Staff Turnover
The same study discussed in the previous statistic also found that the organizations with employee development and training opportunities were able to hold onto workers around a third better than those without a clear development pathway for workers.
$4.53 Return on $1 Spent
Studies and surveys carried out by talent development experts show that on average, employers will see up to a 450% return on their employee training spending.
Learner Satisfaction & Performance Improvement Are Most Used Metrics
The most widely used metrics that employers use to monitor the effectiveness of their training programs are employee job satisfaction change and productivity improvements.
Monitoring Learner Engagement Boosts Training Completion Rate by 46%
Organizations that actively monitor the progress employees make while participating in company training and development programs typically see employees complete the training around 50% more often.
L&D Professionals Prefer Using Vanity Metrics
| Rank | Metric |
|---|---|
| 1 | Employee Satisfaction (via Survey) |
| 2 | Employee Satisfaction (Informal or Qualitative Feedback) |
| 3 | Number of Employees Participating in Training |
| 4 | Employee Performance |
| 5 | Number of Training Courses Each Employee Completes |
| 6 | Improved Performance Reviews |
| 7 | Team or Organization Metrics |
| 8 | Improved Productivity |
| 9 | Improved Employee Retention |
| 10 | Number of Hours Spent Learning |
| 11 | Progress Towards Filling Skill Gap |
| 12 | Number of New Skills Learned per Learner |
L&D pros prefer to use vanity metrics such as learner satisfaction, training completion rates, and the number of employees participating in training rather than business metrics like performance improvement and productivity change to measure the effectiveness of employee training.
Challenge & Trend Statistics
What Employees Want to Learn & What Employers Provide Are Different
| Training Employees Want vs Training Employers Provide | ||
|---|---|---|
| Type of Training | Employees Who Want This Training (%) | Employers Who Provide This Training (%) |
| Time Management | 42% | 61% |
| Communication | 44% | 54% |
| Leadership | 54% | 53% |
| Critical Thinking | 42% | 49% |
| Innovation | 36% | 39% |
| Adaptability | 25% | 34% |
| Assertiveness | 27% | 25% |
When employees were asked what type of soft skill training they would most like to receive, leadership training was the most frequently chosen. The biggest focus for employers was time management.
72% of HR Managers Say Mental Health & Well-Being Training Is Desired
Although L&D budgets have increased significantly in recent years, almost three-quarters of HR managers say that budgets haven’t increased enough to invest in mental health and well-being training.
30% of Workers Say They Have Received No Workplace Training in 5 Years
Even though more employers than ever have made sure that they have employee training and development programs in place, it appears that many of them are just for appearances. Almost 1 out of 3 workers say that they have received no formal training from their employer in the last 5 years.
40% of Employees Who Don’t Receive Any Training Within First Year Will Leave
Roughly 4 out of every 10 people you employ will leave their position if they don’t receive any training within the first year of working for you.
54% of HR Managers Say Managers & Leaders Still View L&D as a Cost
Although it is people in leadership positions who make the most noise about a skills shortage, half of HR managers claim that leadership roles still view employee training as a business cost, rather than as a business investment.
33% of Employees Say Motivation Is Biggest Challenge
A third of workers say that they struggle to get motivated for employee training. The primary reasons cited as the cause of this are because employees are already feeling overworked or the training isn’t relevant to their role.
Half of Employees Don’t Have Time for Development
49% of employees say that they don’t have the time to spare to take part in employee training programs since they already have too many responsibilities to take care of. Employers need to create an environment that prioritizes learning over form-filling.
Up to 80% of CEOs Believe Skill Gap Is a Threat to Business
As many as 8 out of 10 CEOs are overtly worried that the shortage of skilled workers is a threat to the survival of their business as key roles and functions aren’t being filled.
74% of Organizations Plan to Continue with Remote or Hybrid Training
Before the pandemic, most employee training was performed by experts in person in a classroom style. The pandemic moved this all online, and now, post-pandemic, three-quarters of employers plan to either continue with training exclusively online or with a hybrid approach.
73% of L&D Experts Predict Lower Instructor-Led Training Costs
The shift to remote work that was caused by the pandemic has changed the way that organizations are providing employee training too, with more being done online than in person. This explains why three-quarters of L&D experts think ILT spending is going to keep falling.
54% of L&D Professionals Struggle to Measure Impact of Training Programs
More than half of L&D professionals state that measuring how well training programs perform is difficult. This is likely because employer and employee expectations differ, with each looking to gain something different from the experience.
68% of Organizations Believe They Have Insufficient Training & Development Budgets
L&D budgets are expected to grow again this year, but over two-thirds of employers still think the budget isn’t enough to address the widening skill gap.
80% of Organizations Are Already or Plan to Use Microlearning in Training Programs
Learning through focused sessions that last around 10 minutes and are repeated frequently is a favorite training method of employers. Roughly two-thirds of employers already use this training method or plan to use it in the near future.
77% L&D Professionals Say Their Job Role Is Becoming More Cross-Functional
| Function | L&D Professionals Who Report Increased Involvement (%) |
|---|---|
| Talent Management | 56% |
| Employee Engagement | 56% |
| Diversity & Inclusion | 53% |
| Department Heads | 48% |
| Talent Acquisition | 47% |
Learning and development professionals report that their job has become varied and more involved in the past year.
82% of L&D Professionals Think AI Will Play a Crucial Role in Training & Development
L&D teams across the globe, but particularly in the U.S. and Europe, believe that generative AI is going to help create more personalized and better-performing training programs for employees and employers in the near future.
52% of Organizations Have Diversity & Inclusion Training Programs
Employee training programs don’t have to be focused on employee performance or skills, they also train employees on how to be more inclusive and how to work with a diverse set of people. Today, roughly half of organizations in the U.S. provide employees with training programs aimed specifically at diversity and inclusion.
59% of Employees Prefer Continuous, On-the-Job Learning
A trend that carries across industries is the employee preference for on-the-job training. This makes sense, as studies have shown that as much as 70% of a person’s abilities originate from on-the-job experience.
62% of Employers are Reskilling Employees for Digital Future
Worldwide, 6 out of 10 employers already have employee training programs aimed at preparing their employees for a work environment that includes more use of AI, automation tools, and other digital workplace technologies.
More Companies Using AI to Personalize Employee Training Programs
Approximately 4 out of 10 of the largest companies in the U.S. already use AI and automation technologies in their employee development programs. This is expected to become ubiquitous across all industries in the near future.
Work Skill Sets Have Changed by 25% Since 2015
If an employee had been working the same job for the last 15 years, they would have seen the skill set requirements to do the job effectively change by approximately 25%. By 2027, this is expected to hit 50%.
The Global Workforce Will be Missing 85 Million Skilled Workers by 2030
Humans are not keeping up with the speed with which technology is changing the way that we work. Currently, there is an estimated 40 million skilled worker shortfall. This is forecasted to more than double by 2030.
L&D Professionals Are Working More Closely with Leaders than Before
| Annual Change in L&D Professional Working with Leaders (%) | ||
|---|---|---|
| Year | Working with Chief HR Officer | Working with Other Executive Leadership |
| 2022 | 43% | 39% |
| 2023 | 50% | 44% |
Year-over-year, there has been a 7% increase in the number of L&D professionals collaborating more closely with executives and business leaders.
55% of L&D Professionals Own Diversity & Inclusion Training Programs
The last year witnessed a 4% climb in full or partial ownership of diversity and inclusion training programs is on the rise among L&D professionals.
41% of Organizations Use Diversity Training to Improve Retention
A survey of L&D professionals registered on LinkedIn Learning found that approximately 4 out of 10 report that the organizations they work for are already using diversity and inclusion training programs.
Managers Aren’t Encouraging Employees to Learn
While managers often say all the correct buzzwords of the day, the data shows that they often don’t actually back up their words with actions. Only 35% of employees who took part in employer-provided training said that they were encouraged to do so by their immediate manager.
Presentation & Analytical Skills Most In-Demand L&D Skills
Just like the rest of us, L&D professionals need to make sure their skills are up to date, too. Presentation and analytical skills are the two skills employers want from L&D professionals right now.
84% of Mandatory or Compliance Training Is Conducted Online
More than half (56%) of mandatory and compliance training conducted by employees in the U.S. is carried out exclusively online. A further 28% is carried out mostly online.
48% Decline in Outsourced Training
The average amount that employers in the U.S. spend on outsourced training each year fell to $197,519.
Most Organizations Provide Employee Training Once Every 1 or 3 Months
A survey of HR managers and L&D professionals in the U.S. discovered that employee training was provided once a month or every 3 months by 36% of employers.
Employee Training & Development Success Statistics
78% of Businesses Say Employee Training Programs Improve Employee Performance
Business owners are mostly in agreement that providing training and development opportunities to workers improves their general performance.
70% of Employees Think Training & Development Have Aided Career Growth
This statistic shouldn’t surprise any readers. Employees that receive training from their employer are generally happier and 7 out of 10 say that the training they received directly contributed to the progression of their career.
82% of Employees Say Training Helped Them Adapt to Change Better
An employee’s confidence in their ability to perform the job being asked of them is a surprisingly undervalued element of what makes an effective worker. Comprehensive training makes most employees feel more confident in what is required of them and makes them better at adapting to change.
92% of Employees Appreciate Employers that Invest in Employee Training
An overwhelming majority of workers value an employer’s commitment to training, emphasizing its positive impact on their job satisfaction, career development, and motivation.
21% Higher Employee Engagement for Companies with Robust Employee Development Programs
Part of the benefit of quality employee training programs is that they increase worker engagement by 21%. A more engaged worker is (typically) a more productive worker.
Companies with Effective Training Programs Are 46% More Likely to be Strong Performers
Employee L&D programs reward the businesses and companies that provide them by making them more competitive. Studies show that organizations that provide solid employee training programs are almost 50% more likely to be leaders within their field.
Best Performing Companies Fully Train 84% of Employees
The organizations that perform the best all have one thing in common. They train an average of 84% of their employees in everything they need to do the job well. The worst-performing companies only do this for 16% of their workers.
Clear Development Plans Make New Employees Happier with Onboarding Process
When new employees are provided with a clear plan of how they can progress their career at an organization, they are 350% more likely to say that the onboarding process they received was “exceptional.”
Frequently Asked Questions
Why Is Employee Training & Development Important?
Employee training and development is crucial for enhancing employee skills, increasing job satisfaction, and retaining talent.
How Do Employee Training & Development Programs Help Employers?
Employee training and development programs cut staff turnover rates, improve worker productivity, and improve the employer’s ability to adapt to change.
Are There Any Employee Training & Development Best Practices I Should Be Aware of?
L&D experts suggest best practices include using varied learning methods, offer continuous scheduled training, and aligning training programs with your organization’s goals.
What Are Some Cost-Effective Approaches to Employee Training & Development?
A Learning Management System (LMS) allows you to deliver employee training at a much lower cost than in-person classroom training.
What Are the Potential Consequences of Neglecting Employee Training & Development?
The most immediate effects are reduced worker productivity and engagement. These issues usually contribute strongly to higher employee turnover, too.
Sources
Research.com, Zippia, Indeed, Gallup, LinkedIn, US Chamber, TD.org, BLS.gov.
