Time of change in Corporate Training

Increased focus on integrated performance and learning strategies will force further alignment between training and HR. On-going Learning technologies evolution and integration of self-published content and collaboration will become a significant element in enterprise learning solutions. Organizations are evolving toward shared services and building integrated business plans that incorporate learning across the organization itself.

Training budgets are increasing

According to recent research, training budgets are dramatically increasing: in the US on average by 7% in 2006-2007. This is mainly depending on 3 primary reasons:

• Economic growth in many regions is putting greater demands on training.
• Talent shortages, felt in all industry sectors, are driving hiring and training new personnel and on training current employees for new roles.
• Corporations are increasingly recognizing that learning is part of an integrated talent management process that includes recruiting, performance management, leadership development, and succession planning.

Corporate Training structure and operations are changing

The most successful learning organizations have moved away from the corporate university model to a shared services model. We define shared services as an internal business function that provides consulting and operational services to various groups throughout the enterprise. The role of a shared services organization is to support business units in achieving their business goals.
This shift is resulting in organizational changes. Shared services organizations spend more on technology and outsourced services, thereby allowing internal staff resources to focus more on strategy, business alignment, measurement, and performance consulting.

New economics are leading to increased use of outsourcing

Like IT and marketing, learning organizations are cost centers. Historically, learning has been based upon a variable cost model. With such a model, costs are directly dependent upon the number of employees trained.
However, with the advent of e-learning, learning in most companies is now based on a fixed plus variable cost model. This is because the use of e-learning requires up-front investments in technology, development tools, and content. These investments are fixed, no matter how many employees are trained. This model gives companies the ability to reach more employees and deliver more content for the same cost.
As a result of these new economics, learning organizations must reallocate resources. Delivery-based positions are being replaced with new positions in technology, content development, measurement, and support.
Because technology and sophisticated content development require specialized skills, learning organizations are relying more on outsourcing services to help meet these needs. By implementing an infrastructure that reaches many more employees at a far lower cost per hour, the training organization can selectively outsource areas, which are not core to the company’s expertise and focus.