Training and Development 2013 – Industry Statistics

industry

The following statistics are extracted from a survey report by the American Society for Training and Development (2013 State of the Industry Report, ASTD Press, December 2013. Available for purchase here).

The surveys on which the report is based were conducted mostly in 2012 and included 475 companies with an average size of 20,612 employees and an average payroll of $925M.

Of the total expenditure on training and development, 61% is for internal services, 28% for external services, and 11% for tuition reimbursement. These statistics change to 51%, 34% and 15% respectively for employees exclusively in the category Professional, Scientific, and Technical Services, which is more relevant to mining.

The average direct learning expenditure per employee is $1195 per year. This does not include cost of travel or lost work time. Direct expenditure is 3.6% as a percentage of payroll, 1.3% as a percentage of revenue, and 5.9% as a percentage of profit. These measures of expenditure help us to understand how learning is driving growth for organizations. Comparison can reveal the degree to which learning facilitates sustainable growth.

Average direct learning expenditure per employee is significantly greater ($1913 per year) for employees in the category Professional, Scientific, and Technical Services. Companies are prepared to invest 60% more than the industry average for training and development in this category.

Smaller organizations, particularly those with fewer than 500 employees, typically spend more per employee (average $1800 per year) than larger organizations. They also rely more on external services and tuition reimbursement plans.

The average number of training hours per year per employee is 30.3. This increases to 34.1 for employees in the category Professional, Scientific, and Technical Services. The average development cost per training hour is $1772 and the average delivery cost per training hour is $89 per user.

Content delivery methods include instructor-led classroom training (54%), technology-based methods (39%) and other methods (7%). Technology-based delivery methods subdivide further into:

  • Self-paced online networked: 17.0%
  • Self-paced computer non-networked: 3.0%
  • Instructor-led online synchronous: 10.3%
  • Instructor-led online asynchronous: 5.2%
  • Other: 3.8%

The distribution of training content in the categories relevant to mining includes the following.

  • Managerial and supervisory: 13.5%
  • Mandatory and compliance: 10.8%
  • Processes, procedures, business practices: 9.9%
  • Profession or industry-specific: 9.5%
  • New employee orientation: 6.4%
  • Interpersonal skills: 6.4%
  • Executive development: 6.3%

The most significant change since the previous survey in 2010 is continuation of the slow but steady decline in the percentage of training used in traditional instructor-led classrooms, from 61% to 54%.

Simon Houlding is Vice-President of Professional Development for InfoMine Inc., responsible for EduMine, the professional development division which provides learning and training programs to the global mining industry. He is a practicing professional engineer and author.

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