Employee training is transforming. With the skills gap in the job market growing, companies realize the importance of investing in their employees' education.
Traditional methods like classroom training are no longer as effective as they used to be, and organizations are seeking innovative ways to keep their teams up-to-date with new technologies and skill programs.
This article will delve into 10 employee training statistics showing how workforce education is changing in 2023.
In 2023, "quiet quitting" has become a noticeable trend, according to Gallup. This term describes a situation where over 50% of the U.S. workforce isn't working the “extra mile.”
This issue has been aggravated by the drop in U.S. employee engagement, increasing actively disengaged workers to 18%.
Based on MetLife's annual U.S. Employee Benefit Trends Study, companies must consider training their current workforce to change this scenario, especially considering that 35% of employees ranked Learning and Development (L&D) as one of the top three elements in their employee experience.
While competitive salaries and flexibility remain critical in today's competitive job market, emphasizing employee development offers additional advantages, such as job satisfaction, increased loyalty, and better retention rates.
But how is employee training currently going?
1. In 2023, 59% of employees have no workplace training
According to a survey published by Forbes in April of 2023, 59% of employees report having received no workplace training. This finding highlights a curious trend in which many employees resort to self-taught skills despite acknowledging the importance of exercise for personal growth and team improvement.
Training is sometimes overshadowed, as it's not seen as an exciting investment for organizations but rather as an expense, leading a significant portion of the workforce to go without it.
But is it actually an expense or not?
2. 35% of students were encouraged to learn by their managers in the last six months of 2023
With employee retention taking center stage more than ever before. What's the key to retaining your team?
Training and development might hold the answer. According to the latest LinkedIn Workplace Report, only a third of learners received the nudge they needed from their managers to enhance their skills in the last six months of 2023.
3. Most-wanted skills for jobs have changed by around 25% since 2015
Keeping hard and soft skills up to date can set workers apart as a sought-after talent, benefiting their career growth and the success of their businesses, regardless of the larger economic landscape.
However, remember that skill sets have seen significant shifts, changing by approximately 25% since 2015, and some studies anticipate this transformation rate will double by 2027.
Communication, leadership, and teamwork skills are highly prized, especially in the era of hybrid work.
Employee Training Statistics in 2023
In the world of employee training, frequency and content quality are critical. Most organizations are now providing training monthly or once every three months. Surprisingly, one-third of employees prefer quarterly training sessions, but only a few companies offer training as needed.
But how exactly do companies actually train their employees? Let's explore more in-depth to uncover the key insights in this article.
4. 36% of organizations are most likely to provide training once a month or once every three months
This training frequency matters for employees. Research from SHRM shows that most companies train their workers monthly (36%) or once every three months (36%).
Interestingly, 33% of employees like getting trained every quarterly session, but only 5% of organizations offer training whenever needed.
5. Around 57% of companies invest between $500 and $3,000 per employee in their training
While some may consider it risky to spend on training for employees who leave, both organizations and employees view Learning and Development (L&D) as an effective retention strategy and a valuable investment in their future.
Companies are dedicating substantial resources to employee training. According to recent surveys, at least 57% invest between $500 and $3,000 per individual.
Additionally, only 9% of organizations allocate less than $500 for each employee's training, while 15% invest between $3,000 and $5,000 per worker.
6. Only 10% of the $200 billion spent yearly on corporate training in the U.S. delivers real results
The U.S. spends around $200 billion annually on corporate training programs and Learning Management Systems (LMS), which are crucial for any organization's success.
However, a study from Harvard Business Review revealed that only 10% of that $200 billion produces meaningful results.
According to the magazine, the challenges relate to the gap between what workers learn in these programs and how they apply that knowledge in their jobs.
On top of that, these programs can be time-consuming, and some companies still expect workers to manage their regular schedules.
Employee training challenges
Today, the talent competition is more intense than ever, with employees having more say in their careers.
Job seekers now demand flexible and continuous skill improvement from their employers. At the same time, organizations face the dual challenge of retaining their top talent while filling critical roles amidst the ongoing hiring crunch.
These stats explore the employee training challenges of our times and offer insights into why fostering a culture of professional development for both employers and job seekers.
7. 35% of HR managers say a significant challenge lies in obtaining the proper training content tailored to specific requirements for organizations
Creating effective Learning and Development (L&D) programs is difficult for organizations. In a study by SHRM, 35% of HR managers reported that a big challenge is getting the right training content that fits their specific needs.
On the other hand, employees mentioned their obstacles are related to needing more time to finish workplace training (25%), getting programs that don't match their job (24%), and having training materials that need to be updated (21%).
To make things more complicated, more than a quarter of HR managers (26%) need help to get support from the leadership for their L&D efforts.
8. 70% of employees prefer online/self-paced courses
Understanding how employees like to learn is crucial for retaining them. With remote and virtual learning becoming more common, employees have different options.
Some studies show that about 70% of employees prefer online self-paced courses. Following that, 63% opt for online training with an instructor, and the same percentage prefers in-person learning with an instructor.
Hybrid educational options are also quite popular, with 62% of employees showing interest.
9. 81% of employees are interested in self-management training
Alongside traditional job-related training, many employees surveyed by SHRM are actively seeking skills they can apply at work and in their personal lives, including mental health and well-being, financial wellness, and social skills.
For instance, more than 4 out of 5 employees interviewed (81%) are interested in self-management training.
In response to this demand, about 77% of companies are getting ready to offer training in life skills, such as goal setting, self-motivation, and stress management, within the following year.
10. 93% of employees would stay at a company longer if it invested in their careers
A recent Work Institute study showed that since 2021, in the U.S., employee turnover has taken a toll on businesses, draining over $700 billion only that year. But what's driving these high-stakes departures?
According to Gartner, 93% of employees are eyeing the exit door unless their companies show some commitment to their career growth.
According to the survey from 2022, employees lose engagement with jobs that leave them stuck in one place.
Summary: Employee Training Statistics
- In 2023, 59% of employees have no workplace training.
- Most-wanted skills for jobs have changed by around 25% since 2015.
- 36% of organizations are most likely to provide training once a month or once every three months.
- Around 57% of companies invest between $500 and $3,000 per employee in their training.
- Only 10% of the $200 billion spent yearly on corporate training in the U.S. delivers real results.
- 35% of HR managers say a significant challenge lies in obtaining the proper training content tailored to specific requirements for organizations.
- 70% of employees prefer online/self-paced courses.
- 81% of employees are interested in self-management training.
- 35% of students were encouraged to learn by their managers in the last six months of 2023.
- 93% of employees would stay at a company longer if it invested in their careers.
How much can companies save on employee training costs through eLearning?
Investing in traditional, in-person employee education can result in substantial travel, food, transportation, and more expenses. This is why eLearning offers a cost-effective alternative.
For instance, data shows companies can save between 50% and 70% on employee training costs by adopting eLearning methods.
It's a well-known story of how IBM's transition to virtual learning in 2000 reduced its learning-related expenses by up to 30%, amounting to $200 million in savings previously spent on face-to-face education programs.
How many employees prefer to learn from their workplace?
A substantial 68% of employees prefer to engage in learning and training at work.
In 2020, a LinkedIn study reported the impact of COVID-19 in accelerating the shift towards eLearning, showing that 66% of professionals expected their companies to increase spending on employee training programs.
What is the current size of the corporate eLearning market?
According to studies, the corporate eLearning market has grown significantly, surpassing $315 billion in 2021, and it is on track to exceed $450 billion by 2028.
That's no coincidence; in 2022, 62.5% of the global population had Internet access, and innovative companies leveraged this to train employees efficiently and cut costs.
In the changing workplace landscape, where many employees lack training, investing in their career growth is crucial. It's a retention tool that benefits both employees and the company.
Losing a valuable team member can lead to a costly chain reaction of turnover, impacting institutional knowledge and your bottom line.
Prioritizing development sends a clear message: your company values its employees and sees them as part of the future. This mutual commitment ensures long-term success.
- How the Pandemic Transformed Workforce Skill Needs | Wiley
- Is Quiet Quitting Real?
- Workforce Insights Hub
- Why Training Is An Investment, Not An Expense
- 2023 Workplace Learning Report
- L&D puts people and skills at the center of organizational success.
- 2022 Workplace Learning & Development Trends | Research Report 2022 | SHRM
- The Future of Leadership Development
- Build Learning into Your Employees’ Workflow
- 2022 Retention Report by Work Institute
- Employees Seek Personal Value and Purpose at Work. Be Prepared to Deliver.