Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies

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Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies

  1. 1. SHRM Survey Findings: Changing Employee Skills andEducation Requirements—Training Budgets, Resourcesand StrategiesIn collaboration with and commissioned by Achieve October 3, 2012
  2. 2. Introduction• This is the fourth part of a series of SHRM/Achieve survey findings titled “Changing Employee Skills and Education Requirements.” These results look at training budgets, resources and strategies.• The following nine industries were included in the sample. Overall results are reported first, followed by industry-specific results for the following industries:  Construction, mining, oil and gas  Federal government  Finance  Health  High-tech  Manufacturing  Nonprofessional services  Professional services  State and local government SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 2
  3. 3. Key Findings• Did most organizations have a training budget in 2011? The majority of organizations (57%) did have a training budget, though there was some variation among industries.• What industries were most likely to have a training budget in 2011? Industries most likely to have a budget set aside for training were state/local government (72%), federal government (70%) and finance (59%).• What industries were least likely to have a training budget in 2011? Organizations in construction, mining, oil and gas (49%) and manufacturing (49%) were least likely to have a training budget in 2011.• What was the median total training budget for organizations in 2011? $50,000 was the median total training budget across industries in 2011.• What industries had the highest median training budgets in 2011? High-tech ($82,500), federal government ($75,000) and finance ($62,500).• In 2011, what were the median total training budgets for organizations of different sizes? – 1 to 99 employees: $20,000 – 100 to 499 employees: $32,500 – 500 to 2,499 employees: $75,000 – 2,500 to 24,999 employees: $150,000 – 25,000 or more employees: $200,000• Overall, do most employers dedicate training dollars to remedial education to make up for a lack of basic skills? No. Only a small percentage of organizations’ training budgets are dedicated to remedial education (a median of 1% and a mean of 7% across industries and organization sizes).• Where do employees receive their training? The majority (81%) of employees are trained on-site, followed by employer-provided off-site training (57%) and technical or community colleges (44%). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 3
  4. 4. Did your organization have a training budget in 2011? All industries (n = 3,319) 57% State/local government (n = 544) 72% Federal government (n = 185) 70% Finance (n = 348) 59% Nonprofessional services (n = 242) 56% Health (n = 429) 55% High-tech (n = 316) 53% Professional services (n = 518) 51% Construction, mining, oil and gas (n = 334) 49% Manufacturing (n = 403) 49%Note: Percentages represent respondents who answered “yes.” SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 4
  5. 5. What was your organization’s total training budget in 2011, approximately? Standard Industry Median Mean Minimum Maximum DeviationAll industries (n = 1,880) $50,000 $952,157 $12,176,362 $99 $400,000,000Construction, mining, oil and gas $50,000 $900,081 $3,643,882 $5,000 $32,000,000(n = 162)Federal government (n = 128) $75,000 $4,708,122 $28,942,677 $1,500 $300,000,000Finance (n = 204) $62,500 $464,917 $1,934,676 $99 $20,000,000Health (n = 236) $50,000 $429,082 $2,148,902 $99 $30,000,000High-tech (n = 166) $82,500 $695,443 $3,102,737 $2,000 $30,000,000Manufacturing (n = 198) $45,000 $2,238,545 $28,426,488 $99 $400,000,000Nonprofessional services (n = 135) $25,000 $347,003 $1,211,438 $2,500 $10,000,000Professional services (n = 262) $40,000 $308,836 $1,634,052 $99 $25,000,000State/local government (n = 389) $45,000 $408,893 $3,218,211 $500 $53,000,000Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 5
  6. 6. What was your organization’s total training budget in 2011, approximately? Standard Organization Size Median Mean Minimum Maximum DeviationAll Industries (n = 1,833) $50,000 $970,427 $12,330,812 $99 $400,000,0001 to 99 employees (n = 393) $20,000 $32,848 $40,176 $2,000 $250,000100 to 499 employees (n = 592) $32,500 $328,581 $3,962,200 $500 $80,000,000500 to 2,499 employees (n = 389) $75,000 $1,333,381 $20,281,289 $99 $400,000,0002,500 to 24,999 employees (n = 338) $150,000 $1,494,081 $4,937,848 $99 $50,000,00025,000 or more employees (n = 121) $200,000 $4,526,273 $28,751,593 $2,000 $300,000,000Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 6
  7. 7. Approximately what percentage of this budget was for remedial education (e.g., basic math, communication skills)? Standard Industry Median Mean Minimum Maximum DeviationAll industries (n = 1,856) 1% 7% 13% 0% 100%Construction, mining, oil and gas 5% 9% 16% 0% 100%(n = 161)Federal government (n = 128) 5% 9% 14% 0% 98%Finance (n = 200) 4% 8% 13% 0% 99%Health (n = 233) 1% 6% 10% 0% 75%High-tech (n = 164) 0% 4% 11% 0% 100%Manufacturing (n = 197) 5% 9% 14% 0% 99%Nonprofessional services (n = 135) 0% 7% 15% 0% 95%Professional services (n = 261) 0% 5% 12% 0% 100%State/local government (n = 377) 0% 6% 12% 0% 100%Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 7
  8. 8. Approximately what percentage of this budget was for remedial education (e.g., basic math, communication skills)? Standard Organization Size Median Mean Minimum Maximum DeviationAll industries (n = 1,813) 1% 7% 13% 0% 100%1 to 99 employees (n = 389) 0% 5% 12% 0% 100%100 to 499 employees (n = 582) 1% 7% 14% 0% 100%500 to 2,499 employees (n = 387) 2% 7% 13% 0% 99%2,500 to 24,999 employees (n = 333) 5% 8% 12% 0% 99%25,000 or more employees (n = 122) 5% 8% 12% 0% 75%Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 8
  9. 9. Generally, where do employees at your organization receive training? All Industries On-site 81% Employer-provided off-site (other than technical or communitycollege or 57% university) Technical or community college 44% College or university 41%Conferences, seminars, workshops, profess 9% ional organizations, etc. Webinars or other online training 4% Other location 9%Note: n = 3,433. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 9
  10. 10. Generally, where do employees at your organization receive training? Construction, Mining, Oil and Gas On-site 84% Employer-provided off-site (other than technical or communitycollege or 67% university) Technical or community college 48% College or university 36%Conferences, seminars, workshops, profess 7% ional organizations, etc. Webinars or other online training 4% Other location 8%Note: n = 347. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 10
  11. 11. Generally, where do employees at your organization receive training? Federal Government On-site 80% Employer-provided off-site (other than technical or communitycollege or 58% university) Technical or community college 34% College or university 34%Conferences, seminars, workshops, profess 7% ional organizations, etc. Webinars or other online training 5% Other location 13%Note: n = 192. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 11
  12. 12. Generally, where do employees at your organization receive training? Finance On-site 85% Employer-provided off-site (other than technical or communitycollege or 56% university) Technical or community college 30% College or university 37%Conferences, seminars, workshops, profess 12% ional organizations, etc. Webinars or other online training 8% Other location 9%Note: n = 363. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 12
  13. 13. Generally, where do employees at your organization receive training? Health On-site 85% Employer-provided off-site (other than technical or communitycollege or 51% university) Technical or community college 49% College or university 46%Conferences, seminars, workshops, profess 6% ional organizations, etc. Webinars or other online training 5% Other location 7%Note: n = 441. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 13
  14. 14. Generally, where do employees at your organization receive training? High-tech On-site 70% Employer-provided off-site (other than technical or communitycollege or 62% university) Technical or community college 47% College or university 53%Conferences, seminars, workshops, profess 7% ional organizations, etc. Webinars or other online training 6% Other location 9%Note: n = 328. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 14
  15. 15. Generally, where do employees at your organization receive training? Manufacturing On-site 85% Employer-provided off-site (other than technical or communitycollege or 57% university) Technical or community college 64% College or university 43%Conferences, seminars, workshops, profess 6% ional organizations, etc. Webinars or other online training 2% Other location 7%Note: n = 418. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 15
  16. 16. Generally, where do employees at your organization receive training? Nonprofessional Services On-site 86% Employer-provided off-site (other than technical or communitycollege or 44% university) Technical or community college 31% College or university 28%Conferences, seminars, workshops, profess 6% ional organizations, etc. Webinars or other online training 4% Other location 7%Note: n = 247. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 16
  17. 17. Generally, where do employees at your organization receive training? Professional Services On-site 77% Employer-provided off-site (other than technical or communitycollege or 53% university) Technical or community college 35% College or university 43%Conferences, seminars, workshops, profess 10% ional organizations, etc. Webinars or other online training 6% Other location 11%Note: n = 530. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 17
  18. 18. Generally, where do employees at your organization receive training? State/Local Government On-site 80% Employer-provided off-site (other than technical or communitycollege or 61% university) Technical or community college 50% College or university 40%Conferences, seminars, workshops, profess 13% ional organizations, etc. Webinars or other online training 3% Other location 10%Note: n = 567. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 18
  19. 19. SHRM Survey Findings: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies In collaboration with and commissioned by AchieveSurvey Methodology• Response rate = 18%• 4,695 HR professional respondents from a randomly selected sample of nine different industries in SHRM’s membership  Construction, mining, oil and gas = 491  Manufacturing = 526  Federal government = 356  Nonprofessional services = 479  Finance = 530  Professional services = 492  Health = 526  State and local government = 848  High-tech = 447• Margin of error +/-1%• Survey fielded March 28-April 30, 2012 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 19
  20. 20. SHRM Survey Findings: Changing Employee Skills and Education RequirementsAbout SHRM Research• For more survey/poll findings, visit www.shrm.org/surveys• For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch• Follow us on Twitter @SHRM_Research SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012 20

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