More Related Content Similar to Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies Similar to Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies (20) Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies1. SHRM Survey Findings: Changing Employee Skills and
Education Requirements—Training Budgets, Resources
and Strategies
In collaboration with and commissioned by Achieve
October 3, 2012
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. 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
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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
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5. What was your organization’s total training budget in
2011, approximately?
Standard
Industry Median Mean Minimum Maximum
Deviation
All industries (n = 1,880) $50,000 $952,157 $12,176,362 $99 $400,000,000
Construction, 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 $300,000,000
Finance (n = 204) $62,500 $464,917 $1,934,676 $99 $20,000,000
Health (n = 236) $50,000 $429,082 $2,148,902 $99 $30,000,000
High-tech (n = 166) $82,500 $695,443 $3,102,737 $2,000 $30,000,000
Manufacturing (n = 198) $45,000 $2,238,545 $28,426,488 $99 $400,000,000
Nonprofessional services (n = 135) $25,000 $347,003 $1,211,438 $2,500 $10,000,000
Professional services (n = 262) $40,000 $308,836 $1,634,052 $99 $25,000,000
State/local government (n = 389) $45,000 $408,893 $3,218,211 $500 $53,000,000
Note: Only respondents whose organizations had a training budget in 2011 were asked this question.
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6. What was your organization’s total training budget in
2011, approximately?
Standard
Organization Size Median Mean Minimum Maximum
Deviation
All Industries (n = 1,833) $50,000 $970,427 $12,330,812 $99 $400,000,000
1 to 99 employees (n = 393) $20,000 $32,848 $40,176 $2,000 $250,000
100 to 499 employees (n = 592) $32,500 $328,581 $3,962,200 $500 $80,000,000
500 to 2,499 employees (n = 389) $75,000 $1,333,381 $20,281,289 $99 $400,000,000
2,500 to 24,999 employees (n = 338) $150,000 $1,494,081 $4,937,848 $99 $50,000,000
25,000 or more employees (n = 121) $200,000 $4,526,273 $28,751,593 $2,000 $300,000,000
Note: Only respondents whose organizations had a training budget in 2011 were asked this question.
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7. Approximately what percentage of this budget was for remedial
education (e.g., basic math, communication skills)?
Standard
Industry Median Mean Minimum Maximum
Deviation
All 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.
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8. Approximately what percentage of this budget was for remedial
education (e.g., basic math, communication skills)?
Standard
Organization Size Median Mean Minimum Maximum
Deviation
All 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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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19. SHRM Survey Findings: Changing Employee Skills and
Education Requirements—Training Budgets, Resources
and Strategies
In collaboration with and commissioned by Achieve
Survey 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
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20. SHRM Survey Findings: Changing Employee Skills
and Education Requirements
About 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