SHRM/Achieve Survey Findings: Training Budgets, Resources and ...

SHRM/Achieve Survey Findings: Training Budgets, Resources and ...

SHRM Survey Findings: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies In collaboration with and commissioned by Achieve October 3, 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 RequirementsTraining Budgets, Resources and Strategies SHRM 2012 2 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 RequirementsTraining Budgets, Resources and Strategies SHRM 2012 3 Did your organization have a training budget in 2011? All industries (n = 3,... 57% State/local government (n = ... 72% Federal government (n = ... 70% Finance (n = ... Nonprofessional services (n = ... Health (n = ... High-tech (n = ...

Professional services (n = ... 59% 56% 55% 53% 51% Construction, mining, oil and gas (n = ... 49% Manufacturing (n = ... 49% Note: Percentages represent respondents who answered yes. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 4 What was your organizations total training budget in 2011, approximately? Industry Median Mean Standard Deviation Minimum Maximum All industries (n = 1,880) $50,000 $952,157 $12,176,362 $99 $400,000,000 Construction, mining, oil and gas

(n = 162) $50,000 $900,081 $3,643,882 $5,000 $32,000,000 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. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 5 What was your organizations total training budget in 2011, approximately? Organization Size Median Mean Standard Deviation Minimum Maximum 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.

SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 6 Approximately what percentage of this budget was for remedial education (e.g., basic math, communication skills)? Median Mean Standard Deviation Minimum Maximum All industries (n = 1,856) 1% 7% 13% 0% 100% Construction, mining, oil and gas (n = 161) 5% 9% 16% 0% 100% 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% Industry Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 7 Approximately what percentage of this budget was for remedial education (e.g., basic math, communication skills)? Median

Mean Standard Deviation Minimum Maximum 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% Organization Size Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 8 Generally, where do employees at your organization receive training? All Industries On- 81% Employer-provided off-site (other than technical or communitycollege or univers... 57%

Technical or community col... 44% College or univer... Conferences, seminars, workshops, professional organizations, ... Webinars or other online trai... Other loca... 41% 9% 4% 9% Note: n = 3,433. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 9 Generally, where do employees at your organization receive training? Construction, Mining, Oil and Gas On- 84% Employer-provided off-site (other than technical or communitycollege or univers... 67% Technical or community col... 48% College or univer... Conferences, seminars, workshops, professional organizations, ... Webinars or other online trai... Other loca... 36%

7% 4% 8% Note: n = 347. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 10 Generally, where do employees at your organization receive training? Federal Government On- 80% Employer-provided off-site (other than technical or communitycollege or univers... 58% Technical or community col... 34% College or univer... 34% Conferences, seminars, workshops, professional organizations, ... Webinars or other online trai... Other loca... 7% 5% 13% Note: n = 192. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 11 Generally, where do employees at your organization receive training? Finance

On- 85% Employer-provided off-site (other than technical or communitycollege or univers... 56% Technical or community col... 30% College or univer... Conferences, seminars, workshops, professional organizations, ... 37% 12% Webinars or other online trai... 8% Other loca... 9% Note: n = 363. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 12 Generally, where do employees at your organization receive training? Health On- 85% Employer-provided off-site (other than technical or communitycollege or univers... 51% Technical or community col... 49% College or univer... Conferences, seminars, workshops, professional organizations, ...

Webinars or other online trai... Other loca... 46% 6% 5% 7% Note: n = 441. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 13 Generally, where do employees at your organization receive training? High-tech On- 70% Employer-provided off-site (other than technical or communitycollege or univers... 62% Technical or community col... 47% College or univer... Conferences, seminars, workshops, professional organizations, ... Webinars or other online trai... Other loca... 53% 7% 6% 9% Note: n = 328. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies

SHRM 2012 14 Generally, where do employees at your organization receive training? Manufacturing On- 85% Employer-provided off-site (other than technical or communitycollege or univers... 57% Technical or community col... 64% College or univer... Conferences, seminars, workshops, professional organizations, ... Webinars or other online trai... Other loca... 43% 6% 2% 7% Note: n = 418. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 15 Generally, where do employees at your organization receive training? Nonprofessional Services On- 86% Employer-provided off-site (other than technical or communitycollege or univers... 44%

Technical or community col... 31% College or univer... Conferences, seminars, workshops, professional organizations, ... Webinars or other online trai... Other loca... 28% 6% 4% 7% Note: n = 247. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 16 Generally, where do employees at your organization receive training? Professional Services On- 77% Employer-provided off-site (other than technical or communitycollege or univers... 53% Technical or community col... 35% College or univer... Conferences, seminars, workshops, professional organizations, ... Webinars or other online trai... Other loca... 43% 10%

6% 11% Note: n = 530. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 17 Generally, where do employees at your organization receive training? State/Local Government On- 80% Employer-provided off-site (other than technical or communitycollege or univers... 61% Technical or community col... 50% College or univer... 40% Conferences, seminars, workshops, professional organizations, ... Webinars or other online trai... Other loca... 13% 3% 10% Note: n = 567. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 18 SHRM Survey Findings: Changing Employee Skills and Education RequirementsTraining 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 SHRMs membership Construction, mining, oil and gas = 491 Federal government = 356 Finance = 530 Health = 526 High-tech = 447 Manufacturing = 526 Nonprofessional services = 479 Professional services = 492 State and local government = 848 Margin of error +/-1% Survey fielded March 28-April 30, 2012 SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 19 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 SHRMs Customized Research Services, visit www.shrm.org/customizedresearch Follow us on Twitter @SHRM_Research SHRM/Achieve Survey: Changing Employee Skills and Education RequirementsTraining Budgets, Resources and Strategies SHRM 2012 20

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