The importance of employee training and development
Employee training and development is crucial for organizations to improve employee performance, boost engagement and retention, and ultimately drive business results. Investing in training helps employees gain new skills, stay updated on the latest industry trends, and feel valued by their employer. According to LinkedIn’s 2022 Workplace Learning Report, 94% of employees say they would stay at a company longer if it invested in their careers. With the right training strategy, organizations can build a skilled, future-ready workforce that delivers results today while preparing for tomorrow.
Key training and development statistics
Spending on training
| US organizations spend an average of $1,286 per employee on training each year (LinkedIn) |
| Worldwide spending on training reached $366.2 billion in 2020 (Training Industry) |
| On average, mid-sized companies spend $1.5 million on training annually (Training Industry) |
| Leading companies invest $2,500 to $2,700 per employee per year on training (ATD) |
Organizations across the world invest billions in workplace training programs each year. While spending varies by company size and industry, the highest performing companies set aside dedicated training budgets to continually develop their people.
Hours of training
| Employees receive an average of 54.3 hours of training per year (LinkedIn) |
| Management and professional roles receive over 60 hours of training annually (ATD) |
| Entry level employees receive on average 36.6 hours of training per year (ATD) |
The number of training hours employees receive each year depends on their role, experience level, and organizational priorities. More senior and client-facing roles tend to get more training time while entry level positions receive less.
Training priorities
| The top training priorities are leadership development (37%), mandatory compliance (35%), and professional skills development (34%) (LinkedIn) |
| Technical skills training (56%), soft skills training (52%), and managerial training (48%) are high priorities (SHRM) |
| Customer service skills (58%), workplace compliance (52%), and product knowledge (51%) are commonly covered in training (ATD) |
Organizations target a range of skill areas in their training plans each year. Top priorities include leadership development, compliance, technical skills, soft skills, manager capability, and customer experience.
Use of learning technology
| 93% of companies use learning management systems to deliver training online (Training Industry) |
| 61% of companies are increasing their budget for learning technology year-over-year (Training Magazine) |
| eLearning tools like videos and webinars are used by 88% of companies (SHRM) |
The use of learning technology like LMS platforms, eLearning modules, microlearning videos, and virtual classrooms is growing rapidly. These tools allow organizations to deliver more training digitally to reach global workforces efficiently and cost-effectively.
Employees receiving training
| 61% of employees receive formal training each year (ATD) |
| 79% of Millennials got training from employers in the past year (Gallup) |
| Just 49% of virtual employees receive employer-provided training (GSV) |
While a majority of employees receive formal training, many still miss out. Companies with dispersed, remote or virtual workforces face bigger challenges providing development opportunities to all staff. Younger, digitally native workers tend to get more access.
Impact on key metrics
| Companies with the most extensive training programs report 24% higher profit margins (Workforce magazine) |
| Training improves productivity in 79% of companies (SHRM) |
| Employee retention is 82% higher in organizations that train workers (Work Institute) |
Beyond building employee skills, training delivers measurable business results including increased productivity, higher profits, and improved retention. The data shows that companies should view L&D programs as strategic investments, not costs.
Key considerations for training and development
Based on the training statistics and trends, here are some important points for organizations to consider when shaping their learning and development strategy:
Make training a consistent, ongoing investment
Leading companies set aside dedicated budgets each year to train employees on an ongoing basis. One-off programs are less effective. Maintain executive buy-in by showing how training impacts key business KPIs.
Align programs to strategic priorities
The most impactful training supports overall business goals and addresses urgent skill gaps. Conduct needs assessments to identify high-priority development areas.
Support managers as coaches and mentors
Managers play a key role in staff development. Equip them with resources and training to mentor their teams and nurture growth.
Utilize technology to scale delivery
Digital learning technology expands access to training across global workforces. Leverage tools like LMS platforms, mobile apps, virtual classrooms and on-demand content.
Test and iterate
Consistently evaluate program effectiveness and solicit participant feedback. Refine and evolve training offerings to maximize impact.
Motivate learning with incentives
Encourage participation by rewarding employees for completing training with recognition, career growth and other incentives. Gamification boosts engagement.
Support career mobility
Enable staff to develop skills for other roles or departments. This expands their potential and aligns training with talent mobility programs.
Conclusion
Investing in workforce training and development must be an ongoing priority and strategic imperative for organizations in today’s disruptive, high-velocity business environment. Companies that build cultures and systems to continually educate employees – empowering them to learn new skills quickly – will gain a sustained competitive advantage.
With dynamic learning content delivered through digital platforms, supported by data-driven measurement, employers can rapidly build the skilled, agile workforces they need to survive and thrive. The statistics are clear: leading companies view learning as a key driver of employee engagement, talent retention, innovation, productivity and bottom-line business performance.
