Investing in learning & development during tough times
Posted by Kalani Iwiula on Thu, Dec 02, 2010
Instead of abandoning learning and development in the face of their recession, UK organizations are pouring resources into developing middle managers' leadership and change-management skills as a top 2010 priority.
That's according to Henley Business School's Corporate Learning Priorities Survey 2010, which was conducted among over 2,500 HR and learning professionals. Over 60% of those completing the survey were HR Directors, Vice-President or Heads of HR or Learning & Development in some of the UK's largest employers.
The survey found that developing middle managers’ leadership skills and equipping them to deal with change were among participant organizations’ top priorities for 2010, along with developing a coaching culture and developing the capability of HR and L&D teams.
"Managing directors, CEOs, HR directors and L&D professionals have adopted a pragmatic, level-headed, measured approach when faced with the tumultuous economic climate we have endured," said Linda Irwin, Henley's executive director.
“Rather than axing development budgets and cutting leadership development, they have focused effort on those individuals who they expect will lead their organisations into a future yet to be created. Softer skills in leadership styles and in coaching, for instance, that bring out the very best in people and facilitate team working are also a priority."
Conversely, the global economic recession made 2009 a difficult year for US companies and significantly impacted corporate learning. Due to budget constraints, companies have cut training spending and staffing; eliminated programs; increasingly used informal learning methods such as coaching, mentoring, and social learning environments; and centralized training operations.
The 2010 Corporate Learning Factbook (for US corporate training investment) by Bersin & Associates found:
- The U.S. corporate training market shrunk from $56.2 billion in 2008 to $48.2 billion in 2009, a decline of 14%.
- Many organizations shed jobs in 2009. The median L&D staff fell to 6.2 training staffers per 1,000 learners, down from 7.0 per 1,000 in 2008.
- After a decline in 2008, the percentage of training funds directed toward leadership development rebounded to 24%.
How about you? Have you noticed a change in your company or industry as it relates to training or, specifically, regarding leadership learning and development?
Thanks for reading!