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

SHRM Survey Findings: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies

October 3, 2012

In collaboration with and commissioned by Achieve

2

• 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

Introduction

SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies©SHRM 2012

3

• 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%).

Key Findings


4

Did your organization have a training budget in 2011?

All industries (n = 3,319)

State/local government (n = 544)

Federal government (n = 185)

Finance (n = 348)

Nonprofessional services (n = 242)

Health (n = 429)

High-tech (n = 316)

Professional services (n = 518)

Construction, mining, oil and gas (n = 334)

Manufacturing (n = 403)

57%

72%

70%

59%

56%

55%

53%

51%

49%

49%

Note: Percentages represent respondents who answered “yes.”

SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

5

Industry Median Mean StandardDeviation 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

What was your organization’s total training budget in 2011, approximately?

Note: Only respondents whose organizations had a training budget in 2011 were asked this question.


6

Organization Size Median Mean StandardDeviation 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

What was your organization’s total training budget in 2011, approximately?



7

Industry Median Mean StandardDeviation 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%

Approximately what percentage of this budget was for remedial education (e.g., basic math, communication skills)?



8

Organization Size Median Mean StandardDeviation 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%

Approximately what percentage of this budget was for remedial education (e.g., basic math, communication skills)?



9

Generally, where do employees at your organization receive training? All Industries

On-site

Employer-provided off-site (other than technical or communitycollege or university)

Technical or community college

College or university

Conferences, seminars, workshops, professional organizations, etc.

Webinars or other online training

Other location

81%

57%

44%

41%

9%

4%

9%

Note: n = 3,433. Percentages do not total 100% due to multiple response options.


10

Generally, where do employees at your organization receive training? Construction, Mining, Oil and Gas

On-site






Other location

84%

67%

48%

36%

7%

4%

8%

Note: n = 347. Percentages do not total 100% due to multiple response options.


11

Generally, where do employees at your organization receive training? Federal Government

On-site






Other location

80%

58%

34%

34%

7%

5%

13%



12

Generally, where do employees at your organization receive training? Finance

On-site






Other location

85%

56%

30%

37%

12%

8%

9%



13

Generally, where do employees at your organization receive training? Health

On-site






Other location

85%

51%

49%

46%

6%

5%

7%



14

Generally, where do employees at your organization receive training? High-tech

On-site






Other location

70%

62%

47%

53%

7%

6%

9%



15

Generally, where do employees at your organization receive training? Manufacturing

On-site






Other location

85%

57%

64%

43%

6%

2%

7%



16

Generally, where do employees at your organization receive training? Nonprofessional Services

On-site






Other location

86%

44%

31%

28%

6%

4%

7%



17

Generally, where do employees at your organization receive training? Professional Services

On-site






Other location

77%

53%

35%

43%

10%

6%

11%



18

Generally, where do employees at your organization receive training? State/Local Government

On-site






Other location

80%

61%

50%

40%

13%

3%

10%



Survey Methodology

SHRM Survey Findings: Changing Employee Skills and Education Requirements—Training Budgets, Resources and StrategiesIn collaboration with and commissioned by Achieve

• 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 Federal government = 356 Finance = 530 Health = 526 High-tech = 447

• Margin of error +/-1%• Survey fielded March 28-April 30, 2012

Manufacturing = 526 Nonprofessional services = 479 Professional services = 492 State and local government = 848

19SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies

©SHRM 2012

20

SHRM Survey Findings: Changing Employee Skills and Education Requirements

• 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

About SHRM Research


http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://twitter.com/SHRM_Research

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

Business