SHRM Survey Findings: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies October 3, 2012 In collaboration with.

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

October 3, 2012

In collaboration with and commissioned by Achieve

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• 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

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• 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


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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

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Industry Median MeanStandardDeviation

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


$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


$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.


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Organization Size Median MeanStandardDeviation

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?



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Industry Median MeanStandardDeviation

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%


0% 7% 15% 0% 95%

Professional services (n = 261) 0% 5% 12% 0% 100%


0% 6% 12% 0% 100%

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



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Organization Size Median MeanStandardDeviation

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)?



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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.


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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.


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

On-site






Other location

80%

58%

34%

34%

7%

5%

13%



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

On-site






Other location

85%

56%

30%

37%

12%

8%

9%



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

On-site






Other location

85%

51%

49%

46%

6%

5%

7%



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

On-site






Other location

70%

62%

47%

53%

7%

6%

9%



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

On-site






Other location

85%

57%

64%

43%

6%

2%

7%



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

On-site






Other location

86%

44%

31%

28%

6%

4%

7%



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

On-site






Other location

77%

53%

35%

43%

10%

6%

11%



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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 Strategies

In 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

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SHRM Survey Findings: Changing Employee Skills and Education Requirements

• For more survey/poll findings, visit www.shrm.org/surveys

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About SHRM Research


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SHRM Survey Findings: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies October 3, 2012 In collaboration with.

Documents

training dollars

offsite training

median total training

following industries

changing employee skills

budget set

remedial education

federal government n