Organizations spent an average of $1,208 per employee on training and development initiatives in 2013, a slight increase over 2012 spending, according to the recently released findings of ATD’s 2014 State of the Industry report, sponsored by Skillsoft and the Ken Blanchard Companies.

As the world’s economy continues to grow, developing the knowledge, skills, and abilities of the workforce plays a valuable role in organizations. The report’s findings paint a stable and consistent picture of the talent development industry. The report shows the use of technology is significant in the delivery of training, while the role of instructors remains firm.

ATD’s 2014 State of the Industry report is based on a survey of 340 organizations of various sizes, industries, and locations. The findings for the report are pulled from two data sources: a consolidated source of all organizations; and a data source pulling from 33 BEST Award winning organizations.

Key findings are:

  • Per-employee spending slightly increased in 2013, at an average $1,208 per employee ($1,195 in 2012).
  • Ten percent of expenditures went to tuition reimbursement.
  • Direct expenditure as a percentage of profit increased from 5.9 to 7.5 percent.
  • Employees averaged 31.5 hours of training in 2013. Employees in BEST organizations used 35.5 hours, substantially lower than in 2012 (57.7).
  • The average cost per learning hour dropped from $89 to $74.
  • The top three areas of training content in 2013 were: mandatory and compliance (11.5 percent); managerial and supervisory (11.5 percent); profession and industry specific (10.8 percent); and processes, procedures, and business practices (9.1 percent).
  • Instructor-led classroom delivery continued to be the most popular method of formal learning in 2013 (54.6 percent).

The ATD 2014 State of the Industry report is available on the ATD Store. It is a free report for ATD members. ATD will host a webcast about the report’s findings on Thursday, December 18, 2014. For more information or to register, please visit 2014 State of the Industry.

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About ATD

The Association for Talent Development (ATD), formerly ASTD, is the world’s largest association dedicated to those who develop talent in organizations. These professionals help others achieve their full potential by improving their knowledge, skills, and abilities.

ATD’s members come from more than 120 countries and work in public and private organizations in every industry sector.

ATD supports the work of professionals locally in more than 125 chapters, international strategic partners, and global member networks.