lern 2009 contract training trends report

LERN 2009 Contract Training Trends Report

Julia King Tamang, LERN Senior Consultant

Not business as usual Average training expenditures (which include

training budgets and payroll) fell 11% from $1,202 per learner in 2007 to $1,075 in 2008. 2009 was predicted to continue that trend, and it seems to be so.

The average number of formal training hours dropped from 25 hours per learner in 2007 to 17.2 hours in 2008.This decline was steady in 2009, and may extend into 2010.

Making training an efficient business tool Tightening the reigns may actually be good

for our clients as they Track and control spending on training Assess the value of training programs Choose programs that are high value and that are

aligned with corporate goals

Focus on quality, value and on understanding the needs and culture of your star clients.

Work repeat business to the max this year.

Shifting priorities With tighter budgets, funding is moving away

from IT and leadership development towards mandatory content and to content very directly related to a learner’s job.

Understand your clients’ work and what will make them successful.

Online training falling off, collaborative learning is up Use of online training fell for the first time ever,

as companies turned to coaching, collaborative programs and less-costly delivery methods.

Coaching and mentoring are up The learner, with less access to training, is seeking

more informal learning, and more access to search tools as a means to find information.

Coaching programs have become especially popular and are now incorporated into 30 percent of all training programs.

Are you teaching or providing coaching, methods courses in collaborative learning?

Are you offering courses in how to maximize “informal learning” and collaborative learning programs?

Collaborative learning to grow in 2010 In 2010, use of collaborative learning

methods will grow. Communities of practice Collaboration Coaching

Companies are also finding that other types of collaborative programs (such as blogs, wikis, CoPs and expert directories) can enhance the learning experience, build social connections and enable workers to quickly find information when they need it.

Learning communities are up Group and peer-to-peer collaboration are being

facilitated through social networking tools, such as communities of practice, wikis and blogs.

In fact, the use of communities of practice doubled from 2007 to 2008, and was still growing in 2009--making this the fastest-growing segment of the learning tools market today. This growth is expected to continue.

Outsourcing is up--again With leaner staffs in 2008, companies turned

to outside instructors for a broader scope of programs. One area that has been rising steadily is the use of

external instructors and facilitators.

Sixty-nine percent of large businesses used outside professionals for facilitation and teaching—and it’s on the rise. Do you have a big enough pool of facilitators and

teachers?

Outsourcing of content development is up

More than half of large and medium companies outsource custom content development—and it’s on the rise.

Availability of informal learning content will increase  Informal Learning is similar to On the Job

Training (OJT). Just-in-time info and learning  Access to info in a format the user wants

Creation of user-generated content will increase   SME (subject matter expert) generated content, or user

generated content, is the future core of online learning.

New tools and technologies are being created to allow the subject matter expert to create rich media based content while being a novice in the use of internet based instructional design and authoring tools.

This empowers SME’s within the lines of business to create rich media training for their peer employees at a very low cost, without anyone from the training organization having to touch the material. 

Compliance-based training increases With the increase in litigation costs from employees

and customers suing companies because they were not properly trained, we are seeing an increase in compliance based training to mitigate the risk and cost of litigation.

In the healthcare industry, compliance based training is the standard as the costs of not training is greater than the cost of training.

This translates into strong growth for companies that provide testing and assessment services. Where the risk of failure is high, testing of skills will increase.

Top learning tools of 2009

Jane Knight and 160+learning professionals.

Learning tools you need to explore Twitter Facebook Blogs Wikis Google and all its tools Instant messaging Skype Audacity and other tools to create audio

presentations Webinars

Business practices in vogue Lean, leaner, leanest Collaborative learning communities Outsourcing everything but core work Virtual workers Green everything Strong branding and creation of cultures

Sell solutions Be sure you have the right name

Stop selling training—it’s a death knell Sell learning Sell results Sell customization Sell solutions Sell your knowledge of training Sell facilitation

Boost LifeTime Value for growth Increase frequency

Know your segments and focus on best customers Get certificates Be sure you have new programs and products and

identify them as new Be cutting edge Stay in touch with your customers

Increase average contract value Consider added services Reduce development and delivery costs

Customer service is in vogue again 24/7 Online chat The extra mile for your best customers

Create loyalty programs Discounts Memberships VIP service

Use webinars to reach more people Easy to create Easy to store Synchronous or asynchronous Reach a wide audience Get your instructors out there more Get your brand in front of the customer

Use your website Get your websites polished up Offer downloads

Collect emails and use them Offer email newsletters

Advertise it in your brochures, too Make content available to your clients in

mobile formats Get FAQs up so people can get over their

concerns and call you Be a PERSON on your website Have multiple sites for contract training

Let people sample your stuff You go out to them

Webinars Blogs, etc. Community programs Presence at events that business people attend

They come in to you Events “Try It” programs Facilities rentals

What hasn’t changed and probably never will.. Contract training is a people business

Relationship is everything

Learning from your colleagues in CT What is your number one challenge right now?

What was your smartest move last year?

Let’s be in touch in 2010

kingtamang@lern.org