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
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies©SHRM 2012
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.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies©SHRM 2012
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?
Note: Only respondents whose organizations had a training budget in 2011 were asked this question.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies©SHRM 2012
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)?
Note: Only respondents whose organizations had a training budget in 2011 were asked this question.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies©SHRM 2012
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)?
Note: Only respondents whose organizations had a training budget in 2011 were asked this question.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies©SHRM 2012
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.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
10
Generally, where do employees at your organization receive training? Construction, Mining, Oil and Gas
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
84%
67%
48%
36%
7%
4%
8%
Note: n = 347. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
11
Generally, where do employees at your organization receive training? Federal Government
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
80%
58%
34%
34%
7%
5%
13%
Note: n = 192. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
12
Generally, where do employees at your organization receive training? Finance
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
85%
56%
30%
37%
12%
8%
9%
Note: n = 363. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
13
Generally, where do employees at your organization receive training? Health
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
85%
51%
49%
46%
6%
5%
7%
Note: n = 441. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
14
Generally, where do employees at your organization receive training? High-tech
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
70%
62%
47%
53%
7%
6%
9%
Note: n = 328. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
15
Generally, where do employees at your organization receive training? Manufacturing
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
85%
57%
64%
43%
6%
2%
7%
Note: n = 418. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
16
Generally, where do employees at your organization receive training? Nonprofessional Services
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
86%
44%
31%
28%
6%
4%
7%
Note: n = 247. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
17
Generally, where do employees at your organization receive training? Professional Services
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
77%
53%
35%
43%
10%
6%
11%
Note: n = 530. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
18
Generally, where do employees at your organization receive training? State/Local Government
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
80%
61%
50%
40%
13%
3%
10%
Note: n = 567. Percentages do not total 100% due to multiple response options.
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012
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
SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies©SHRM 2012