Is Your Business Experiencing a Skill Gap? Invest More into Hiring and Training

Bersin by Deloitte’s Corporate Learning Factbook 2014 makes several important findings indicating that businesses beginning to pick up steam in this better economy should invest not just in regular resources, but in people as well. Three stats first:

Spending by U.S. businesses on corporate training grew by 15 percent in 2013 (the most in seven years).

This increase comes on the heels of 10 percent growth in 2011 and 12 percent growth in 2012.

“Capability gaps” are cited as a top-five challenge by more than 70 percent of businesses.

More Training Equals More Company Confidence

These stats matter because they show training is clearly needed–and there’s the fact that corporate training and economic activity are related. Simply put, corporate training is such a discretionary spending area that high spending on training usually correlates to high company confidence. Companies putting the brakes on some business activities suspend or decrease training. When they’re ready to hit the gas pedal again, training in all job areas (hiring, sales, managerial and so on) increases. In fact, the report showed that high-performing companies invest much more than average on training. They are consistent and systematical about their training.

Technology Reaches a Wider Training Audience

Motorola is one company that is using technology to reach two to three times its usual number of trainees. In fact, technology is a leading way to train and includes areas such as online communication, massive open online courses (MOOCs), virtual learning, self-directed video and independent study. MOOCs enable employees to train online at their own paces and to gain certification to prove their credentials.

Training as a Recruitment Tool

Training is also a valuable recruitment tool. Companies that can explain to interviewees their training philosophies and strategies give off an aura of confidence and professionalism. Applicants are more likely to leave with positive thoughts—that the companies know what they are doing and see their workers as valuable investments.

Image Source: Jirka Matousek