According to the 2024 State of the Industry report from the Association for Talent Development (ATD), the average organization spent $1,283 per employee on workplace learning in 2023. This marks a $63 increase from 2022, indicating a growing emphasis on professional development and learning initiatives in the workforce. This annual survey, which gathered data from 498 organizations across diverse industries, highlights key trends, budgets, and strategies in workplace learning.
Key Findings from ATD’s 2024 State of the Industry Report
1. Increased Spending on Employee Learning
In 2023, organizations allocated an average of $1,283 per employee for workplace learning programs. This reflects a steady commitment to enhancing employee skills and knowledge, with a $63 increase from the previous year’s average spend of $1,220. This increase in spending underscores the growing recognition of talent development (TD) as a vital function in achieving business success.
2. Talent Development’s Role in Senior Leadership
The report reveals that two-thirds of organizations now have Talent Development represented at the senior leadership level, highlighting the increasing strategic importance of TD within organizations. This alignment ensures that learning and development are prioritized as critical components of overall business strategy, especially as 57% of respondents expect the value of TD to increase significantly in the near future.
3. Preferred Learning Methods
When it comes to learning methods, organizations are continuing to use a blend of traditional and modern approaches to training:
- Traditional Classroom Training remains one of the most popular learning methods.
- Online Learning has become increasingly prevalent, offering flexibility for employees.
- On-the-Job Training, particularly coaching and mentoring, continues to be a widely used method, allowing employees to gain practical skills in real-world environments.
- Learning Technologies are also on the rise, providing innovative tools and platforms to support employee development.
4. Training Hours and Trends
The average number of formal learning hours per employee decreased slightly to 17.4 hours in 2023, down from 20.7 hours in 2022. However, organizations in sectors such as finance, insurance, and real estate were noted to have the highest training hours, with an average of 26 hours per employee. This suggests that some industries remain particularly committed to continuous skill development.
5. Training Costs and Budget Expectations
The average cost per hour of training stood at $123. Most organizations reported that they expect their training budgets to remain stable or increase in 2024, indicating ongoing investment in employee development. This is consistent with the overall trend of increasing spending on workplace learning.
6. Growth in Talent Development Teams
Around 33% of organizations reported an increase in Talent Development (TD) headcount, with the average organization employing 55 TD staff members. Positions like trainers, facilitators, HR professionals, and instructional designers were in high demand to support the growing learning needs of organizations.
7. Talent Development Departments
Approximately 40% of organizations have a dedicated Talent Development or learning department, reflecting the importance of specialized teams to manage and deliver effective learning initiatives.
Looking Ahead: The Future of Workplace Learning
As organizations continue to prioritize workforce development, the 2024 State of the Industry report paints a picture of a growing focus on continuous learning. With 57% of organizations expecting the perceived value of Talent Development to increase, the demand for effective learning solutions and skilled trainers is expected to rise in 2024 and beyond.
For professionals in the field, this presents a significant opportunity to shape the future of workplace learning. Additionally, organizations are investing in new tools, technologies, and programs to enhance learning outcomes and improve employee performance.
The 2024 State of the Industry report highlights the significant strides organizations have made in increasing spending on employee learning and development. With rising budgets, expanded TD teams, and innovative learning methods, companies are preparing their workforce for the challenges of the future. As Talent Development continues to gain strategic importance, organizations that invest in training will be better positioned to drive productivity and innovation in the coming years.
