The corporate learning market continues to grow, with company budget increases averaging 7 percent, according to the Bersin and Associates' 2007 Corporate Learning Factbook. Total training spending grew from $51.1 billion in 2005 to $55.8 billion in 2006; spending on products and services grew from $13.5 billion in 2005 to $15.8 billion in 2006. While budgets have increased, salary spending over the last four years has remained relatively flat.

In 2005, 73 cents of every training dollar went to payroll expenses; in 2006, payroll expenses were 65 cents of every dollar.

Other findings from the study include:

• Learning technologies are widely used by companies of all sizes. Almost 60% of respondents use virtual classroom technologies, 40% have learning management systems, 25 to 30% use application simulation and rapid e-learning tools, and 14% use learning content management systems.
• The average spending per learner is $1,273. The highest spending sector is technology ($2,763) and the lowest is retail ($519).
• When it comes to learning programs, sales training and management/supervisory training are the program priorities for most learning organizations.
• Outsourcing continues to grow, with highest planned increases in custom content development and LMS hosting.

Bersin & Associates claims the study is the most detailed and up-to-date view of corporate learning and development available. Said Karen O’Leonard, research director for the study, "Our rigorous research methodology, combined with the extensive survey database we have built over the last few years, gives us a unique ability to quantify key metrics and provide fact-supported analysis of important trends."

Bersin & Associates analysts will discuss findings and offer benchmarking guidance in an upcoming webinar on Tuesday, February 27, from 2:00 to 3:00 p.m. Eastern time.

About the market research report

Bersin & Associates 79-page "2007 Corporate Learning Factbook" offers corporate executives baseline metrics which can be used to assess the efficiencies of their own corporate training initiatives. The study is based on data collected by an August 2006 survey conducted in partnership with Training Magazine. The report analyzes a wide range of metrics, including: budgets, expenditures per learner, cost per student hour, program priorities, budget allocations, staffing sizes, staff to learner ratios, staff to total spending, technology usage and budgets, and outsourcing spending. The Factbook also includes 130 data points broken down by company size and industry sector, so executives can compare their own metrics with those from comparable organizations.

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