Employer investment in learning and development continues to rise

Increase of $89 per employee since 2014-15: Survey

Employer investment in learning and development continues to rise
Employers spent, on average, $889 per employee on learning and development in 2016-17. Shutterstock

Canadian organizations’ spending on learning and development has been steadily increasing since the end of 2010.

Employers spent, on average, $889 per employee on learning and development in 2016-17, an increase of $89 per employee since 2014-15, according to the Conference Board of Canada’s latest Learning and Development Outlook.

The average number of hours of learning per employee per year is also on the rise, increasing from 25 hours in 2010 to 32 hours in 2016-17.

Canadian organizations are now spending an average of 81 cents for every dollar spent by American organizations on learning and development, representing a significant increase in the overall average of 57 cents since 2006, said the Conference Board. While still lagging the U.S. when it comes to overall spending, Canadian employers are gaining ground and the gap has narrowed, partly as a result of reduced spending by American organizations.

“The trend in increased learning and development spending over the past few years indicates more than a renewed confidence in the Canadian economy — it is the result of organizations having both the capacity to invest in learning, and the knowledge of where that investment should go,” said Colin Hall, associate director of organizational excellence, learning and leadership at the Conference Board of Canada.   

“Organizations that invest in employee learning and development understand the importance of maintaining a strong knowledge-based workforce and keeping pace with dynamic, volatile, and ever-changing business environments. Organizations with strong learning cultures are focusing spending where it is needed the most allowing them to realize a return on their investment.”

Fifty per cent of the 127 Canadian organizations surveyed agreed or strongly agreed that learning is a top organizational priority for them. Organizations with strong learning cultures exhibit better overall organizational performance in the areas of employee engagement, customer satisfaction, overall productivity, and overall leadership performance compared to organizations with weak learning cultures, said the Conference board.

However, 58 per cent said they have experienced challenges in their business environments in the past few years that have directly impacted learning and development strategies or budgets.

While classroom learning remains the most common delivery method for formal learning, its prevalence is diminishing, found the survey. Instructor-led classroom delivery used to consistently make up more than half of all learning time, but has now dropped to 48 per cent in 2016-17.

Meanwhile, informal learning is on the rise as an increasing number of employees initiate their own learning. Self-paced e-learning through online courses remains firmly established as a delivery method of choice, with more than three-quarters of organizations offering it in some form, found the Conference Board.

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