Return to our Home page Search
Click here for the hotel and hospitality news from around the globe Hotel, Travel and Hospitality Articles Videos and in-depth Interviews
Read more now
Read more now
Read more now
Global training spending finally growing again - Part 1.
Friday, 18th April 2014
Source : Joyce Gioia, Strategic Business Futurist

If you doubted that the economic recovery was here, there is little room for that skepticism now: Spending on corporate training---always a good indicator of economic activity---is now climbing. 

According to the impressive data in the just-released "2014 Corporate Learning Factbook": spending in the United States on corporate training grew by a notable 15 percent last year--- its highest growth rate in seven years. Corporate training now represents over $70 billion USD in the US and over $130 billion USD worldwide.

As we have so often lamented in the past, when companies slow down, training spending is often the first "expense" to go; what these companies are overlooking is that training is actually an important investment in its people.

Once the business recovers, they will need to have trained new hires, sales people, and leaders on the bench. Spending on training is among the most discretionary of all corporate spending areas, so its resurgence is an excellent indication of business confidence.
This significant increase follows two years of increased spending in this area (10 percent in 2011 and 12 percent in 2012), reflecting that companies are finally feeling the pinch of the frightening skills gaps about which we have reported so often.
According to this same report, more than 70 percent of organizations name "capability gaps" as one of their top five challenges, though many companies admit it takes three to five years to train "a seasoned professional" to be fully productive.
We cannot underestimate the magnitude of this skills challenge. According to recent research in the Oil and Gas industry, 60,000 petrochemical engineers are needed by 2016.  With only 8775 worldwide, graduating each year, "oil companies have to train, retrain, and jointly educate a lot of energy engineers to grow".
We are pleased that at least a percentage of companies are enlightened enough to have awakened to this critical need. Many more are needed before we will really be able to make a dent in the tremendous need for workforce development. Local workforce investment boards need the support of their communities and companies that take up this challenge should be acknowledged for their support of their communities.
This topic is so important we will cover the other half next week.
Special thanks to Josh Bersin and for this important research. For a full copy of the report, visit

© Copyright 1998-2014 by The Herman Group of Companies, Inc., all rights reserved. From 'The Herman Trend Alert,' by Joyce Gioia, Strategic Business Futurist. (800) 227-3566 or

The Herman Trend Alert is a trademark of The Herman Group of Companies, Inc. Reprinted with permission.

~ Important Notice ~
Articles appearing here contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.

Learn more about DigiJames - in room technology
 Related News  (Click title to read article)
The Indian HR storyboard - Then and Now.
Global travel industry set for decade of sustained growth.
Russia needs to capitalise on the opportunity to grow Travel & Tourism following the Sochi Games.
Travel & Tourism shown to be Asia's largest employer.
 Latest News  (Click title to read article)
International tourism: strong peak season anticipated
Thursday, 24th July 2014

Pay the room rate you feel is right
Thursday, 24th July 2014

Mercure: A new look combining innovation and authenticity
Thursday, 24th July 2014

Companies struggle to access information quickly for marketing personalization
Thursday, 24th July 2014

Ramada resort to open at Kooralbyn in Queensland
Thursday, 24th July 2014
 Latest Articles  (Click title to read article)
Beyond the New Logo, Here's Why You Must Learn from Airbnb
Thursday, 24th July 2014

China's Next Growth Milestone: Outbound Tourism
Thursday, 24th July 2014

Creating Moments of Wow
Thursday, 24th July 2014

Ritz-Carlton Brings Brand Leaders Online
Wednesday, 23rd July 2014

When Disaster Strikes - Hoteliers Loose Their Jobs
Wednesday, 23rd July 2014
 Most Read News  (Click title to read article)
Thailand Situation Updated - June 27: Thailand tourism gets stronger than ever
NH Hotel Group disposes Amsterdam asset
The Chinese Luxury Traveler - How destinations are decided and bookings made
News from around the Asia Pacific region, June 10
Hyatt to develop a luxury hotel within a historic 16th century castle

© Copyright 4Hoteliers 2001-2014 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here

Use of this web site is subject to our
terms & conditions of service and privacy policy