Increase in Learning Tech Spending

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2010 was a turnaround year for many U.S training organizations. After double-digit spending cuts in each of the prior two years, training budgets began to stabilize – and even increase within many organizations . Overall, companies spent 2% more on training in 2010 than in 2009.

With budgets loosening up, many L&D organizations initiated learning infrastructure projects in 2010. The proportion of spending allocated to learning tools and technologies reached an average of 10% – nearly equaling its high of 11% in 2007. (See Figure 1 below.)

During the recession, many companies shelved their learning systems projects when finances became tight. Several companies we interviewed, including Amway, AutoNation, The Cheesecake Factory, and U.S. Oncology, resumed their technology projects in 2010 by either replacing their learning management systems or adding capabilities to their existing systems, such as talent management functionality or social learning modules.

The business services/consulting and tech sectors spent the highest percentage of training dollars on learning technology, at 13 to 14 percent. Health care companies also invested a sizeable portion of training funds to learning technologies, with 11% of their funds allocated to this category.

For more data and trends on training spending, read our Corporate Learning Factbook report.

Figure 1: Percent of Training Spending on Learning Tools & Technologies 2006-2010 

Madhura Chakrabarti

Madhura Chakrabarti leads the People Analytics and Employee Engagement research practices at Bersin by Deloitte. Previous to joining Bersin by Deloitte, Madhura worked for Dell Inc. in Austin, Texas. At Dell, Madhura led the annual global engagement survey for 110,000 employees; culture assessments for mergers and acquisitions; and several people analytics studies. Subsequently, she also served as the Organizational Development (OD) Strategist for Global Operations and Client Solutions, the largest business unit where she led and supported multiple talent management initiatives for the business. Prior to Dell, Madhura worked for Ford Motor Company and Aon Hewitt where her work focused on design and statistical validation of pre-employment assessments used for hiring. Madhura regularly presents at international conferences like SIOP. Her work has been published in Journal of Business and Psychology, and Handbook of Positive Psychology and Work. Madhura has a bachelor's degree in Psychology from University of Delhi, India and an M.A. and a Ph.D. in Industrial/Organizational Psychology from Wayne State University, Michigan.

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