|
An extract from the Report's Executive Summary.
The market for training in the UK, which is examined
in this Key Note Market Report, is currently experiencing
a very difficult time — probably the most difficult
it has had to endure since the end of the so-called
dot.com boom in 2000/2001. At the same time, the Government
is implementing more changes in its support for training,
with the aim of raising skills throughout the workforce.
Laudable though its aims are, some of its policies and
strategies have come in for some criticism, as this
report shows.
Key Note estimates that UK employers spent £20.98bn
on off-the-job training by spring 2008, which represents
a 3% increase on the previous year. The major proportion
of this money is spent on internal training. Key Note
approximates that UK employers spend around £3.3bn
on external trainers. The Learning and Skills Council’s
National Employer Skills Survey 2008 estimates
that employers in England spent £38.6bn on training
in 2007. However, the labour costs of those receiving
training comprise 47% of this total.
The UK’s training industry is enormous and incorporates
an array of suppliers, from the traditional training
company to IT companies and professional associations.
There are also thousands of small, often family-owned
firms, as well as sole practitioners.
This report lists around 60 leading training firms
and organisations, which represent only a fraction of
the total. This industry really is huge; however, it
is also an industry under pressure. Competition appears
to be increasing, costs are rising and a growing number
of providers are feeling the need to make cut-price
offers. The training industry almost reached the point
of ‘three for the price of two’ offers.
It may be a coincidence, but Key Note has found
that more mergers and takeovers have taken place in
this industry in 2008 than in any year previously, which
suggests that firms are feeling the cold draught of
declining profitability.
This report also provides an insight into some of the
current thinking on training. Once again, Key Note has
talked to the Training Advisor at the Chartered Institute
of Personnel and Development (CIPD), Martyn Sloman,
among others, and has sampled some training courses.
The use of coaching and in-house training is increasing,
as is e-learning. Line managers are becoming more involved
in training, although there is still concern about whether
organisations really maximise the benefits of training.
Organisations are looking to broaden their employees’
range of skills, which is impacting on the training
sector. The majority of organisations continue to buy
external training, but, as the CIPD’s Learning
and Development Survey 2008 shows, a significant
proportion of employers either do not buy or have ceased
to buy training from external providers. That should
worry the training industry, and this is probably its
greatest challenge.
Key Note is forecasting a 5% fall in the total
amount spent on training up until spring 2009, followed
by a further drop of 2.5% in the succeeding 12 months.
The market is expected to start to improve in 2010/2011.
To purchase a full copy of this report from
the publishers please click here.
|
