Although we’re all familiar with the adage “doing more with less,”  the reality is that training organizations are doing less with less. With budgets cut by an average of 11%, U.S. organizations have had to cancel some of their training programs. And for the programs that remain, organizations are being more selective about who can participate.
 
As a result, employees received less training in 2009, with the average number of formal training hours dropping to 12.0 hours per learner (see Corporate Learning Factbook 2010). Training consumption dropped most severely among large businesses, which had to significantly curtail their programs. The days of massive course libraries with open enrollments have come to a halt. They have been replaced with a more prescriptive approach that seeks to match employees with appropriate development initiatives and with a focus on programs that have the greatest impact to the business.

Another trend influencing the decline in formal training is the movement to informal learning methods. Modern L&D organizations are realizing that most learning takes place outside of the classroom or online course, and they are putting in place coaching, mentoring, and social learning environments. (For examples of how organizations are putting together formal and informal elements, see our report on High Impact Learning Practices.)

In general, we don’t view the drop in formal training consumption as necessarily a bad thing.  A targeted approach makes sure that learners are getting the right development for their needs, while keeping costs in check. In addition, smart companies are carefully scrutinizing their programs and eliminating those that are low value and under-utilized. In today's business environment, L&D organizations need to redefine their priorities and put their resources into the key initiatives and programs that will drive competitive advantage.