SHRM Survey Findings: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies October 3, 2012 In collaboration with and commissioned by Achieve

This is the fourth part of a series of SHRM/Achieve survey findings titled “Changing Employee Skills and Education Requirements.” These results look at training budgets, resources and strategies. The following nine industries were included in the sample. Overall results are reported first, followed by industry-specific results for the following industries:  Construction, mining, oil and gas  Federal government  Finance  Health  High-tech  Manufacturing  Nonprofessional services  Professional services  State and local government Introduction 2 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Did most organizations have a training budget in 2011? The majority of organizations (57%) did have a training budget, though there was some variation among industries. What industries were most likely to have a training budget in 2011? Industries most likely to have a budget set aside for training were state/local government (72%), federal government (70%) and finance (59%). What industries were least likely to have a training budget in 2011? Organizations in construction, mining, oil and gas (49%) and manufacturing (49%) were least likely to have a training budget in What was the median total training budget for organizations in 2011? $50,000 was the median total training budget across industries in What industries had the highest median training budgets in 2011? High-tech ($82,500), federal government ($75,000) and finance ($62,500). In 2011, what were the median total training budgets for organizations of different sizes? – 1 to 99 employees: $20,000 – 100 to 499 employees: $32,500 – 500 to 2,499 employees: $75,000 – 2,500 to 24,999 employees: $150,000 – 25,000 or more employees: $200,000 Overall, do most employers dedicate training dollars to remedial education to make up for a lack of basic skills? No. Only a small percentage of organizations’ training budgets are dedicated to remedial education (a median of 1% and a mean of 7% across industries and organization sizes). Where do employees receive their training? The majority (81%) of employees are trained on-site, followed by employer-provided off-site training (57%) and technical or community colleges (44%). Key Findings 3 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Did your organization have a training budget in 2011? 4 Note: Percentages represent respondents who answered “yes.” SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Industry MedianMean Standard Deviation MinimumMaximum All industries (n = 1,880) $50,000$952,157$12,176,362$99$400,000,000 Construction, mining, oil and gas (n = 162) $50,000$900,081$3,643,882$5,000$32,000,000 Federal government (n = 128) $75,000$4,708,122$28,942,677$1,500$300,000,000 Finance (n = 204) $62,500$464,917$1,934,676$99$20,000,000 Health (n = 236) $50,000$429,082$2,148,902$99$30,000,000 High-tech (n = 166) $82,500$695,443$3,102,737$2,000$30,000,000 Manufacturing (n = 198) $45,000$2,238,545$28,426,488$99$400,000,000 Nonprofessional services (n = 135) $25,000$347,003$1,211,438$2,500$10,000,000 Professional services (n = 262) $40,000$308,836$1,634,052$99$25,000,000 State/local government (n = 389) $45,000$408,893$3,218,211$500$53,000,000 What was your organization’s total training budget in 2011, approximately? 5 Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Organization SizeMedianMean Standard Deviation MinimumMaximum All Industries (n = 1,833) $50,000$970,427$12,330,812$99$400,000,000 1 to 99 employees (n = 393) $20,000$32,848$40,176$2,000$250, to 499 employees (n = 592) $32,500$328,581$3,962,200$500$80,000, to 2,499 employees (n = 389) $75,000$1,333,381$20,281,289$99$400,000,000 2,500 to 24,999 employees (n = 338) $150,000$1,494,081$4,937,848$99$50,000,000 25,000 or more employees (n = 121) $200,000$4,526,273$28,751,593$2,000$300,000,000 What was your organization’s total training budget in 2011, approximately? 6 Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

IndustryMedianMean Standard Deviation MinimumMaximum All industries (n = 1,856) 1%7%13%0%100% Construction, mining, oil and gas (n = 161) 5%9%16%0%100% Federal government (n = 128) 5%9%14%0%98% Finance (n = 200) 4%8%13%0%99% Health (n = 233) 1%6%10%0%75% High-tech (n = 164) 0%4%11%0%100% Manufacturing (n = 197) 5%9%14%0%99% Nonprofessional services (n = 135) 0%7%15%0%95% Professional services (n = 261) 0%5%12%0%100% State/local government (n = 377) 0%6%12%0%100% Approximately what percentage of this budget was for remedial education (e.g., basic math, communication skills)? 7 Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Organization SizeMedianMean Standard Deviation MinimumMaximum All industries (n = 1,813) 1%7%13%0%100% 1 to 99 employees (n = 389) 0%5%12%0%100% 100 to 499 employees (n = 582) 1%7%14%0%100% 500 to 2,499 employees (n = 387) 2%7%13%0%99% 2,500 to 24,999 employees (n = 333) 5%8%12%0%99% 25,000 or more employees (n = 122) 5%8%12%0%75% Approximately what percentage of this budget was for remedial education (e.g., basic math, communication skills)? 8 Note: Only respondents whose organizations had a training budget in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? All Industries 9 Note: n = 3,433. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? Construction, Mining, Oil and Gas 10 Note: n = 347. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? Federal Government 11 Note: n = 192. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? Finance 12 Note: n = 363. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? Health 13 Note: n = 441. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? High-tech 14 Note: n = 328. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? Manufacturing 15 Note: n = 418. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? Nonprofessional Services 16 Note: n = 247. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? Professional Services 17 Note: n = 530. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Generally, where do employees at your organization receive training? State/Local Government 18 Note: n = 567. Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

Survey Methodology SHRM Survey Findings: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies In collaboration with and commissioned by Achieve Response rate = 18% 4,695 HR professional respondents from a randomly selected sample of nine different industries in SHRM’s membership  Construction, mining, oil and gas = 491  Federal government = 356  Finance = 530  Health = 526  High-tech = 447 Margin of error +/-1% Survey fielded March 28-April 30, 2012  Manufacturing = 526  Nonprofessional services = 479  Professional services = 492  State and local government = SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012

SHRM Survey Findings: Changing Employee Skills and Education Requirements For more survey/poll findings, visit For more information about SHRM’s Customized Research Services, visit Follow us on Twitter About SHRM Research 20 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies ©SHRM 2012