Monday, December 24, 2012

Learning and Training Market 2013

It is been a busy few months for me as Kineo was acquired by City & Guilds on 30 November, and I am only now finding time to reflect and plan for next year. In the last few days I have been reviewing all the recent research reports from Bersin, Keynote, ASTD, CIPD and the Economist to identify the key learning and training trends we are likely to see in 2013. My analysis of the research reports points to the following trends in 2013:

Demand for more efficient and effective learning solutions

There remains pressure on training budgets and despite increases in some areas (Bersin found training budgets up 9.5% in the US in 2011) there is an ongoing need to prove business value. This will lead a greater focus on metrics and reporting. The good news is that companies are investing in learning solutions where there is a good business case.

A significant shift to 'on the job' as opposed to 'off the job' training

This will be supported by more informal learning, coaching, performance support and social learning.

A shift from outsourcing to internal teams

The focus on cost effective solutions and on the job training, is prompting companies to look again at their internal learning and development teams. We can expect to see some activity being bought back in house to reduce costs in specific areas.

Continual shift to technology delivered learning 

The benefits of technology based learning including reach, responsiveness, flexibility and lower cost is well established. There will be an ongoing shift to self paced elearning and virtual classrooms. Research by Pardo Fox for LPI found significant recent growth in the use of virtual classrooms.

Greater use of Apprenticeships and growing staff internally

Keynote's research found 45% of larger companies in England had used apprenticeships as part of their development strategies in the last 3 years. Globally the costs of higher education are creating a new market for work based higher level apprenticeships and on the job training and qualifications. The Economist also found that employers are struggling to recruit the right level of people and opting to recruit more raw talent and then devoting more resources to learning and development.

Greater growth in emerging markets

The general economic conditions means there is still greater growth in emerging markets and concern about Western Europe in particular.There appears to be greater investment in staff development in emerging markets partly in relation to higher growth rates but also to address concerns about talent shortages.

In summary, there is a lot for us to think about as we move into 2013 and in particular how Kineo can offer a full range of learning solutions. Our merger with City & Guilds for Business means that Kineo now has annual revenues of over £18m, and is part of a larger Group with revenues of over £120m. We can now provide comprehensive learning solutions from consultancy to elearning and from apprenticeships to accreditation. It looks like an exciting year ahead as we continue to grow Kineo to meet the market demands outlined above.