Training and development funding slashed

Over two-fifths of organisations have decreased funding (43%) for learning and development this year, with two-fifths (42%) anticipating a reduction and only one in 10 anticipating an increase in the next 12 months. This is the top-line finding of this year's Chartered Institute of Personnel and Development's (CIPD) Learning and Talent Development Survey of 600 organisations.

Over a half (54%) of organisations claim that their economic circumstances have declined in the past 12 months, with a third overall moving to reduce the use of external suppliers to in-house provision as a result. Encouragingly however, two-fifths report they have become even more business-focused due to the adverse circumstances.

Although companies this year have increased their training offering to a median of five days per employee (equivalent to 2009 levels), compared to four days per employee in 2010, they have also increased their use of less costly development practices such as e-learning (54%), coaching by line managers (47%), in-house development programmes (45%) and internal knowledge-sharing events (37%).

Unsurprisingly, cuts to public sector funding are having a widespread impact on learning and development. The public sector is three times as likely as the private sector to report that the funding of learning and talent development will decrease in the next 12 months (76% compared to 26%). This compares to two-fifths (19%) of public sector and over a half of private sector respondents expecting cuts last year.

The public sector are also twice as likely as their private sector counterparts to report a reduction in external conferences, workshops and events (50% compared to 28%), formal education courses (49% to 24%) and instructor-led training delivered off the job (38% compared to 21%). They are also more likely to have reduced less expensive options, such as the use of in-house development programmes (25% compared to 8%), job rotation, secondments and shadowing (27% compared to 10%).