Survey Indicates Drop in Training Budgets and Serious Limitations in Measuring the Return on Training Investments

Expertus and Training Industry, Inc.'s Survey Results Reflect Reactions to the Tightening Economy


MOUNTAIN VIEW, CA--(Marketwire - December 3, 2008) - Expertus (www.expertus.com), a global provider of services that optimize the business impact of learning, and Training Industry, Inc. (www.trainingindustry.com), an objective and trusted expert on the marketplace for learning, recently announced the findings from their joint November 2008 study, "Measuring Learning as Budgets Tighten." The study reveals that far more training budgets are decreasing than increasing in 2009. Despite the need to demonstrate the return on increasingly limited training investments, the study found that ROI and business impact metrics are not being used very often. The full results report can be viewed at: http://www.trainingefficiency.com/system/files/Survey+Results_Learning+Measurement_+Expertus_Nov08.pdf.

For 2009, over twice as many respondents expect budget decreases rather than increases. Forty-eight percent expect their budgets to decrease in 2009, up from 41% in 2008. By contrast, only 17% expect their budgets to increase in 2009, up from 31% in 2008. Similarly, since 2008 budgets were first approved, far more saw decreases (38%) than increases (11%).

"This research offers perspective on the current business environment's impact on training budgets and how organizations are measuring their activities," said Ramesh Ramani, Founder and CEO of Expertus. "With nearly half (48%) of respondents watching their budgets decrease for 2009, the challenge becomes measuring investments and understanding their impact."

As training budgets become more limited in today's challenging economy, it is increasingly important to demonstrate the impact of training funds through effective measurements. However, this survey of corporate training professionals revealed that volume and cost metrics, as well as Kirkpatrick Level I and II evaluations, are still used far more than business impact or return on investment metrics. As a result, those metrics are seldom used to influence budget or other types of important decisions. However, when they are collected, cost, ROI and business metrics are almost always used to support budget requests.

"We weren't surprised that there is a connection between how difficult a metric is to collect and how often it is collected," added Doug Harward, CEO of Training Industry, Inc. "However, we recommend that organizations make measuring the value and impact of learning a priority. This way, training organizations can make better informed budgetary decisions about which training should be supported and which training needs to be improved."

In addition to reporting on budget changes and metrics use, this research report also provides fresh data on:

--  How cost reduction pressure is increasing;
--  Major challenges of learning measurement; and
--  Types of decisions that are well-supported by learning metrics and
    reporting capabilities.
    

To learn more on this topic, some of the survey results will be shared along with four guiding measurement principles in Expertus' related webinar on December 4, "Numbers Don't Lie: The Four Universal Truths for Learning Measurement."

To register for this free webinar, go to: http://www.expertus.com/webinar4/pr.

The survey was completed by 84 corporate and government training professionals in organizations with varying sizes throughout 19 industries. Technology companies represented 25% of all survey-takers, while banking and finance companies were represented by almost one in six respondents.

To view the full results of the study and supporting charts, visit http://www.trainingefficiency.com/system/files/Survey+Results_Learning+Measurement_+Expertus_Nov08.pdf.

About Expertus

Expertus is the leading global provider of services that optimize the business impact of learning. For more than a decade, the firm's 500+ learning management professionals have defined and implemented plans, processes and technologies that transform training organizations -- creating measurable value for the world's most successful corporations. Clients include ADP, Cisco, ConocoPhillips, EMC, Honeywell and Lockheed Martin. Every day at these and other companies, more than a million employees, customers and business partners are educated as a result of Expertus' innovative business strategies, outsourcing services and technology-rich solutions.

Based in Silicon Valley, Expertus serves its clients from offices in the US, UK and India. For more information, visit www.expertus.com, or call toll-free (877) 827-8160.

About Training Industry, Inc.

Training Industry, Inc. is an objective and trusted expert on the marketplace for learning. Its mission is to make the marketplace more efficient through the world's largest online community of training communities and through services such as Training Industry Conferences, Training Industry Quarterly Ezine, Training Industry Webinars and Training Industry Research. For more information, go to www.trainingindustry.com or call (919) 653-4990.

Contact Information: Press Contact: Alicia Hassinger CSG-PR (720) 933-8119