by Peter Block
Have You Hugged Your Goalie
Business News Briefs
Formula For Success: Balance
Technology and People
Although companies in the United States are spending more on training than ever before, the gap between the leading-edge company and the average company is widening—and companies that don't bridge that gap may face bottom-line repercussions, according to a report recently released by the American Society for Training & Development (ASTD).
The report takes a look at training
data from more than 800 U.S. organizations, including
business, nonprofit and government sectors.
The findings in the report revealed that most companies increased the amount of money they spent on employees by about $150 per employee. But leading-edge firms surveyed doubled that with an average increase of $300 per employee. Typical total expenditures for training grew from $1.4 million to $2 million for average firms, and leading-edge firms increased spending from $3.4 million to $4.1 million.
Predictions for the future show the trend continuing. Projected expenditures show that the gap between the average firm and leading-edge firms will continue to widen, with the industry average increasing to $2.1 million, while leading-edge firms are projected to spend $4.7 million on training.
"Companies in this country spend 10 times as much on technology as they do on training,” Bassi said. “Leading-edge companies know that they have to make smart investments in both the workforce and technology.” This dual investment in people and technology was identified as a key characteristic in leading-edge companies.
"A company can invest all the money it wants in technology, but if there is no one around who knows how to run the machines, to fix the machines or to figure out how the machines fit in with the overall business goals, a company will never bridge the chasm between companies that thrive in a global economy, and those that fail,” Bassi said.
In Related News—Other
Improved bottom-line results were also
identified as benefits to increased training. Companies
that invest the most in workplace learning were showed to
yield higher net sales per employee, higher gross profits
per employee and a higher ratio in market-to-book