Training and Development Activities

1768 Words7 Pages
Training & Development investments Training and development activities are becoming more associated with the core business objectives and have accepted new methods and technologies increasing the overall value of the training programs. Training section of the organization is now seen as a key business partner but at the same time it faces many challenges, with increasing economic difficulties organizations tend to reduce unnecessary overheads resulting in layoffs and budget cuts on employee development activities. In these hard times the role of training department in skill building and ensuring readiness of employees for future challenges is critical for organizations ensuring workplace inventiveness and competition. Regardless of the global economic downturn, it is encouraging to see that the organizational leadership considers skilled employees as a competitive edge and is committed to investing in employee skills. According to the findings of ASTD's 2011 state of industry report which included 400 organizations, American firms spent more than USD 170 billion on training and development activities in 2010. There was an overall increase of 13 percent in per-employee spending in 2010 although there has been an increase since 2009 but the expenditure per employee is still lower than the pre-recession era. The amount spent on per employee increased from USD 1,081 in 2009 to USD 1,228 in 2010 (See Figure 1-1). The report elaborates that 60 percent of the total expenditure
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