Written by: Michelle Davidson | March 14, 2024
Beyond Budget Blues: The True State of L&D in 2024
Given all the “budget blues” stories out there, you’d think learning and development (L&D) isn’t a priority for companies this year. Business education company Morning Brew has a more nuanced view about the situation. They share their insight in their report The State of L&D in 2024.
What’s interesting about the report are the respondents. Nearly 80% work in an HR-specific role. Over two-thirds are managers or above. Out of that group, 80% have some or complete buying power over purchasing decisions.
2 L&D Budget Trends to Watch
The report also revealed two dichotomies we don’t hear enough about:
• The need for L&D is acute yet not funded. Over 60% of the respondents note that leadership is the most significant gap in employee development. (Soft skills come in as a close second at 55%.) As a result, nearly two-thirds say leadership development is their top priority. However, these efforts don’t get budget love. Only 50% of smaller companies (100-499 employees) have formal programs. Industrial and manufacturing industries and small and midsize businesses (SMB) are the worst offenders. New leaders get the least support.
• Competing budget priorities appear to drive stagnant budgets for 2024. The real reason for the drop in L&D spending: lack of ROI. According to a Harvard Business Review study, only 10% of the $200 billion spent annually on corporate training in the USA yields tangible results. And the leading cause of that lackluster result is not ineffective programs. It’s that the internal culture isn’t receptive, so the new skills aren’t used on the ground.
That is why remote learning, on-demand learning, and all the trendy stuff gets agreement but not project approval. Our business case on the importance of our leadership programs is preaching to the choir. Given budget shortages, buyers are focused on making current programs effective and efficient.
And “effective and efficient” won’t happen until companies deal with the real barriers that keep new skills from being adapted. This is where we serve.
Listen: What Buyers Face in 2024 and How We Can Help
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