Marking its 41st year, Training Magazine’s Training Industry Report continues to be the definitive source of insights on training budgets, staffing, and programs across U.S.-based corporations and educational institutions. Conducted between April and July 2022, this survey captures key trends from organizations with 100 or more employees, offering a detailed analysis of training investments and approaches across different sectors.

Survey Demographics

• Small companies (100-999 employees): 36%
• Midsize companies (1,000-9,999 employees): 43%
• Large companies (10,000+ employees): 21%

Survey participants included 57% in management positions, 20% working as instructional designers, and 20% at mid- to lower-level associate roles. Most notably, 64% of respondents had influence over purchasing decisions for training products and services in their organizations.

Training Budgets and Expenditures

• Total U.S. training spend: Surpassed the $100 billion mark for the first time, increasing by 10% to reach $101.6 billion in 2022. This growth was driven by continued investments in virtual training technologies, inflation, and the gradual return to in-person learning.
• Average budgets by company size:
  • Large companies: $19.2 million, up from $17.5 million in 2021
  • Midsize companies: $1.5 million, compared to $1.3 million the previous year
  • Small companies: $368,891, an increase from $341,505

Although payroll costs decreased slightly, spending on external products and services rose to $8.2 billion. Meanwhile, travel, facilities, and equipment expenses rebounded to $28.3 billion, nearly double the amount spent in 2021.

Budget Changes

• 44% of respondents reported an increase in their training budgets, compared to 32% in 2021.
• Reasons for budget increases included:
  • Expansion of training programs (70%)
  • Growth in training staff (56%)
  • A larger number of learners served (49%)

While larger companies spend more per capita on training, the sheer number of small companies in the U.S. makes them responsible for nearly one-third of the total training expenditures.

Training Delivery Trends

• Blended learning: Accounted for 32% of training hours, down from 43% in 2021.
• Virtual classroom/Webcasting: Contributed to 33% of training hours, slightly down from the previous year.
• In-person training: Made up 24% of training hours, as organizations cautiously return to classroom settings.
• Mobile learning: Stayed steady at 4%, while more experimental methods like augmented reality (AR) and virtual reality (VR) remained minimally used (1%).

Technology Adoption

• Learning Management Systems (LMSs): Utilized by 89% of companies, with larger organizations leading the way in adopting advanced technologies like AI and VR.
• Online training: Remains a key method for various training types, such as compliance, IT systems, and leadership development, reflecting the growing reliance on digital platforms for learning.

Outsourcing Patterns

• Training outsourcing: Saw a notable decrease, with average spending dropping from $379,038 in 2021 to $197,519 in 2022.
• Company size and outsourcing: Larger companies were more likely to outsource training compared to smaller and midsize firms, which handled more training functions internally.

Final Takeaways

This latest industry report from Training Magazine highlights how organizations are navigating the post-pandemic landscape by blending in-person and virtual learning. Training budgets have generally increased, and companies continue to explore innovative technologies to improve training efficiency and reach. As organizations adapt, training investments remain essential for developing skills and enhancing workforce capabilities.