Overview of the Study and Respondents

The 2024 edition of this long-running industry report by Training Magazine offers one of the most comprehensive snapshots of training trends in the U.S., covering budgets, staffing, and delivery methods. Conducted between April and July 2024, the survey gathered insights from 251 organizations with 100 or more employees, representing a wide range of industries and business sizes. Small companies (100–999 employees) made up 36% of respondents, midsize organizations (1,000–9,999 employees) accounted for 46%, and large enterprises (10,000+ employees) comprised 18%. Participants included a mix of roles, with over half in management positions and many holding influence over training-related purchasing decisions.

• 62% of respondents help identify training needs

• 68% recommend purchases, while 18% make final decisions

• 24% were instructional designers or developers

Spending Trends and Budget Allocations

Overall, U.S. training expenditures fell by 3.7% in 2024 to $98 billion. Payroll costs for training staff dropped 4% to $60.6 billion, though spending on outside products and services rose sharply by 23% to $12.4 billion. While large companies saw the largest budget cuts, midsize companies increased their training investments slightly. On average, companies spent $774 per learner (down from $954 in 2023), and employees received an average of 47 hours of training per year. Top spending priorities included onboarding (13% of budget), compliance, and management training (both at 12%).

• AI training entered the budget at 4% for the first time

• Management/supervisory training remains a top funding priority (36%)

• Companies focused future training goals on improving effectiveness (30%) and increasing usage (22%)

Delivery Methods and Learning Technology Use

Training delivery methods continue to evolve post-COVID. Online and computer-based learning made up 34% of training hours, with virtual classrooms and instructor-led sessions accounting for 27% each. Blended learning use declined to 24%. Mobile, social, and immersive technologies like VR and AR remained limited in adoption. Larger companies showed higher usage of advanced tech such as AI (46%) and VR (22%).

• 91% used online learning for compliance training

• Learning management systems (LMS) are used by 90% of companies

• AI use in training delivery jumped from 9% to 25% in one year

• In-person learning returned in areas like leadership, onboarding, and soft skills

Outsourcing and Future Outlook

Average spending on outsourced training dropped from $322K in 2023 to $241K in 2024, though it still represented 6% of total training budgets. Large companies spent the most on outsourcing, often relying on external providers for instruction and content development. Most organizations (88%) expect to maintain current outsourcing levels in 2025. While midsize firms are more likely to continue outsourcing, small and large organizations are slightly more inclined to bring functions in-house.

• 56% outsource instruction/facilitation

• 27% outsource LMS hosting; 86% keep LMS admin and learner support in-house

• The most commonly outsourced areas: facilitation, LMS ops, and custom content

• No major shifts in outsourcing trends expected for 2025