US Companies Hike Training Budgets

November 20, 2000 ( - US companies spent $54 billion on formal training this year, with nearly two-thirds (64%) dedicated to the salaries of in-house trainers, according to a new survey.

In fact this year training budget hikes were four times more common among US employers than cutbacks, according to Training magazine’s Annual Industry Report.

Computer “Based”

Almost 40% of all employer-sponsored training in the United States today is devoted to teaching computer skills.

More than 80% of all corporate training is still delivered by live instructors, but not always with instructors in the same room as the students, as trainers in remote locations conducted 6% of “live” sessions. Thirteen percent of all courses were delivered via computer without instructor involvement.

Students interact online with other humans in 29% of all training delivered online.

More than $19 billion was allotted for outside expenditures, including customized training materials, seminars, conferences, and off-the-shelf materials. The largest increases in training expenses were at finance/insurance/banking, business services, and transportation/communication/utilities.

The purchase of training products and services from outside suppliers is still controlled by an organization’s human resources or training department more than half (60%) of the time.

The annual report details the formal training activity of US organizations with 100 or more employees, and is available at