We all have heard a lot lately about the "trillion dollar" problem of bailing out the banks and automakers to restore the economy. What if I told you that we have a TRILLION DOLLAR TRAINING PROBLEM. That's right, trillion with a "T."
The problem is transfer of training--that is, that only 15-30% of training transfers into actual use on the job to improve performance. Here's how I see it. Last year organizations spent $134 BILLION dollars on training in the U.S (according to ASTD). That means that somewhere around $100 billion of it was wasted!!! And that is only the direct cost of training--not the salaries of the people who sat in the classroom. That alone is a huge number that ought to get us alarmed.
But wait--it gets worse. Research also tells us that an 8:1 return on investment is pretty typical for good training. That means that the $100 billion we wasted would have returned about $800 billion in performance improvement if we had done the right things to make training transfer happen.
Throw in some money for all the wasted wages and salaries of the trainees and we have a
TRILLION DOLLAR TRAINING PROBLEM
That's right.....each YEAR we waste as much money as the U.S. government is spending to bail out the banks, AIG and the automakers.....EACH YEAR I said.
Imagine what the cost is worldwide.....the cost must be staggering.
I am fed up with accepting this in our profession. It is way past time that we got better. No other profession could get away with telling their CEO they are wasting 70-85% of the money they spend...why should we.
I for one am committed to doing something about it. Stay tuned to this blog and my other feeds and let's join together to fix this problem in our profession.