Training Statistics & Benchmarking

Class Size
Although How College Affects Students, by Ernest T. Pascarella and Patrick T. Terenzini, 1991, San Francisco: Jossey Bass (894 pages that syntheses over 2,600 studies) is based on the academic world, many parts of it do concern the training world. On page 87 they cite over 10 studies and 6 reviews of the research (all referenced) on the effects of class size. The consensus is that class size is not a particularly important factor when the goal of instruction is the acquisition of subject matter knowledge and academic skills. This appears to hold true across various class types (e.g. lecture, discussion). However, smaller class sizes are somewhat more effective than larger ones when the goals of instruction are motivational, attitudinal, or higher-level cognitive processes.

Putting this in perspective with the training world - it depends. For example, I used to train heavy construction equipment (e.g. bulldozers, earth-moving scrapers, scooploaders, backhoes). We used a 4-to-1 learner to trainer ratio when performing a lot of the practical exercises. When you are in a muddy field and you got 10 inches of red clay sticking to your boots and you are trying to train, coach, provide real life experiences, and at the same time be safety conscience due to the number of things that can happen with a student on a mega-ton piece of equipment performing construction tasks, then you start to get the picture for such a low ratio.

Also, I have heard of the 4-to-1 ratio being used in other circles, but I believe it has more to do with being symmetrical (the trainer in the middle with a student at each corner), than it has to do with any real learning advantage.

Not too long ago, when I led some diversity training, the class sizes were kept small, under 10 learners, as the designers wanted to allow room for a lot of interaction to take place. So while one instance might call for small class sizes due to safety and the complexity of the training, another might be kept small to allow for certain activities to take place.

I believe the best approach is to analyze your training requirements, check on classroom facilities, and then choose your class size accordingly.

Personalized System of Instruction (PSI)
If you really want to be more effective, then use a better instructional strategy. The Personalized System of Instruction (PSI) also know as the Keller plan. First described by Fred Keller in "Good Bye Teacher - Journal of Applied Behavior Analysis" (1968). It is composed of small self-paced modularized units of instructions where study guides direct learners through the modules. Unit tests are given on each module where the learners must show mastery by scoring at least a 90%. Student proctors are used to help with individual problems and lectures are given for motivational problems only.

Pascarella and Terenzini's (Page 91 to 93) research findings (again referenced for those who want to review it) on PSI came up with the following. Upon reviewing 7 different studies they concluded that "PSI is effective in fostering improved subject matter mastery over more conventional instructional approach. This is true regardless of whether the synthesis is quantitative or narrative."

They also reviewed two meta-analytical syntheses of PSI and learning. The first was based on 19 studies and had an effect size of 0.42 of a standard deviation. The second one was based on 61 studies and had an effect size of 0.49 of a standard deviation which translates to an achievement advantage of 19 percentile points (in other words, if the conventionally taught groups were achieving at the 50th percentile, the PSI groups were, on the average, at the 69th percentile).

Active Learning
The authors (page 98 with several references cited) also report that student involvement or engagement (active learning) be used since a substantial body of evidence suggests that the greater the learner's involvement in the learning process, then the greater the level of content acquisition. Also note that this involvement can be as simple as note taking, discussions, or answering questions.

Learning Papers with References
Principles of Educational Multimedia User Interface Design

The "Change-up" in Lectures

Training Magazine - October Issue

Every October, Training Magazine produces an Industry Report that contains a wealth of statistical information. The information listed below is just a small sampling of the information available in the printed report. The complete report is available each year in the special October issue of Training Magazine. Cover price is $35 (plus $3 s/h, US funds). To order your copy of the 1997 Industry Report today, e:mail your request to Nancy Swanson at nswanson@lakewoodpub.com, or call 1-800-707-7749 8:00-5:00 CST.

Highlights may be found at Industry Report.

Training & Development - January Issue

Carries the "State of the Industry Report." For a reprint, call ASTD at 1-800-248-0360 and ask for reprint 019821.

Highlights may be found at State of the Industry Report.

Training Magazine - November Issue

The November issues of Training Magazine carries the latest salaries.

Highlights may be found at Salary Survey.

These sites also list HRD salaries:
WageWeb
Compensation in the Human Resources Field
How Does Your Pay Stack Up?

Professional Skills

From a recent survey "Other than job related skills, which of the following are the hardest to find in new candidates?" (OfficeTeam 2884 Sand Hill Road, Menlo Park, CA 94025) - The responses:

	Leadership skills- 30%
	Writing skills- 29%
	Problem Solving skills - 14%
	Interpersonal skills - 11%
	Organizational Skills - 7%
	Oral Communication skills - 5%

CBT vs. Others Sources

Instructor led and text based instruction accounted for 78% of training dollars in 1994. By the year 2000, this will drop to 60% as computer based training will go from 16% to 35%. - International Data Corp. (Training Magazine, September 97, page 14)

Skill Retention

People who learn and master a skill (A) and then immediately learn and master a second skill (B), performed poorly when skill A was performed 5 hours later. People who learned a skill (A), waited five hours, learned a second skill (B), and then waited five hours were able to perform both skill succeffully. - Holcomb and Shadmehr (Training Magazine - November 97, page 14)

The Bureau of Labor Statistics

Some sampling of their statistics:

	Average number of hours of formal training per employee (10.7).
	Average number of formal training activities per employee (2.1).
	Job skills training accounted for 67% of the total training hours and 48% of total training participants. Computer training took up 20% of the total training hours, the largest share of any training type.
	General skills training accounted for 33% of total training hours and 52% of total training participants, with occupational safety training accounting for 11% of total training hours.
	The transportation, communications, and public utilities industries provided the most hours of formal training, followed by finance, insurance, real estate and mining. Retail trade and construction provided the fewest.
	65% of establishments increased the proportion of their employees who received training in the last 3 years, with only 3% indicating a decrease. Nearly 70% increased the amount they spent on training, while only 5% experienced a decrease.
	The most common type of training was classified in the study as 'off-site training', used by 80% of the establishments. 40% had mentoring programs, slightly more reported using individualized career and development plans, and only 24% had formal apprenticeship programs.
	91% reported in-house staff providing at least some of the training.

Employee Retention

Non-monetary Issues
February 2, 1999 IRVINE, Calif.--(BUSINESS WIRE). BridgeGate Report polled 660 working Americans, seeking to uncover the factors most likely to convince employees to continue working for their current employers. Some of their findings:

	43.2% - A raise was named by less than half of the sample
	50.5% - Non-monetary issues were cited collectively by an even larger number
	23.1% - Improved benefits
	14.1% - More flexible work schedule
	8.6% - Stock options
	4.7% - Better training

The BridgeGate survey of 660 Americans was conducted December 28-30, 1998, by Market Facts, Inc. TeleNation. The margin of error is +/- 3 percentage points.

Committed Employees
Also, the Hay Group reported that committed employees (workers that plan on staying with their curent employee more than 5 years) found satisfaction in:

Type of work (89%)

Respectful treatment (69%)

Coaching and feedback(64%)

Learn new skills (61%)

Top Five Reasons
While Aon Consulting of Chicago (Training & Development, Nov 98, p. 10) reported that the top five reasons (salary was not even in the top 10) for employee commitment are:

Employer's recognition of personal and family time

The organization's vision and direction

Personal growth

The ability to challenge the way things are done

Everyday work satisfaction

Work Environment
On June 9 PRNewswire, via NewsEdge Corporation, reported a study by Robert Half International (www.rhii.com). They found that employees want a good fit between their jobs and personal lives. One-third (33 percent) of those polled place a positive work environment at the top of the list of considerations for keeping employees satisfied. This was up from 9 percent in 1993, surpassing both "praise" and "compensation."

Executives were asked, "Which one of the following factors do you think is most important in keeping an employee satisfied?" Their responses:

	1999	1993
Work environment	33%	9%
Praise and Recognition	28%	47%
Compensation and Benefits	28%	7%
Job Security	6%	9%
Promotions	4%	26%
No Answer or don't know	1%	2%

"For a growing number of workers, corporate culture is the key determinant in their choice to stay with an organization long term," said Max Messmer, chairman and CEO of Robert Half International Inc. and author of the just-released "Human Resources Kit For Dummies(R)" (IDG Books Worldwide, 1999). "While compensation will always be a strong motivator, today's professionals are placing greater emphasis on issues ranging from management style and degree of autonomy to intellectual challenge and relaxed dress code policies," he said.

Note: The study included responses from 150 executives with the nation's 1,000 largest companies.

Emergent Worker
On May 20, 1999, PRNewswire via NewsEdge Corporation reported that the 1999 Emerging Workforce Study by Interim Services Inc found that the new breed of employee, the "Emergent worker" makes up the top 22% of the workforce today and does not like to follow rules or organizational charts, but thrives on gaining new experiences (hence training) and even on stress.

The study, in combination with data from the Saratoga Institute, highlights the financial impact that the lack of mentoring, training and growth opportunities could have on an organization in terms of turnover costs. By combining information from both studies, Mentoring, Training and Growth opportunities saves companies with over 1,000 employees up to $40 million. Companies can either invest in providing mentoring, training and growth opportunities now or pay the costs of turnover later.

The Study also dispelled the myth of a slowdown among older workers age 53 and up. It found that maturity in terms of years of experience and age seem to bring about greater satisfaction with one's career. With significant labor shortages today and in the future -- as Baby Boomers age and the smaller Generation X struggles to fill their shoes -- older workers will become increasingly important. The good news: today's census figures tell us people are working longer, retiring later and in better health today than ever before. But you need to train them to keep them up with the ever-increasing rate of technology.

Case studies and additional supporting materials for many of the findings are also available upon request: CONTACT: Tricia Chamberlain, 954-489-6178, or Sue Siebert, 954-938-7661, both of Interim Services. Web site:http://www.interim.com/

Leadership
A study by the Hay Group (Feb. 24, PRNewswire) found there is a clear link between employee satisfaction and the communication skills of an organization's top leadership. It examined over 75 key components of employee satisfaction:

Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization.

Effective communication by leadership in three critical areas was the key to winning organizational trust and confidence:

Helping employees understand the company's overall business strategy.

Helping employees understand how they contribute to achieving key business objectives.

Sharing information with employees on both how the company is doing

How an employee's own division is doing -- relative to strategic business objectives.

The component that is most predictive of overall satisfaction is trust and confidence in the job being done by the company's top leadership team. Leaders must create a clear, compelling business vision and provide the work force with consistent feedback on where the organization stands relative to that vision. This research tells leaders exactly WHAT they need to communicate -- core business strategies, the role of employees and how the business is performing.

The Hay Group is a management consulting firm that specializes in helping its clients achieve strategy through people. For more information about Hay Research for Management, please visit its web site at http://rm.www.haygroup.com or contact Bruce N. Pfau at 201-557-8464 or Bruce_Pfau@haygroup.com.

Length of Stay
Training & Development (Jan 99, page 13) reports that only 3 percent of workers 50 and over change jobs in any given year. Workers between 50 and 60 stay on the job an average of 15 years. And they have less accidents.

Major Trends in Learning & Technology

	92% of large organizations are implementing some form of network training in 1999.
	41% currently have placed at least one course-mainly from external content vendors-online for employees.

COMPUTER RESELLER NEWS -- 03-15-99, p.196

CBT vs. Classroom

The August 1998 edition of HR Magazine (Society for Human Resource Management) listed the following (a study by Strategic Solutions Group Inc., Annapolis, Md.) for setting up technology-based training, including the web-based variety:

	Needs analysis - $5,000 to $10,000
	Training design - $20,000 to $40,000
	Training development - $10,000 and higher per hour of training.

They also created a hypothetical situation to calculate the cost of delivering training to 500 employees through the traditional classroom mode versus computer-based training. It assumes that 40 hours of classroom instruction equates to 24 hours of more-effective computer-based training.

AUTHOR NOTE: You have to watch out for situations like this. They use estimated percentages that CBT is almost twice as effective as classroom training - they are going to have to show me some hard data before I believe that! Now, depending upon the task at hand, CBT can be more effective, but to use it in an outright statement like this is very misleading.

In-Class Instructor-led Training Computer-based Training

Wages of trainees $400,000 $240,000

Opportunity lost(cost of productive days lost to training) 1,000,000 600,000

Travel costs 250,000 0

Trainer wages 47,500 11,400

Trainer travel 20,000 0

Development costs 160,000 600,000

TOTALS $1,877,500 $1,451,400

Coaching & Mentoring

A survey of more than 300 companies nationwide found that companies are focusing on developing the leadership abilities of managers, executives, and employees internally through coaching and mentoring programs:

	59% currently offer coaching or other developmental counseling to their managers and executives. Another 20% plan to offer coaching within the next year.
	25% have set up formal mentoring programs, with another 25% planning to do so within the next 12 months.

With a tight labor market it is more important than ever to retain quality employees.

Reasons for offering coaching or other developmental counseling:

Sharpen leadership skills of high-potential individuals -86%

Correct management behavior problems (communication skills, failure to develop subordinates, indecisiveness, etc.) - 72%

To increase the success of newly promoted managers - 64%

Correct employee relations problems (poor interpersonal skills, disorganization, arrogant behavior) - 59%

Provide management and leadership skills to technically oriented employees - 58%

Coaching and mentoring programs are becoming valuable developmental and retention tools for many organizations.

Reasons for offering mentoring programs:

Retention of employees -73%.

Improve leadership and managerial skills - 71%

Develop new leaders - 66%.

Enhance career development - 62%

Put high-potential individuals on the fast career track -49%

Promote diversity - 48%

Improve technical knowledge - 30%

The survey was conducted by Manchester, a human capital consulting services subsidiary of Modis Professional Services of Jacksonville, FL, a global provider of business services including consulting, outsourcing, training, and strategic staffing services. - March 2, 1999

Corporate Cultures

March 2, 1999 via the NewsEdge Corporation: An international study conducted by the HayGroup for Fortune magazine finds that corporate cultures of the world's most admired companies are alike in many ways, but also differ from those of an average company. David Sissons, Toronto-based Director of Research Services for Hay Canada,says "This study reveals that the dominant values in the world's most admired companies are teamwork, customer focus, innovation and fair treatment of employees. The Hay Group points out that the winners emphasize global reach and vision. They are creating organizations that don't just operate in many countries, but that also develop corporate cultures and workforces reflecting the diversity of local markets.

In average companies, the overriding values are making budget, supporting the decisions of management, and minimizing risks, while the world's most admired companies are not just talking about their core values - they are walking the talk by aligning their policies, practices and expectations around them.

The world's most admired companies were identified through a systematic rating process involving over 7,000 senior executives, industry analysts and outside directors. The top five most admired companies across all industries are: General Electric, Coca-Cola, Microsoft, Disney and Intel.

For further information: David Sissons, tel. (416) 868-1371, ext. 6439/

Business Process Outsourcing (BPO)

BPO is Driving Organizational Change by allowing companies to focus on core business according to a new study of top decision-makers at the nation's largest corporations. Business Process Outsourcing is defined as the long-term contracting of a company's non-core business processes to an outside service provider. The global BPO market in 1998 was valued at $80 billion, with the U.S. market representing approximately half of that. Over the next five years, this market is expected to more than double in size to $200 billion. BPO frees companies to focus on what they do best while providing access to best practices, technology, expertise and human resources in non-core functions.

Interviews with senior executives at over 100 U.S. companies, averaging $4.4 billion in revenues, were conducted over a six-month period. 73% reported their companies outsource one or more business processes to external service providers. The business processes most frequently outsourced in the U.S. are

benefits management (51%)

payroll (49%)

claims administration (38%)

real estate management (34%)

tax compliance (28%)

human resources (26%)

internal auditing (26%)

Of those who outsource, the majority believe that BPO :

allows them to focus on their core competencies (92%)

increasees efficiency without having to invest in people and technology (89%)

helps them become more profitable, leading to increases in shareholder value (78%)

leads to better service levels than internal departments can provide (57%)

This study was conducted by PricewaterhouseCoopers (www.pwcglobal.com) and Yankelovich Partners Inc - April 7, 1999 NEW YORK--(BUSINESS WIRE). For a copy of the Global Top Decision-Makers Study on Business Process Outsourcing: United States executive summary, please contact Joseph Vales at 212-597-3539 or joseph.vales@us.pwcglobal.com.

Corporate Training Sales

Simba Information predicts corporate training market will grow at a compound annual rate Of 8.6% From 1999-2001. The need to train America's workforce in IT skills and soft skills will drive corporate training sales up at a compound annual rate of 8.6% from 1998 to 2001, reaching more than $10 billion in 2001, according to Corporate Training Markets, 1999, a new report by Simba Information Inc., one of the nation's leading research firms in the area of corporate training.

IT training companies (which specialize in computer skills training) are expected to capture an average market share of about 61% of the entire training market throughout 2000. Releases of new and improved software applications from vendors like Microsoft and Oracle will continue to buoy the IT training sector

Soft skills trainers (specializing in leadership and management training) will garner an average market share of 39% for the same period, Simba projects.

Instructor led delivery will remain the most chosen method of conveying training content in both markets, although technology based training (CBT, internet, satellite broadcasts, etc.) is growing at a much more rapid pace, up 37.6% and generating an estimated $2 billion in 1998. It will not surpass stand-up delivery into the year 2001.

Trends such as consolidation, global expansion, strategic alliances, and multiple delivery offerings have created a training market estimated $8.1 billion in 1998. These trends are expected to spill over into the training market in 1999 and 2000. "The corporate training industry is a robust one, driven by factors like fluctuating common corporate practices and the advancement of technology," says Stephanie Fagnani, author of the report and editor of its companion newsletter Lifelong Learning Market Report, also published by Simba.

For more information, contact Tania Brady at (203) 358-4246. Simba Information Inc. ( http://www.simbanet.com), based in Stamford, CT, is a leading provider of news, analysis and market research on the media and information industries. Simba Information Inc. is a unit of PRIMEDIA Information Inc. (Hightstown, NJ). April 14, 1999 - STAMFORD, Conn.-(BUSINESS WIRE).

Training and Lay Offs

The Institute Of Profit Advisors (Chicago) found in a 1999 survey that providing training, rather than laying them off, was a major key in improving profitability. Training Magazine, March 1999, p. 23.

Management Skills

Top 10 skills needed for organizational success:

	Interpersonal
	Listening
	Motivation
	Presentation
	Small group communication
	Advising
	Interviewing
	Conflict Management
	Writing
	Reading

O'Conner Kenny Partners, a communication commpany out of Memphis, surveyed HR Directors in Fortune 500 companies.

Notes
About Page
donclark@nwlink.com

Copyright 1996 by Donald Clark
Created September 21, 1996
Updated April 29, 2001
http://www.nwlink.com/~donclark/hrd/trainsta.html