Five Impelling Trends in Training

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Below, you’ll find an overview (in no particular order) of five impelling trends in the industry.

 

  1. The market doesn’t grow

    Based on my long experience in the industry, I expected double-digit growth following the Great Recession. Investment in corporate training is cyclical by nature. It’s very much Last In, First Out. When the recession hits, cutbacks in training are made almost immediately. And when the economy improves, it’s one of the last sectors to feel the effect of the same. It was always thus.

    In 2010 we were pretty much at the bottom of the economic cycle. The economy started to improve afterwards but by 2014, total turnover in the sector had only increased by a mere 6%. But hey, since 2014 the economy has been firing on all cylinders, so surely it has grown massively since? No such luck, between 2014 and the end of 2017 the sector did not grow at all! How come?

  2. Digital transformation

    Classroom-based training keeps decreasing in importance. In 2010, half of all training took place in a traditional classroom-based setting. By 2017, it had decreased by 20%. Over the same time period, e-learning and blended learning had increased by 29%. The trend is obvious.

    An increasing number of clients are asking us for online solutions. The reasons are typically financial (it’s much cheaper), it’s faster to implement and scale up and millennials expect it. Traditional training institutes usually can’t deliver state-of-the-art learning solutions and suffer as a consequence.

     

  3. Internationalisation

    In my humble opinion, those advocating a ‘local-only’ approach are fighting a losing battle. Thousands of students are taking part in Erasmus exchange programmes, schools might have children of dozens of different nationalities and many organisations couldn’t function without e.g. web developers odigital marketers from around the world.

    We find that for instance, our clients in the financial sector are looking for international solutions. In view of the above, isn’t it odd that consistently more than 80% of the training institutes only have a local presence and provide learning only in their own language?

  4. Shake-Out

    A huge shake-out has taken place since the Great Recession. Since 2010, 28% of training institutes have left the market. These were primarily smaller institutes with fewer than 10 employees.

    The number of starters in the industry has gone down sharply as well. Training institutes founded within the last five years are down 67%! That can’t be good for innovation.

    Whereas independent contractors collected more than 30% of money spent on training in 2010, this percentage came down to 11% in 2017. Explanations might for instance be that buyers do not want the hassle of dealing with many different individuals, or that independent contractors are not able to provide the type of scaled-up services clients require.

  5. Certification

    Certification is becoming more important. Between 2010 and 2017 the demand for certified professional learning increased by 36%. At the same time, the demand for formal third-level education programmes decreased by 44%. The latter is noticeable because the non-private training institutes saw no such decrease.

    The increase in the demand for certified professional learning is certainly reflected in our portfolio. Recent graduates and even those already in the workplace for many years require up-skilling in order to cope with digital transformation. And employers paying for the education appreciate the certification process as well because it provides participants with great intrinsic motivation to finish the course.

     

     

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    Would you like to ‘talk’ to me about the above five trends in the training industry? Or anything else I can help you with? Then please do reach out to me….

     

     

     




     

    About the author
    Based in Odesa, Ukraine, Anastasiia Shtankova is a trilingual (English, Russian, Ukrainian) graduate of the Sukhomlinsky Mykolayiv National University. For as long as she can remember, Nastya has had a passion for writing. As the content manager for Finance4Learning, she manages to combine business with the pleasure of writing. She is responsible for generating, curating and marketing content relevant to the company’s target audiences.

     

    About Finance4Learning
    Finance4Learning is a Benelux-based provider of student finance helping individuals realise ambitions and educators drive sales. Finance4Learning typically finances students following upskilling or reskilling courses in e.g. Business Analytics, CyberSecurity, Data Science, Digital Marketing, Growth Hacking, Leadership, UX/UI Design and Web Development. Courses are often provided in a bootcamp format. Finance4Learning is backed by two very reputable organisations - Banco Santander (no. 4 in the world) and the European Investment Fund - and provides access to a €50 million learning & development fund on an exclusive basis.