Trends in Corporate Learning and Development

1. Trends in Corporate Learning and Development Ken Taylor President and Editor in Chief

3. Agenda 6 Key Trends in Corporate Learning What’s Happening in Our Market Questions

4. 6 Key Trends Adapting the training function to today’s complex business environment

5. 6 Key Trends in Corporate Learning Addressing The Soft Skills Gap Blending Experiences vs. Blended Learning Learner Confidence Increases Competence Market Opportunity for Pre-boarding Upskilling the Training Function Training to Prevent Crisis

6. Similar patterns regardless of role or level • Most common gaps noted • Communication • People management • Social intelligence • Change management • Address through multi-modal learning programs Addressing The Soft Skills Gap

7. Highest Skills Gaps Across Role Types Sales/Service Communication 31% Teamwork 28% Problem solving 27% People management 25% Leadership Communication 47% People management 42% Social intelligence 38% Change management 38% Technical Communication 36% People management 30% Social intelligence 30% Innovation 26% Non-Technical Communication 42% People management 33% Social intelligence 32% Problem solving 31%

8. Shift our focus from blended learning to blending experiences for effective learning. • Optimal learning experience for • knowledge and skills • application • Job role drives personalized combination of experiences to ensure success. • Learning and development will have to look beyond existing toolsets to pull this off. Blending Experiences vs. Blended Learning

9. When do learnersgetwhat they want? When it’s an established method When multiple methods are used Over 75% use three or more delivery methods VS. N = 551 Learner Preference Research, Training Industry, Inc. 2018

10. What they wantvs. what they think works Learners believe methods that enable applied practice are most impactful. N = 629 Learner Preference Research, Training Industry, Inc. 2018

11. The biggest driver of effectiveness Whether or not training used at least one preferred modality Learner Preference Research, Training Industry, Inc. 2018

12. Low confidence is a barrier to proficiency. • Assess confidence level to determine competency as part of the evaluation of an employee’s performance and development. • Practice new skills in the context the daily workflow to help build confidence and enhance performance. • Move beyond simply testing the transfer of knowledge and focus on whether the learner has the confidence to use that knowledge. Learner Confidence Increases Competence

13. Four Stages of Competence

14. The training function is under increasing pressure to mitigate company risk. • The Starbucks incident illustrates a Band-Aid approach to a crisis. • L&D needs to be proactive and strategic instead of reactive. • This means we need to take a holistic view of company risk. Training to Prevent Crisis

15. Typology of Organizational Risk

16. Jobs are going unfilled because of the lack of skilled talent. • This would be a “train-to-hire” approach to recruiting in which applicants are placed in a job once they are fully trained. • This can be sourced or done in-house. • Reduces time to proficiency once on the job. Market Opportunity for Pre-boarding

17. L&D professionals underserved from a development perspective. • Transformation is needed inside the training function. • L&D must build investment and time into its budget to upskill the training team. • New emerging skills (data/systems) needed to build better experiences. Upskilling the Training Function

18. Training Manager Competency Model Needs to be sized larger and not cut off the footer

19. 6 Key Trends in Corporate Learning Addressing The Soft Skills Gap Blending Experiences vs. Blended Learning Learner Confidence Increases Competence Market Opportunity for Pre-boarding Upskilling the Training Function Training to Prevent Crisis

20. What Training Industry is Seeing in the Overall Market

21. Market Highlights • Global spending was up 1% in 2018 and we expect 2% in 2019 to $373.7B • Most sourced services include: • Delivery/Facilitation • Strategy • Content Development • Most sourced courseware topic areas include: • Leadership • IT • Soft skills

22. Global Corporate Training Investment Source: Training Industry, Inc. Research Data *2019 estimated totals Font size needs to be bigger

23. 2018 Global External Spending: $97.7 B Source: Training Industry, Inc. Research Data

24. 2018 Global External Training Courses: $77.7 B Other Segments Include ​(examples):​ Administrative Company Specific Culture Employee Engagement Marketing Legal​ Role-specific Training​ (non-professional) HR/OD​ Licensure – non-executive​ Languages Culture/Diversity Innovation/Change Management Source: Training Industry, Inc. Research Data

25. 2018 North American Corporate Training Investment Source: Training Industry, Inc. Research Data *2019 estimated totals

26. North American 2018 External Spending: $40.6 billion Source: Training Industry, Inc. Research Data

27. North American 2018 External Training Courses: $30.3 billion Other Segments Include ​ (but are not limited to):​ Executive development​ Marketing training​ Computer Science​ Legal​ Role Specific Training​ (non-professional) HR/OD​ Licensure (Series 7)​ Languages Culture/Diversity Innovation/Change Management Source: Training Industry, Inc. Research Data

28. Likely Change in Training Budget for FY 2019 Very Bullish on 2019 N = 255

29. Likely Areas of Expenditure for Increased L&D Budgets N = 453

30. Likely Areas of External Provider Engagement N = 303

31. Areas of Focus for Strategic L&D Expenditures N = 303

32. Questions? Data shared in this presentation, including market size efforts, were selected from various recent Training Industry Research projects, including market research, and data collection for the Training Industry Top Training Companies™ (Top 20) lists.

33. Ken TaylorPresident and Editor in ChiefTraining Industry, Inc. Contact Info: ktaylor@trainingindustry.com 919-653-4992