L&D budgets cut in half of companies, finds CIPD

-

The volatile economic environment is having a huge impact on learning and development, with funds decreasing in over half (52%) of UK organisations surveyed in the Chartered Institute of Personnel and Development’s (CIPD) 2010 Learning and Development Survey of over 700 professionals. And only one in 10 employers (11%) expect training spend to increase in the year to come, with the majority (65%) declaring that their economic circumstances have declined in the past 12 months, compared to 46% in 2009 when the recession had already begun.

Despite this, learning and training development departments’ headcounts have largely remained the same in the last year, as UK organisations have stepped up to manage costs more efficiently. The main changes over the last year include a move to be more business focused (38%) and a reduction in external suppliers and a move to in-house provision (31%).

With the UK’s private sector now emerging from recession, the skills employers say they need to focus on in order to meet their business objectives in two years’ time are mainly leadership skills (65%), front line people management skills (55%) and business awareness (51%).

Looking more closely at leadership skills, the main gaps identified by employers are performance management and leading and managing change, with the main focus of leadership development activities in the next 12 months being improving the skills of leaders to think in a more strategic and future-focused way (42%) and enabling the achievement of strategic goals (39%).

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

Dr John McGurk, learning and talent adviser, CIPD, says: “Our annual survey demonstrates that learning and development professionals across the country are rising to the challenge of implementing core training to ensure business success and innovating to ensure long term survival. A skilled and motivated workforce will be essential to ensure organisations are well placed to take advantage of the recovery when it comes.

“It’s particularly good to see that learning and development professionals are focusing on leadership and people management skills as key to support business growth during the tough times. Ensuring front-line managers are well trained to deliver on their people management responsibilities can have a direct and valuable impact on the performance of their staff and their organisation’s success.”

For the first time, the survey has also asked specific questions of those working for international organisations, with almost two-thirds (64%) seeing learning and development as a key driver. Once again, leadership skills feature prominently. In order to meet business objectives in two years’ time, international organisations consider that their expatriate staff need to develop management and leadership skills (42%) as a top priority.



Paul Gray is an entrepreneur and digital publisher who creates online publications focused on solving problems, delivering news, and providing platforms for informed comment and debate. He is associated with HRZone and has built businesses in the HR and professional publishing sector. His work emphasizes creating industry-specific content platforms.

Latest news

Curtis Holmes: Payroll is the driver for employee engagement

Payroll has long been treated as a back-office necessity: essential, but not something that shapes culture or drives engagement. This no longer stands.

Labour market yet to show major AI impact on jobs, govt adviser says

A government economic adviser has challenged predictions of widespread AI-driven unemployment, arguing labour market data has yet to show disruption.

Young workers ‘pressured into signing NDAs after workplace injuries’

Workers say injuries are being hidden behind confidentiality agreements while financial pressures leave many afraid to challenge unsafe conditions.

CIPD recognises 30 HR leaders driving change across UK workplaces

The CIPD has unveiled its HR30 list for 2026, recognising senior people leaders whose work has delivered measurable impact across organisations and workforces.
- Advertisement -

Brits dream of being their own boss, but still cling to the monthly pay cheque, survey reveals

Britons say they like the idea of self-employment, but most still value the security and stability of traditional jobs.

AI Coaching Won’t Replace Managers. It Will Expose Coaching Debt.

As AI coaching expands, employers may gain a clearer view of where manager support is falling short.

Must read

Geoffrey Matthews: Ten signs that your engagement survey follow-up risks being a stumble, not a sprint

Geoffrey Matthews will be speaking at the Employee Engagement Summit in...

Charlotte Mepham: Keeping you workforce engaged

If someone asks what are the main problems you...
- Advertisement -

You might also likeRELATED
Recommended to you