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UK organisations waste almost £10bn a year on poor training

By Martin Kornacki (03-02-2010)
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Learning and Development News - UK organisations waste almost £10bn a year on poor training

UK organisations are wasting almost £10bn on ineffective training each year, according to research.

The striking figure is the result of a study by KnowledgePool, a managed learning organisation, which found a quarter of all training fails to yield a significant performance improvement.

Researchers quizzed more than 10,000 learners and found that although 69 per cent use what they learn, and experience significant performance improvement as a result, 16 per cent do not use what they learn and do not experience performance improvement.

This figure combined with nine percent of learners that researchers found use what they learn but again without performance improvement means that KnowledgePool believes a quarter of all training is ineffective.

Kevin Lovell, learning strategy director at KnowledgePool, said: "Figures from the Learning and Skills Council show that UK organisations spend around £38bn on training annually, so that means they could be wasting £9.5bn of training investment each year."

The study found there was a positive correlation between the transfer of learning to the workplace, line manager support and performance improvement.

“Sadly, too many line managers assume that when the training finishes, that's the end of the process," Lovell said.

"Organisations should encourage line managers both to work closely with L&D teams, to ensure training is properly targeted, and to help learners apply what they learn."

Lovell also recommends that organisations capture and analyse post-training data.

"If you don't gather data on the impact of the training back in the workplace, you won't know what's working or not working," he said.
 
"The data can help you to spot trends in particular courses, or specific areas of your business, and target areas of concern. By taking action, British companies can enhance the performance of their learners and gain 25 percent more value from their learning spend.”

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