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Trillion dollar training problem

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Page 1: Trillion dollar training problem

© copyright Learning Transfer Solutions Global LLC

Dr. Ed Holton, CEOJones S. Davis Distinguished Professor of Human Resource,

Leadership & Organization Development

Louisiana State University

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www.LTSGlobal.com (888) 877-9531

Page 2: Trillion dollar training problem

© copyright Learning Transfer Solutions Global LLC

United States Training Industry• $134 BILLION spent in the U.S. in 2008

(ASTD)– Direct cost only; no trainee salaries/wages

included

• Only 10 – 30% results in changed job performance

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Page 3: Trillion dollar training problem

© copyright Learning Transfer Solutions Global LLC

But it gets worse…..• Opportunity Cost:

– Research says return of 8:1 is reasonable for good training

• Add salaries and wages of trainees • Thus, the real cost is over

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Page 4: Trillion dollar training problem

© copyright Learning Transfer Solutions Global LLC

Put This Into Perspective

• U.S. government is spending this much to bail out all the banks and insurance companies

• Imagine what the loss is WORLDWIDE?• How can we tell our CEO’s that we waste

70-90% of the money they invest?• Why can’t we do better?

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Page 5: Trillion dollar training problem

© copyright Learning Transfer Solutions Global LLC

Training Transfer

• Definition– The effective and continuing job application of

the knowledge and skills gained in training

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Page 6: Trillion dollar training problem

© copyright Learning Transfer Solutions Global LLC

Questions:

• How much training transfers into job performance in– Your organization?– Your country?

• Why are we content to accept such poor results?

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Page 7: Trillion dollar training problem

© copyright Learning Transfer Solutions Global LLC

The Future of Training

• Training is essential in the global knowledge economy

• But, if we can’t deliver transfer, then training is wasted

• The future of the training profession depends on solving this problem

• It’s time to get serious!!!!!

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