WHATWORKS BRIEF

bersin.com

UK Corporate Learning Factbook 2016:

Benchmarks, Trends, and Analysis of the
UK Training Market
TRAINING COMES HOME AS OUTSOURCING LEVELS DROP
UK organisations reliance on external service providers declined when the recession prompted cuts
in training expenditures. However, despite the rebounding economy, spending on external service
providers has continued to drop; in fact, L&D budget allocations for outsourced services have seen
a 27 percentage point decrease since 2009. This decrease, which is reported in the UK Corporate
Learning Factbook 2016, is a strong indicator that L&D practitioners have become increasingly
confident bringing training initiatives back in-house.
Outsourced services now account for a mere
14 percent of L&D spending, versus 41 percent
in 2009 and 27 percent in 2012 (see Figure 1).
Likewise, small and midsize organisations now
allocate only 12 percent of their total budgets to
external services, and large organisations allocate
only slightly more (16 percent).

What Leaders Should Know

Recognized as one of the training industrys
most trusted sources of data on learning and
development (L&D) budgets, staffing, and
programmes, the UK Corporate Learning Factbook
2016 provides key benchmarks and valuable
guidance to help L&D executives make the right
investment decisions. Data for this study was
collected from 220 UK organisations between
January and August 2015. A few of the key
findings are described in the following sections.

L&D Spending Rebounds

Surveyed UK organisations boosted spending on
L&D initiatives by 11 percent between 2014 and
2015an increase that is 15 percentage points
higher than the levels seen during the throes of the
recession (see Figure 2). Levels of per-employee
spending, which now average 1,068, have also
begun to grow again as the economy rebounds.
These data indicate that the United Kingdoms
economic recovery is manifesting itself through
more confident spending across L&D practices.1
Large organisations showed signs of substantial
recovery, increasing their year-over-year spending
by 10 percent between 2014 and 2015. Midsize
organisations fared slightly better, increasing their
spending by 11 percent. The greatest year-overyear change, however, was seen among small
organisations, which increased their per-employee
spending by 16 percent.2

Figure 1: External Services as a Percentage of Total L&D Spend

External
Services
27%

External
Services
41%

Total L&D Spend 2009

Total L&D Spend 2012

External
Services
14%

Total L&D Spend 2015

Source: Bersin by Deloitte, 2015.

UK Corporate Learning Factbook 2016: Benchmarks, Trends, and Analysis of the UK Training Market, Bersin by Deloitte / Ben Carroll, Raju
Singaraju, and Jennifer Krider, 2016.
2
Ibid.

Copyright 2016 Deloitte Development LLC. All rights reserved.

WHATWORKS BRIEF

bersin.com

Figure 2: Year-over-Year Change in L&D Spending

14%
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%

11%

3%

-4%
20082009

20112012

20142015

Source: Bersin by Deloitte, 2015.

Staffing and Training Hours Continue

to Rise
In addition to increased spending and decreased
outsourcing, another strong indicator that UK
organisations are regaining control of their L&D
initiatives is reported increases in staff-to-employee
ratios, which increased 50 percent between 2012
and 2015. This increased staffing has enabled L&D
groups to take on greater, more diverse training
responsibilities in order to upskill their workforces
to meet market demands. To this end, the number
of training hours per employee rose 12 percenta
far cry from the period between 2009 and 2012,
when organisations slashed employee training hours
by nearly 50 percent in response to the recession
and reduced training budgets.3

Use of Informal Learning Methods Rises,

While Instructor-Led Training Continues Its
Sharp Decline
While instructor-led training (ILT) continues to be
the primary L&D delivery method, accounting for 32
percent of training hours, a glance at the historical
trendline reveals a 45-percentage-point decline
period-over-period since 2009, when it accounted
for 77 percent of training hours. While online
training, unsurprisingly, now accounts for just over
one-quarter of L&D delivery methods, modalities
that foster an environment of informal, continuous
learningespecially experiential / on-the-job
training and collaboration / feedbackare becoming
increasingly prevalent. Looking at the time allocated
to each delivery method, it has become increasingly
apparent in recent years that L&D practitioners are
seeking equilibrium in training, attempting to reach
employees in diverse, complementary ways.

Furthering the Impact of L&D

One of the strongest predictors of high-impact L&D
is strong talent analytics capabilities.4 High-impact
learning organisations tend to understand that the
purpose of measurement is to capture actionable
information in order to improve the efficiency,
effectiveness, and alignment of the entire L&D
function. Comparing this information against industry
norms enables L&D leaders to pinpoint potential
problem areas and make better investments.

Additional L&D Resources

The UK Corporate Learning Factbook 2016 is
only one of many resources available to help you
evaluate and improve your corporate learning
initiatives. Other resources include our Talent
Analytics Framework and our High-Impact Learning
Organization series, including The High-Impact
Learning Organization Maturity Model. These
resources are designed to help organisations build
their L&D capabilities and deliver exceptional
business performance in todays global marketplace.

Our Research
WhatWorks members select from more than 2,000
research-based resources, including more than
350 research bulletins on the latest trends, more
than 200 case studies, and 100 in-depth industry
studies identifying leading practices for learning
and development practitioners.
We look forward to helping you to make sense of
the dynamic and complex learning and development
environment through our WhatWorks membership
and system.
About Bersin by Deloitte

Bersin by Deloitte delivers research-based people strategies designed to help leaders

and their organizations deliver exceptional business performance. Bersin by Deloitte
membership gives FORTUNE 1000 and Forbes Global 2000 HR professionals the
information, action-focused tools, and performance support materials they need to
prioritize, design, and implement leading practice solutions, as well as benchmark
against others, develop their staff, and select and implement systems. A piece of Bersin
by Deloitte research is downloaded on average approximately every minute during
the business day. More than 5,000 organizations worldwide use our research and
consulting to guide their HR, talent, and learning strategies.
This publication contains general information only and Deloitte is not, by means of this
publication, rendering accounting, business, financial, investment, legal, tax, or other
professional advice or services. This publication is not a substitute for such professional
advice or services, nor should it be used as a basis for any decision or action that may
affect your business. Before making any decision or taking any action that may affect
your business, you should consult a qualified professional advisor. Deloitte shall not be
responsible for any loss sustained by any person who relies on this publication.
As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of
Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the
legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available
to attest clients under the rules and regulations of public accounting.

The UK Learning Factbook 2013: Benchmarks, Trends, and Analysis of the UK Training Market, Bersin by Deloitte / Karen OLeonard, 2013.
Measuring Learning: Applying the Talent Analytics Framework to Learning, Bersin by Deloitte / Dani Johnson, Wendy Wang-Audia, and Jennifer
Krider, 2015.
4

Bersin by Deloitte.

180 Grand Avenue, Suite 320 Oakland, CA 94612

510-251-4400 info@bersin.com www.bersin.com

Copyright 2016 Deloitte Development LLC. All rights reserved.