Issue link: https://www.e-digitaleditions.com/i/227268
LBPO market. This may be due to a shift in the marketplace. Organizations are increasingly converting from instructorled training to e-learning and virtual instructorled training. These formats help expedite learning development and speed-to-competence rates, while decreasing total cost of delivery, including travel expense and time away from the office. E-learning now accounts for more than 50 percent of learning delivery, and is expected to grow an additional 5 percent by 2015. Social learning also continues to increase in importance and is driven by speed-to-competence outcomes. Gen Y employees often prefer to learn socially through the Internet and interfaces that mimic social media networks. This cost effective way of delivering training improves talent management/engagement and learning enablement—about 90 percent of learning takes place outside of the classroom. Although social learning is increasing in importance, only about 15 percent of companies have a formal social learning strategy. LBPO providers are helping clients including with: • Consulting on use of social learning and how to make an engaging user experience; • Technology selection, implementation, and management; and • Provision of virtual instructor-led training. Note: Only a few providers are helping to monitor performance and effectiveness, which is where NelsonHall sees the greatest value today. Of all HRO services, learning was hit hardest hit during the recession. Training was seen as one of the easiest areas to freeze and/or cut spending by those responsible for corporate budgets. Reductions in learning can have negative consequences if investments in talent are ignored for long. For example, ManpowerGroup's 2013 Talent Shortage Survey reports that 35 percent of employers A 2013 OI Partners survey found that half of the companies' surveyed reported higher turnover this year than last, and three-quarters of companies are expecting that even more quality people will leave in the near future. globally, and more than half of Asian employers are having difficulty finding workers with the right skills for open positions. So job-skills training is imperative to fill positions. It's equally important for retaining talent. A 2013 OI Partners survey found that half of the companies' surveyed reported higher turnover this year than last, and threequarters of companies are expecting that even more quality people will leave in the near future. Given a lack of training, it's no wonder that a 2013 Gallup survey found that 70 percent of employees are disengaged. If that's not enough to invest in retaining talent, ADP recently announced the findings of a new report on age and retirement benchmarks in the United States workforce. According to the research, assuming an average retirement age of 61 years, as much as 18 percent of the U.S. workforce could retire within the next five years. Bottom line: Companies have plenty of reasons to protect their talent base by reinvesting in learning and talent development. Gary Bragar is HR outsourcing research director for NelsonHall. NOVEMBER 2013 | www.hrotoday.com [69]