To understand the typical price points offered by learning and development (L&D) or training companies, as well as the typical budget large organizations allot for such training for each employee/region/phase of the business.
Learning Transformation — Large Organization Budget/Spend
- Though a bit dated, a 2014 Deloitte data sheet offers examples of three types of companies and their learning transformation spending: $180 million for a global pharmaceutical company, €300 million for a global manufacturing conglomerate, and $15 million for a North American confectionery.
- The LinkedIn profile of Joseph Ritter, the Director of Global L&D at Merck, states that he manages a $3 million department budget, but it also mentions a $21 million budget for learning and development strategies that he managed in an earlier L&D role with the company.
- According to 2016 data, large organizations (10,000+ employees) were spending $13 million on L&D, while mid-size companies (1,000-9,999 employees) were spending $3.7 million and small companies (under 1,000 employees) averaged $290,000.
- On average, companies were spending $1,273 per employee in 2017, with larger companies spending less on each employee, while that figure increased to $1,296 in 2018.
Learning and Development Market
Summary of Initial Findings
In our initial research, we were able to provide data on the size of the global L&D market and some of its key players, as well as some general information about the annual L&D spend of various company sizes, overall and per employee. We were not able to find data on price points for companies offering L&D services, as these companies appear to keep this information private. Therefore, we believe a more fruitful approach to the research will be to focus on company spending as a way of evaluating potential pricing. Please select one or more of the options provided in the proposed scoping section below.
Proposed next steps:
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