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What is the U.S. market size, in U.S. dollars, for leadership development?
Hello! Thanks for your question about the U.S. market size for leadership development. The short version is that, according to a Deloitte study, US companies spent $31 billion on leadership development programs in 2015 and the spending increased by 10 percent to $34.1 billion in 2016. Below you will find a deep dive of my findings.
LEADERSHIP DEVELOPMENT
Leadership development includes training provided to individuals in the areas of communications, ability to motivate others and management. These skills are usually taught to employees who are in a position of leadership in their companies, like executives and managers.
Forbes reported on a recent study by Deloitte which found that US companies spent $31 billion on leadership development programs in 2015. In 2016, the spending on leadership development programs grew by 10 percent.
A large portion of these programs is dedicated to middle and senior management and is called business coaching. According to a report by the IBIS World, the revenue of the business coaching market is $11 billion with a growth rate of 2.6 percent from 2011 to 2016.
A 2016 survey by Harvard Business Review found that 90 percent of US businesses have a leadership development program. These leadership development programs are in the form of e-learning courseware, business school programs, coaching by consultants and L&D experts. US businesses plan to increase their spending on e-learning courseware by 50 percent, business school programs by 24 percent, consultants by 18 percent and L&D experts by 29 percent.
Another survey by LinkedIn found that companies spend 52 percent of their Learning and Development (L&D) budget on leadership and management programs. The main skills taught in these programs are coaching (57 percent), leadership communication (51 percent), teams and collaboration (42 percent) and employee engagement (40 percent).
Even after investing in leadership development programs, almost 56 percent of company executives still believe that their management is not prepared to meet the leadership challenges of the current business environment.
CALCULATION
2016 Leadership Development market size
= 2015 Leadership Development market size * (100 + Growth rate) percent
= $31 billion * (100 + 10) percent
= $31 billion * 110 percent
= $34.1 billion
SUMMARY
* According to a Deloitte study, US companies spent $31 billion on leadership development programs in 2015 and the spending increased by 10 percent to $34.1 billion in 2016.
* According to a report by the IBIS World, the revenue of the business coaching market is $11 billion with a growth rate of 2.6 percent from 2011 to 2016.
* For leadership development programs, US businesses plan to increase their spending on e-learning courseware by 50 percent, business school programs by 24 percent, consultants by 18 percent and L&D experts by 29 percent.
CONCLUSION
To wrap it up, according to a Deloitte study, US companies spent $31 billion on leadership development programs in 2015 and the spending increased by 10 percent to $34.1 billion in 2016.
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