An Analysis of Training Rates and Expenses Post-Global Financial Crisis
As the world rebounds from the effects of the crisis, consumers and businesses are gaining back some of the ground it lost and slowly the economy picks itself up again.
Following the total economic collapse, many training facilities and consultants dropped their rates to remain afloat during the financial collapse. A decrease in rates were offered to keep the cash flow and service provision rolling with many decreasing their profit margins LMS just to remain open for business.
The rates of training facilities were drastically reduced but more than half a decade down the road since 2008, the rates that the training industry has been providing is nowhere near sustainable. As inflation continues to rise, operation costs, administrative expenses and overhead budgets increase annually, it’s inevitable that the rates of training facilities will revert back to where they were in 2007, pre-financial crisis.
The training and education sector experienced numerous challenges as a result of the global economic crash. Following the significant contraction in 2009, the various sectors from tourism, to sales to education have steadily rebounded with a steady annual increase in production.
As a majority of the Western Hemisphere has shown sustained recovery beginning around 2012, there is a positive outlook with projections marking a continued upward trajectory as time progresses.
During the crisis, there was an increase in outsourcing of training as many businesses and individuals sought to cut costs and opted for virtual training. However, while it was a good temporary solution given the financial hardships, many studies have found that virtual training has advantages but it cannot surpass the quality and interaction of face-to-face trainings.
As the economy rebounds, more business have larger budgets to spend and individuals looking to enhance their resume for employment have more livelihood opportunities, there is an increase in training demand.
This would most likely result in the subsequent rise in the cost of training facilities with more and more people opting to receive more additional lessons and courses as the economy becomes more stable. Such a rise could rejuvenate the training and education sector allowing providers to provide high-quality services and enhanced educational facilities.
Even as the cost of training rises, here is a quick list of why you should still pursue advanced education and training:
- There is nothing more worthy of investment than yourself. What better investment is there than education that will enhance your knowledge, skills and attitudes for better employment marketability;
• Training in your desired field will expose you to the latest trends and knowledge;
• Gain creative and critical thinking skills that will allow you to mold and change the environment in which you operate; and
• Further studies will enable you to meet colleagues expanding your social and professional network.