Corporate training and development encompasses all employer-initiated or supported measures designed to expand employees' knowledge and skills. It serves as a key lever against the skills shortage while strengthening both the company's competitiveness and employees' career prospects. In Germany, the Qualifizierungschancengesetz (Skills Development Opportunities Act) allows for up to 100% of costs to be covered by government funding.
Definition: What Is Corporate Training?
Corporate training refers to all educational measures initiated or funded by employers that build upon employees' existing vocational qualifications. Its purpose is to systematically develop professional, methodological, and social competencies – aligned with company objectives and the evolving demands of the modern workplace.
Unlike purely private professional development, corporate training initiatives originate with the employer. The employer typically bears the costs and releases employees from their regular duties to participate.
Training vs. Professional Development: What's the Difference?
These terms are often used interchangeably but have distinct meanings:
Training (Fortbildung) aims to deepen or update existing qualifications within one's current profession. It requires prior vocational training and relevant work experience. Example: An accountant completes a course on new tax software.
Professional Development (Weiterbildung) is broader in scope and encompasses acquiring additional qualifications that don't necessarily relate to one's current job. It can also include career changers or individuals without formal vocational qualifications. Example: A production worker learns the fundamentals of project management.
Distinction from General Professional Development
General professional development is the umbrella term for all educational measures following initial vocational training. It can be self-initiated (e.g., evening courses, distance learning) or employer-driven. Corporate training is thus a subset of professional development – with the distinguishing feature that it takes place within the company context and is aligned with organizational goals.
Goals and Benefits
Benefits for Employers
Companies benefit from corporate training on multiple levels:
Securing Skilled Workers: Rather than expensively recruiting new specialists, companies can strategically upskill existing employees. According to the IW Training Survey 2024, 56% of employers actively use training as a countermeasure against the skills shortage.
Productivity Gains: Well-trained employees work more efficiently and independently. Up-to-date knowledge of technologies, processes, and methods leads to better work outcomes.
Employee Retention: The Bitkom Training Study 2025 reveals that 3 out of 4 employees view targeted training as a central criterion when choosing an employer. Those who invest in development reduce turnover and associated costs.
Competitive Advantage: In a dynamic economy, companies must demonstrate innovation capacity. Qualified teams can adapt to new technologies faster and better capitalize on market opportunities.
Benefits for Employees
Employees also gain significant advantages from corporate training:
Career Opportunities: Additional qualifications open doors for advancement – both internally and externally. Individual marketability increases.
Job Security: Those who possess current expertise are less vulnerable to automation or structural changes.
Personal Development: New skills boost confidence and satisfaction. Many employees perceive training as a sign of appreciation from their employer.
Forms and Formats of Corporate Training
On-the-Job Training
With on-the-job training, qualification takes place directly at the workplace. Employees learn through practical instruction, guidance, and learning by doing. According to the IW Training Survey 2024, this format accounts for the largest share of corporate training.
Advantages: Direct practical relevance, minimal downtime, cost-effective.Examples: Onboarding new employees, job rotation, mentoring programs.
Off-the-Job Training
Off-the-job training involves employees leaving their regular workplace. These measures are formally organized and often conclude with certification.
Advantages: Focused learning without work interruptions, exchange with participants from other companies, recognized qualifications.Examples: External seminars, professional conferences, advanced vocational training (e.g., master craftsman certification).
E-Learning and Digital Formats
Digital learning formats have gained significant importance in recent years. They enable flexible, location-independent learning that integrates well into daily work routines.
Formats: Online courses, webinars, learning management systems (LMS), micro-learning units, blended learning (combination of in-person and online).
According to the IW Training Survey 2024, the use of digital learning offerings is now firmly established – interactive web-based learning is particularly popular.
Funding and Financing
Qualifizierungschancengesetz (Skills Development Opportunities Act)
The Qualifizierungschancengesetz (QCG) has been in effect since 2019 and was further improved in 2024. It enables government funding for corporate training – regardless of employees' qualifications, age, or company size.
Requirements:
- The job role can be replaced by technology or is affected by structural change
- Or: Training in a shortage occupation (skills gap)
- Training must comprise at least 121 teaching units
- Provider must be AZAV-certified (German quality standard for training providers)
Funding Levels (since April 2024):
Applications are submitted by the employer to the Federal Employment Agency (Bundesagentur für Arbeit).
Educational Leave (Bildungsurlaub)
In most German federal states, employees are entitled to educational leave – typically five days per year. The employer releases employees from work while continuing to pay their salary. The training must be conducted by a recognized institution.
Who Bears the Costs?
For mandated training: The employer bears the costs in full. Participation counts as working time.
For voluntary training: There is no legal obligation to cover costs. However, many employers voluntarily contribute or cover costs entirely – as a tool for employee retention.
Utilizing funding: With the Qualifizierungschancengesetz, both parties can be relieved financially. Training vouchers, the Aufstiegs-BAföG (advancement grant), and state-specific programs (e.g., education vouchers) also offer support.
Practical Implementation for HR
Needs Assessment and Potential Analysis
Successful corporate training begins with systematic needs assessment. Without clear analysis, measures often remain unspecific and miss their intended impact.
Methods for Needs Assessment:
- Employee discussions and feedback sessions
- Comparison of job requirements and existing competencies (skill gap analysis)
- Analysis of performance data and development potential
- Objective diagnostic tools for strengths-based development
Modern companies increasingly rely on scientifically validated potential analyses to objectively identify development needs. Rather than trusting gut feelings, such tools deliver valid data on individual strengths and areas for development. The digital platform Aivy, for example, enables the scientific assessment of professional interests and competencies – as a foundation for tailored training planning. Practice shows that strengths-based team analyses, such as those used by OMR, reveal hidden potential and enable more targeted development measures.
Measuring Success and ROI
To demonstrate the value of corporate training, HR professionals should define clear metrics:
Quantitative Indicators:
- Participation rates and completion rates
- Productivity development following the measure
- Turnover rate among trained employees
- Cost per qualification
Qualitative Indicators:
- Participant satisfaction
- Transfer of learning to daily work
- Feedback from managers
According to the IW Training Survey 2024, companies invest an average of approximately €1,500 per employee per year in training – business service providers even invest around €1,560.
Frequently Asked Questions About Corporate Training
What is the difference between training and professional development?
Training deepens or updates knowledge in one's current profession and requires prior vocational qualification. Professional development is broader and can also impart new qualifications that are not directly related to the current job. Professional development is also open to career changers.
Does the employer have to pay for training?
For mandated or compulsory training, yes – the employer bears the costs. For voluntary training during personal time, there is no legal obligation. Many companies nevertheless voluntarily cover costs to retain employees. With the Qualifizierungschancengesetz, employers can have up to 100% of costs reimbursed.
What is the Qualifizierungschancengesetz?
The Qualifizierungschancengesetz (QCG) is a German government funding program for corporate training that was introduced in 2019 and expanded in 2024. The Federal Employment Agency covers up to 100% of training costs depending on company size and additionally grants wage subsidies. The goal: preparing employees for digital structural change.
Does training count as working time?
For employer-mandated training, participation counts as working time. For voluntary measures that employees complete in their personal time, this is not the case. Educational leave is a special case: employees are released from regular work but continue to receive their salary.
What training formats are available?
The main formats are on-the-job training (learning at the workplace), off-the-job measures (external seminars, workshops), e-learning (online courses, webinars), blended learning (combination of in-person and online), as well as coaching and mentoring for individual support.
What benefits does corporate training bring to the company?
The benefits are manifold: increased productivity and efficiency, higher employee retention, competitive advantages through current qualifications, an alternative to expensive external recruiting, and greater innovation capacity through new competencies in the team.
How do I identify training needs?
Proven methods include employee discussions, skill gap analyses (comparing requirements with existing competencies), analysis of performance data, and objective potential analyses. Scientifically validated diagnostic tools can help systematically assess networked thinking and other competencies.
How much do companies invest in training?
According to the IW Training Survey 2024, German companies invest an average of approximately €1,500 per employee per year. The training participation rate stands at 5.8% of the workforce according to the Federal Statistical Office (as of 2024).
Conclusion
Corporate training is not a nice-to-have but a strategic success factor. In times of skills shortages, digital transformation, and declining knowledge half-lives, qualified employees secure companies' future viability. The good news: With the Qualifizierungschancengesetz, employers receive financial relief – up to 100% funding is possible.
The key to success lies in systematic needs assessment. Those who objectively identify development potential and select measures accordingly achieve the highest ROI.
Would you like to establish strengths-based talent development in your organization? Learn more about objective potential analysis with Aivy
Sources
- Federal Statistical Office (Destatis). Training Participation Rates 2024. https://www.destatis.de/DE/Themen/Arbeit/Arbeitsmarkt/Qualitaet-Arbeit/Dimension-6/weiterbildungsquoten.html
- Federal Ministry of Labour and Social Affairs (BMAS). Qualifizierungschancengesetz. 2019/2024. https://www.bmas.de/DE/Service/Gesetze-und-Gesetzesvorhaben/qualifizierungschancengesetz.html
- German Economic Institute (IW Köln). IW Training Survey 2024. IW-Trends 2/2024. https://www.iwkoeln.de/fileadmin/user_upload/Studien/IW-Trends/PDF/2024/IW-Trends_2024-02-01-Seyda_et_al.pdf
- Federal Institute for Vocational Education and Training (BIBB). Data Report on the Vocational Education and Training Report 2025. https://www.bibb.de/de/51.php
- Bitkom e.V. Training Study 2025.
- Wikipedia. Berufliche Weiterbildung (Professional Development). https://de.wikipedia.org/wiki/Berufliche_Weiterbildung
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