By Michael Holland –
Attempting to create your first real training budget? Already have your training budget but wonder how your budget compares to others? Here are some quick data points and thoughts to help in both cases.
Creating a Budget Using a Percentage of Payroll
To create a budget amount use a percentage of total compensation for the organization as a base and multiple that number by 2% to 4%. Does 4% seem high? Well, interestingly, according to Training Magazine, an industry publication that ranks the top 125 organizations for employee development, the mean training budget of these companies was 4.33% of payroll.
Create a Budget Using Per Learner Expenditures
The graphic below reveals the size of training expenditures by learner. These budgets include all types of training from leadership development to customer service to technology applications. Create your initial budget by multiplying the appropriate per learner expenditure amount by total number of employees.