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Training Budgets – best / mid / worse £ per head

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I'm trying to negiate a better 'deal' for my employees training budget.

My organisation is committed to learnign and development commits quite a chunk of money... however we're also fiercly competitive in our business sector.

I of course understand the need to start by identifying what you need and then negotiating the money to achieve... which I do for 'extra' projects.

I'm interested in how / whether organisations identify a 'core' training budget. Any answers please?
Ian Stone

3 Responses

  1. Zero Training Budget
    Hi

    Working where I do at the moment, we have a sales training programme, leadership training programme, technical training, talent management, NVQ Scheme all done with a zero training budget

    Look at what you can do within your means first and then you have more clout when asking for extra funding

    Hope this helps

    Rich
    http://www.supremacytraining.com

  2. Training spend
    Ian
    There is a great range. The lowest I have come across is equal to 0.69% of the salaries budget. This was a large processing organisation with a very stable workforce (and a poor reputation for training). They have since been through quite a transformation and I would estimate they are now nearer the average of about 2.8 – 3.0%. The highest I have come across is equal to 7.2% of salaries. This is a specialist medical organisation with a high proportion of scientists and with only a small internal training capability.
    So, everything is very context specific but I hope that at least gives you a small feel for the range.
    Best of luck
    Graham

  3. WIIFU
    Hi Ian,

    I headed up the training arm of a fiercly competitive finance company (SME size) some years back. Training budget was about 1.5% of total salary and that was it. I quickly learned that if I wanted more then you had to show it could do one of two things:

    1) Save money
    2) Make more money

    or put another way:

    1) Reduce excessive expenditure.
    2) Increase earnings potential.

    Once I understood that the Board were really asking “Whats In It For Us” I simply changed my approach to submitting a business case with a well reasoned out ROI (including timescales on the return)

    The best case I submitted got my team an extra £45k as a one off spend on improved IT training infrastructure.

    How?

    I made sure I spelled out the cost saving of improved response rates for data input and teh improved turnaround times on sales case completion. Points 1 and 2!

    Hope this helps.

    Sam