2 Responses

1. How to calculate a training budget
   Hi Neil.

   This is a chicken & egg one…

   To start with is the training budget to cover just external course spend? will it include expences or does the business account for this differently? Are distance or e-learning cources purchased centrally? what about day release/ night school – is that a development issue & dealt with centrally or a local responsability? What about overheads & salaries while on training is that to be budgted or not?

   Ok so you have the answers to above then… its about the TNA. Once manager have done that, they run past you the training plan for their department. You then take the plan, identify the suppliers and the costs – they then budget for it next time round..

   ok in the real world you may have a policy that you aim to spend x% of your turnover or salery bill on training – this is then proportioned per head to each departmenst & then they manage it.

   There are you you can see many ways to do this. There are risks and opportunities with each.

   Have to go now – if you want more on this can ‘fill in more details’ tonight – or I am sure you will have comments from others.

   Mike

2. Devolved training budget and line management
   Neil

   I am not sure I would ask line managers (LMs) to prescribe their own budget.

   My own preference would be to get LMs to collate the learning needs of their staff (perhaps following on from the performance management review). If necessary you can aggregate that up to business unit level in larger organisations. These results could then come through to the the L&D team – ie you.

   This allows you to know what is going on, check for inconsistencies and apportion budgets with fairness according to need. It would also mean that you can see what the total delegated spend might be, along with the central budget for L&D, to ensure you don’t breach any ceiling figure, or get approval from the board, as appropriate, before informing LMs.

   Hope this helps
   Graham