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L&D budget as a percentage of paybill?


Good afternoon,

I am looking for some information on the typical figures that companies use to set their training budget. E.g. what is the percentage of pay bill that companies use to set their training budget? Struggling to find access to that information off CIPD!

If anyone can point me to any site, information, stats or bench marking it would be appreciated.



2 Responses

  1. previous posts on this site usually point out….

    …that a 'budget' that is based in payroll is not aligned to the requirements of the business or to the requirements of staff……consequently there will seldome be any meaningful calculation of ROI and the 'budget' is therefore exposed to being slashed at the first hint of recession.

    Not what you were hoping to hear but a general truism


  2. Unfortunately, I agree with Rus

    We base our Learning & Development budgets on the specific requirements of the department heads, which in turn are based on their strategic objectives for the coming year.

    For example, if our customer care team were to identify "improving customer relationships" as a strategic need and training was identified as a way to support that, we would request budget to cover that specific intervention for the number of people who needed the training.

    We've found that this approach is much easier to defend than a cost per head figure based on payroll.

    The downside is that it requires department heads to have some idea about their objectives and their recruitment / development strategy for the coming year….

    Probably not much more helpful, sorry….


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