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Seb Anthony

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Training Budget


Is there such a formulae? E.g. $250 X no.of employees
Kon Stoilas

3 Responses

  1. In a word – No
    Sorry but it varies from industry to industry, company to company depending on what the business is trying to achieve, the skill sets required etc.

    It’s good news for those of us in the profession though – it means we get paid to carry out TNAs to determine the level of investment necessary and so on.

  2. Source of information
    The United States Bureau of Labor Statistics publishes a wealth of reference information on all aspects of employment, including expenditures on training. See:

    However, I must agree that there is no simple formula. Based on personal experience and conversations with colleagues over the years, it is typical for industry to expend the most on training of management personnel and very little on direct labor. How training dollars are allocated among employees is conspicuously missing from all research that I’ve been privvy to.

  3. Payroll Percentage
    Hi Kon!

    Some years ago the Australian Government passed legislation which dictated that businesses invest 1% of payroll (later increased to 1.5%) in the training and development of employees. The penalty was payment of additional tax up to that threshold.

    More astute organisations of course were already investing beyond that figure and some quoted numbers exceeded 5%.

    Over time rorts became prevalent in certain quarters (e.g. conferences and airfares to overseas events were being categorised as ‘training’) and the legislation was rescinded.

    Speed Safely!


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