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Seb Anthony

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Training Budgets

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I work for a new Housing Trust, who are attempting to lay to rest the 'ghosts' of local government thinking.

I am charged with looking at an initial training budget for staff... I remember reading somewhere about expressing the training budget as a %age of the staffing budget.

I've heard of and am aware of the 'business needs' model of identifying training budgets, however it is useful to have a 'core' budget from which training can be sourced.

Any views on the best way of identifying an 'underlying' budget for training and employee development?

[email protected]
Ian Stone

One Response

  1. Changing the old way of thinking of budgets
    There are models you can use to define the spend that you place on training as a percentage cost. If you research companies like McDonalds and what they spend (this is widely available on the internet) you will see that typically companies spend anything from 5%-10% as a a starting point although companies with established training depts can go up as high as 45% – 50% to establish budgets. However, now that HR and training is aligning itself more with the needs of the business (even in housing), you may find it more worthwhile to undertake some analysis based upon what the business needs you to deliver rather than an arbitrary figure that you feel you have to spend (or lose if you don’t spend it, as per local govt thinking). You will do more for the profile of your dept by contributing to the company deliverables rather becoming a spend at the bottom end.

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