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
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
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
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