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Seb Anthony

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Training Budgets – best / mid / worse £ per head


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

  1. Zero Training Budget

    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


  2. Training spend
    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

  3. 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.


    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.



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