How much should my company spend on training? Can we estimate an annual training budget by total payroll or revenue?
There is no comprehensive metric that covers every company and every sector. However, here are some key factors that affect a company’s training budget: • Employee turnover (new hire training and investment in long-term employees) • Degree of government regulation, mandated training, or required professional development • Rate of change within the company or sector • Return on investment measured for training initiatives • Support of senior executives • Choices made by the company’s competitors Sometimes a company-wide needs assessment is the best way to estimate an overall training budget. Our training library offers an in-depth case study that shows how a 3,000 employee government agency estimated its training budget through a comprehensive needs analysis.
