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The L&D Forum

I am currently researching what different budgeting processes that companies follow when planning their L&D budgets for external training.

If I could ask for your feedback please?

What is your industry?

What is your overall and your per person annual external training budget and how is this set?

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Replies

  • Thank you both, valuable insights.

    I guess it will depend on the internal training provision that is available to the business. Those with a strong presence will look to utlise this first and then bring in experts, those who may not have provision at all, are in a position to need external training for a wider range of solutions.

    I'm looking forward to finding out what others think too.

    Kind regards

    Kate

  • Hi Kate,

    I'm in the oil and gas industry.

    We currently have a budget per head that is agreed at board level. Prior to the year start appraisals, all department Managers are informed what the current training allowance is and they can then discuss with the apraisee any learning and development opportunities.  A significant proportion of personnel don't ask for external training. This allows the budget to be utilised towards another persons costs which may be more than the agreed amount. All training has to be justified if its not on an agreed job role matrix. 

    I will create the training budget in October of the previous year e.g. I will create the budget this October for 2019. I will ask all department heads to identify any significant L&D rquirements for the following year and break the costs down in to the budget. If approved this may mean the removal of the per head budget allowance for an individual or team for the following year.

    The last 3 years have been fairly tough for the industry and has meant consecutive 10-15% reductions in the per head allowance.

    However having the per head budget does encourage Managers to still look at learning and development opportunities in a downward cycle which otherwise they are less inclined too.

    Best regards,

    Nathan

  • Hi Kate

    In the organisations I've worked in there hasn't been a particular external training budget per head. There's been a development budget overall but I haven't seen this represented per person.

    I think the reason for this is most 'training has tended to be carried out internally with occasional external training as and when required.

    Personally I like this approach. Budget for external training should be used wisely and when there is a good business case rather than an entitlement per head. 

    I know this doesn't answer your questions as such. I'll be interested to see what others say. Perhaps there are other organisation's that do have a more definitive approach to this.

    Ady

     

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