Training Budget
Created by Human Resources Department
For the upper management to be approved for allocation of appropriate funds for employee development over the course of the year.
Through Thorough planning for training expenses and linking them to strategic objectives
avert cost-cutting measures that could reduce your training budget if executives perceive it as overhead or superfluous which ensures that your employees get the skills and knowledge they need to perform effectively on the job.
Indirect costs
Direct costs
To
develop
implement
analyze
evaluate
design
maintain courses and materials
Why is it important?
Alignment
Monitoring
Benefits
Forecasting
Effectively managing training budgets and resources ensures that personnel have the adequate skills and competencies required to complete job tasks.
Ensures employees maintain and adhere credentials to local, state and federal regulations
To ensure that workforce
has the knowledge
has the skills
has the abilities
To execute organization's strategic plan
Technology changes, new services and products, product-support initiatives and new market entries within the plan highlight competency requirements.
focuses human resources’ attention on activities that drive plan achievement
compares the knowledge, skills and abilities demanded by the plan with what is in place
establishes learning priorities to forecast training needs based on the capabilities gap
Gather costs associated with training programs
Allows sponsors and stakeholders to prioritize efforts and distribute funding accordingly
List training activities
List development and delivery costs
Number of people affected
Potential business impact
Allows sponsors to optimize training expenses by
Evaluating the options
Comparing development costs
Purchasing off-the-shelf courses
Consider different methods of providing instruction
Allows employees to evaluate what worked and what did not
Allows employees to consider what areas of training where costs can or need to be reduced to meet management's cost expectations and where government grants the company qualifies and can apply for.
Identifying funds for training ensures that employees get the programs they need to accomplish the company’s strategic goals
By identifying the costs associated with relevant training at the beginning of the year, you ensure these programmes can proceed throughout the coming months
Rather than waiting to expose performance gaps, certifying individuals to start off in the right manner is more effective and efficient.
monitor expenses associated with training activities and ensure you’re getting the most of your money.
By monitoring instructor costs, training material printing and other expenses, trends can be spotted and actions can be implemented to reduce unnecessary spending.