Training Budgets - Learnativity.com

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How much of my budget should I devote to training?

Specific question ``I work in an IT department and am currently trying to put together a Training and Development budget for our next fiscal year. I wanted to know what is the industry norm when figuring this budget, is there a certain percentage of employees salary that companies use or something like that?"

Marcia's answer: Depending on the organization's purpose, revenues, etc., you can hear everything from .1% to 25%! Though many IT organizations require lots of training, their hardware/software costs can really skew how big the training budget is as a percentage! But to get you thinking about all the angles, here are some resources. While they are somewhat dated, they still hold pretty true.

ASTD published a good benchmark study which can be found at: www.astd.org/virtual_community/research/bench/benchmarking_fo rum_training_statistics_1996.htm

On 17 Sep 1996, Therese Malm wrote to [email protected] asking ``How many dollars does Motorola allocate to training each year? Does anyone know the figure? Brian Crawford replied, ``I don't have dollar figures, but according to the Business-Higher Education Forum Report on Higher Education and Work Readiness, Motorola dedicates 3% of payroll costs to training. This compares to 5.9% for Arthur Andersen, 2% for Chase Manhatten, 0.6% for McDonald's, and 0.2% for Xerox. Hope this helps!

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