How to Ask for a Bigger Training Budget?

Approximate reading time: 1m 15s

How do you get management to approve more funds for training? Follow the tips below.

What should you take into account? The people who make budget decisions are interested in data. They want to know what the benefits for the organization will be and whether the investment will have a return.

What information should you present to them?

• Percentage of new employees over the last year/3 years, cost of hiring a new employee, potential savings.

Hiring new employees is a much more expensive and time-consuming process compared to training current ones. According to statistics, the average cost of losing a current employee is about 20-22% of their salary. Some employees can cost 50, 150, and even 200%. These are significant amounts. How do you deal with the problem? Review the number of employees you have lost over the last year/over the last 3 years. What percentage of the total are they?

Calculate the costs of hiring new employees and see what the total costs are. Present the percentages and costs compared to the potential funds that your training will save.

• Key performance indicators (KPI)/past results.

We hope you track the results of your current training and can demonstrate improvements in employee performance. The best indicator of future success is past results. What should you do? Gather KPIs and review the trends. For example, did sales increase after employees completed sales training? By how much? These numbers will help you prove the effectiveness and value of the training. Present your KPIs as charts/tables so they are easier to understand and remember.

• How much does the competition spend on training?

If your main competitors spend more on training, sharing this fact with management may hint that your company should take the same step.

Summarize the main benefits of staff training

Remind management of the benefits of staff training:

• Employee satisfaction.
• Less turnover among new employees.
• Better performance.
• More lasting knowledge.

 We can help you create training. Contact us at tel.: +359 878 685 304, e-mail: office@nitbg.com.

Source: https://www.allencomm.com/blog/2018/05/how-to-get-a-larger-training-budget-approved/.