Employee Training Costs: Planning Your Training Budget

Posted on 03/25/2022 by Niko Venev

What Are the Costs Associated With Employee Training, and How Can I Create a Good Budget?

The total cost for employee training can be influenced by several factors, including what kind of training is purchased, how the education is delivered, what your learning goals are, and whether you need the course to end in certification. Additional factors, like instructor wages, supplies, travel costs, administrative expenses, and taxes can increase the total price tag. Creating a good budget can be done in two ways: Either figure out how much you can spend on training and divide it by the number of workers to determine a per-person amount, or multiply your total salary budget by between 1% and 3% to figure out how much you should allocate toward training costs.

How Much Does Employee Training Cost?

The cost to train employees can depend on a number of variables, including how much you can afford to spend, the type of training that you want your employees to get, and the student group size. For example, courses that cover basic topics can be cheaper to enroll in than those that are designed to teach advanced subjects; similarly, courses that teach soft skills may be less expensive than those devoted to developing highly technical skills. Live and instructor-led courses may carry a higher cost than those that are automated and self-paced. Generally speaking, small businesses tend to spend less than $2,000 per employee for training, but this can vary widely.

What Are Employee Training Costs?

Some of the costs that factor into the total cost of employee training include:

• Payments to instructors
• Supply costs
• Travel expenses
• Costs associated with the delivery of educational materials
• Administrative costs
• Taxes

These associated expenses will have to be considered when adding up overall employee training costs. After creating your budget, divide it by the number of employees that you want to train to find out if you have allocated enough money to your budget to cover all of your training expenses.

You should also be aware that there are other expenses in addition to the actual training that you may need to consider when calculating employee training costs. For instance, training that combines courses with a certification test can significantly increase the total amount of money that you'll pay per employee. Other factors, such as whether you want to avail yourself of comprehensive subject overviews or just focus on specific topics, can influence the cost of courses. And whether you opt for customized classes, desire tech support, or need supplemental materials may also increase final totals.

Employee Training Budget Considerations

Without thoughtful planning and consideration, your program training budget can quickly balloon. While some business owners may desire to keep initial employee training costs down, they must also take care to stay within an agreed-upon budget while training takes place. One way to ensure that you stay within your employee training budget is to opt for the most cost-effective options you can find. Take advantage of group discount rates, choose remote or online software training courses to cut down on travel or facility rental costs, and assess your employees' skill levels to ensure that you're not wasting money teaching them things they already know.

It can also be important to remember that any money that you spend on training your employees is also an investment in your business's productivity as well as your staff's sense of well-being, which can bolster retention rates. Simply put, adding a little more money to your program training budget to ensure that your employees can take convenient, effective training classes can keep them on staff longer and spare you the extra expense of hiring and training replacements. At Certstaffix Training, we offer numerous basic and advanced courses with these principles in mind to ensure that business owners get the best value for their money and employees enjoy the learning process. Sign up for one of our instructor-led training courses today!