5 min readTomas Rekola

Updated on

Training budgets and where they go to die

Most learning spend is a conference in spring and a licence nobody uses.

Training budgets and where they go to die

Two patterns dominate learning spend. Everything gets booked in the last six weeks of the financial year, and the people who use the budget are the ones who were already going to develop themselves.

Allocate to teams, not individuals

Individual allowances reward the confident. Team level budgets, owned by the manager and reviewed quarterly, force a conversation about what the team actually needs. They also let you spend three allowances on one person who needs a serious qualification.

Buy capability, not content

Course completions are the easiest thing to measure and the least connected to anything. Before approving, ask what the person will do differently and who will see the difference. A course with no application built into the following quarter is entertainment with a certificate.

Spend most of it on work, not courses

The old rule that most learning happens on the job is broadly right, and yet nearly all the budget goes to formal training. Stretch assignments, rotations, shadowing, external mentoring, conference speaking rather than attending, time to write. These cost management attention instead of money, which is precisely why they get skipped.

Make managers the bottleneck you fix

The most common reason a development plan fails is that the manager could not spare the person. If that is systematic, the constraint is capacity, not budget, and no amount of learning platform licensing will move it.

Kill the platform if nobody uses it

Check actual logins. Enterprise learning libraries frequently sit under ten percent monthly use. That money buys a lot of targeted, specific training for the people who will actually apply it.

Measure one honest outcome: internal fill rate for roles a level up. If your development spending is working, more of your open roles get filled from inside. If it is not, the number stays flat regardless of how many courses were completed.

Sources

  1. 01Skills outlookOECD
  2. 02Research on talent, learning and HR technologyJosh Bersin Company
  3. 03Future of jobs reportWorld Economic Forum
  4. 04Research and benchmarkingSHRM
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