How do you define the budget for your plan?

Introduction

The training budget is what the company estimates it will spend in the course of the year on employee development. This is the estimated costs on professional training (internal or external).

Approach 1: "Top-down"

With this approach, the budget is defined before the collection of individual employee requirements:

  • Based on training costs over the previous period, and making forecasts (organic growth, inflation, etc.) for the following period
  • Based on a percentage of payroll (on average between 1.5% and 2%)
  • Based on a target number of training hours to be completed by the end of the plan x an average hourly training cost (Help page How to define a target number of hours?)

Approach 2: "Bottom-up"

With this approach, the budget is defined on the basis of a projected skills development plan. This is how to build your business plan:

0) Definition of the cost types to be included by the training budget (i.e. teaching costs, additional costs? Expense reports of the participants? etc..) 

1) Definition of strategic directions identification of collective and priority actions as well as the scope of employees concerned

2) Taking account of changes in the legal context identification of regulatory training courses and the scope of employees concerned

3) Collection of individual employee requirements prioritized by their manager identification of training (sessions) to be planned 

4) Plan simulation by adding sessions covering points 1), 2) and 3)

5) Allow for a safety margin so that requests can be processed on as they arrive once the plan has been launched

 

Simulating a plan with Poplee Training

Step 1: In your plan, add the sessions needed to cover:

1) planned collective and priority actions

2) regulation training + mandatory company training courses

3) employee requests arbitrated by you (you can use Request administration)

When you add these sessions, please specify the number of places required (*) and the estimated costs, so that your estimated expenses can be calculated correctly.

(*) If the session has a fixed cost for a specific number of places, remember to add as many sessions as you need to cover the estimated number of places 

Step 2: From the "Budget monitoring" tab of your plan, place your concern on the "Equity" indicator. You will have direct access to the budget you need to finance your business plan:

Step 3: Then go to the "Budget target" tab of your plan and enter this amount in the "Budget target" field: 

 

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