How do you define a target number of hours in your plan?

Introduction

The training budget is a resource to help employees progress and increase their performance. 

It is a strategic choice to define the company's ambition in training its employees. And it is good practice to transform an ambition into a goal helping to set a direction and align teams. 

Why transform a goal into a target number of training hours? 

• An approach focused on employees (i.e. training employees, not spending money) 
• Compare actual results with the initial goal and, depending on the difference, define an action plan for improvement
  • e.g. goal not achieved but training budget fully spent? > not enough requests from employees? training management to be optimized?

Proposal for defining a target number of training hours to be completed

• 1. Set a target of % of employees trained per year in line with your company's training management policy
  2. Set your company's training investment as a % of an employee's total working time
  • A full-time employee works an average of 1,645 hours a year
  • Good practice = between 1% and 5%
    • 1% of total working time therefore represents ~ 16h or ~2.3 training days /year
    • 1.5% of total working time therefore represents ~ 25h or ~3.5 training days /year
    • 2% of total working time therefore represents ~ 33h or ~4.7 training days /year
    • 5% of total working time therefore represents ~ 82h or ~11.8 training days /year
  3. Calculate the number of hours worked per year for all your employees (taking into account your collective agreement and contract types)
•  
• Target hours of training = Number of hours worked per year for all your employees x target % of employees trained x company investment in training in %
•  

The average number of hours of training per employee (in France) is 28 hours in France

source: http://obsmetiers.rcp-pro.fr/fileadmin/observatoire_metiers/documents/etudes/EF16-1.pdf

Check the consistency of the target

Once the training budget and the target number of training hours to be achieved have been entered, our approach is based on a consistency check between these two objectives. 

Poplee Training offers to perform this consistency check by analyzing the average hourly cost based on this simple formula:

Average hourly cost = Training budget/Target hours

The average hourly cost is an indicator of consistency, not a projection of actual cost. It enables us to identify an apparent inconsistency between ambition and resources when setting budget targets, and to adjust accordingly. 

• Hourly costs too high? > The goal seems low considering the resources. You could increase your target number of training hours
• Hourly costs too low? > The goal seems too high considering the resources. Increase your training budget or reduce your target number of training hours

The hourly cost of training is highly variable (and depends on the training budget costs), but in France the average is between €30/hr and €80/hr.

Identify the average hourly cost for your industry/sector 

Approach A

Based on your history, if the data is consolidated or easily exploitable (remember to check that the cost categories included in your previous plan will be the same as for the next one) and by applying a coefficient linked to inflation.

Approach B

1. Find out the reimbursement limit for training costs from your OPCO for your sector of activity/professional branch on the OPCO website or via your contact person
2. Apply a coefficient to include the additional costs you pay in your training budget (examples of additional costs: transport, accommodation, room hire, etc.)
   • Good practice: +15% to factor in additional costs
3. Apply a margin of uncertainty
   • Good practice: +20