Institute of Management Technology

Hyderabad

Subject:
Learning & Development (L & D)

Instructor:
Dr. B. Pavan Kumar
The Training Budget

 Management wants to know –

How much is this going to cost?

 The Training Budget

 Fixed costs:
 Those costs that remain the same no matter how many
individuals participate in the training.
 Instructor’s salary.
 Marketing/information distribution.
 Variable costs:
 Expenses that will vary depending on the number of
participants in the training program.
 Printed hand-outs.
 Lunch for participants.
 The Training Budget

 Direct costs
 All of the expenses involved in putting together the
training program:
 Course development or purchase.
 Printing.
 Equipment rental.
 Costs of needs assessment.
 Evaluation of training.
 The Training Budget

 Indirect costs:
 Less obvious expenses, not directly related to the
training:
 Overhead.
 Administrative and clerical salaries.
 Employee fringe benefits (25 percent of salary).
 Productivity loss.
Are Employees Paid During Training?
 Employees must be paid for training time
unless all four of the following requirements
are met:
 Attendance is outside of the employee’s
regular working hours.
 Attendance is voluntary.
 The training is not directly related to the
employee’s current job title.
 The employee does not perform any
productive work during attendance at the
training.

(SHRM, 2008)
Training Costs
 Trainer’s salary.
 Trainee’s salary or wage.
 Materials and supplies for training.
 Development costs.
 Consultant’s or contractor’s service fees.
 Travel and living expense for trainer and trainees.
 Transportation.
 Equipment costs: Audiovisual and computer.
 Support costs: Hours spent by clerical staff and
managers
 Postage, misc.
 Lost production (opportunity costs).
Training Budget

Organization: Year:
Department: Submitted by:
Annual training allotment:
1st Quarter Training Budget
Item Description/ Qty. Unit Total (Rs.)
Justification Cost/Rate
1 Courseware development 0
2 Courseware purchase 0
3 Certification 0
4 Train-the-trainer 0
5 Hardware purchase 0
6 Facility rental 0
7 Instructional materials 0
8 Technical equipment 0
9 Consulting fees 0
10 Instructor fees 0
11 Content acquisition 0
12 Travel 0
13 Per diem 0
Grand Total 0

http://office.microsoft.com/en-us/help/HA011228731033.aspx
Training is Expensive

Rs.2109.25 billion

According to an estimate from MHRD, in 2018,

organizations spent Rs. 2109.25 billion on
employee learning.
The Training Budget

Prepare a training budget for your project.