How to Create a Corporate Training Budget [With Template]

Companies of all sizes need to provide training to attract and retain top talent, improve employee performance, and develop leaders within your organization. Yet, it’s often difficult for internal teams to provide training themselves.

Limited time and a lack of resources makes internal training programs ineffective and costly. In comparison, hiring corporate training services is a great way to enhance your team’s soft and hard skills.

But how much should you be spending on corporate training?

The answer depends on your business and your needs. The first step is to create a budget. Here’s what you need to consider when forming a corporate training budget. 

What Goes Into a Corporate Training Budget? 

When creating a budget for corporate training, you have to consider everything your team will need for the training to be successful. This can vary depending on the training your team is receiving, but should include:

• Personnel costs: The cost of corporate training covers the staff of your training team. For some, this means their account manager, but for those who are looking for in-person training sessions, this will also cover the hourly rate for those providing the session. 
• Software: To optimize corporate training, many companies will provide access to learning management systems, employee training software, and e-learning or computer-based training. Be sure to budget for subscriptions for each team member enrolled in training. 
• Courses & Programs: The most obvious component of your corporate training is the courses and programs themselves. This includes in-person and online courses and certifications. 
• Books: Reading about your industry, professional development, and business growth books can help employees continue to grow in their position. Training teams are likely to recommend books and other readings to support their training. 
• Learning materials: Presentation slides, handouts, worksheets, video tutorials, discussion guides, and reference materials can support learning. Including them in your budget ensures that

How to Create a Budget for Corporate Training

1. Identify what type of corporate training to invest in 
2. Consider which employees need corporate training 
3. Determine if this will be a recurring expense 
4. Consider different pricing models
5. Hire a corporate training firm

Identify What Type of Corporate Training to Invest In 

Every organization has different training needs depending on their industry and team experience. The good news is that corporate training companies offer a variety of courses that their clients can choose from. This ensures that clients can receive a bespoke training package that suits their needs.

To communicate what you’re looking for, you will need to understand the types of corporate training offered. It’s also important to note that the type of corporate training can impact how much your corporate training provider will charge you.

Some of the most common types of corporate training are:

• Customer service training
• Cybersecurity awareness training 
• Leadership & Executive coaching 
• Public speaking 
• Project management 
• Sales & Business Development

Discuss what your needs are with potential providers in order to create a customized training package that meets your needs. 

Consider Which Employees Need Corporate Training 

Another big factor when it comes to budgeting for corporate training is the number of employees who will require training. The number of employees enrolled in a program can impact the program duration, subscriptions for training platforms, materials, and more.

Of course it’s important to provide training for all of your employees, but the truth is that not everyone needs the same kind of training.

For instance, entry-level team members will need customer service training, but that’s not necessary for those with years of experience or those who don’t communicate externally. At the same time, executive training is a great way to strengthen your leadership team, but most people in your organization won’t need that kind of training.

To accurately estimate your project cost, be sure to think about individual needs. Make a list of all your employees and what training they would benefit from most. 

Determine if This Will Be a Recurring Expense 

Some types of training only need to be done once while others should be done more frequently. Cybersecurity training, DEI training, or safety training, for example, should be performed regularly to make sure that everybody on the team is up to date on best practices.

If this is a one-off training session, you won’t have to budget as much for it. However, if you need to work with a corporate training partner on a quarterly, bi-annual, or annual basis, you will need to set aside more for training expenses.

Consider Different Pricing Models

Corporate training firms offer different pricing models, which may impact how you budget for corporate training.

You may be able to pay for a specific training set for a given topic such as leadership coaching or specific professional development opportunities.

However, if you need a  more robust training offering, a subscription-based package may be more appropriate. This would provide you with access to a library of training materials in addition to in-person and online training sessions. It would be likely that you would be able to pay a fixed rate for the year.

Alternatively, corporate training firms may offer bundled packages. While they’re not as customizable as other à la carte packages, this would provide access to more options and give your business more flexibility when it comes to cost.  

Hire a Corporate Training Firm

Finding the right corporate training partner for your project depends on what you’re looking for, but cost is often a motivating factor.

Before hiring, it’s important to receive quotes from multiple providers. Discuss your needs with each one to make sure that they can provide the training services you’re looking for without extraneous expenses.

By talking to several providers, you will be able to gather a better understanding of how much your partnership will cost. With a budget in place, you will be able to identify a partner that can provide the most bang for your buck. 

Corporate Training Budget Template

Download Clutch’s corporate training budget template. 

Factors for Corporate Training Costs 

There are many different factors that can influence the cost of hiring a corporate training partner. By understanding what is most likely going to increase the cost of your project can help you budget more effectively and minimize expenses.

Here are some of the most influential components of corporate training costs:

• Type of training 
• Team size 
• Customization 
• Training team experience 
• Location

By considering each of these factors, you will be able to create a comprehensive budget and stick to it. 

Budgeting for Corporate Training Is Essential to Employee Satisfaction and Business Success 

Regardless of your business size or industry, corporate training is an essential investment. For one, professional development opportunities are key to employee satisfaction, but it’s also a good standard business practice. Many training programs ensure your team complies with regulations and follows best practices in your industry.

Budgeting for corporate training ensures that you get the most for your money. By carefully considering your team’s specific needs, you will be able to estimate how much you need to set aside for corporate training.