Nearly 41% of training managers expect their training budget to increase by 2025 (source: baromètre formation professionnelle, Edflex), stimulated by rising needs, the arrival of new tools and the realization that our skills are rapidly becoming obsolete.
But before you can even ask for more resources, you have to know how to design a budget that makes sense. To do this, you need to embrace all the issues at stake (corporate strategy, realities in the field, financing mechanisms, etc.) and keep an eye on the big picture, without losing sight of the details.
In this article-guide, we take a close look at 6 key steps to help you build a training budget that's clear, effective and flexible enough to evolve over the course of the year.
1. The regulatory framework for training
Start by identifying your legal obligations:
- Training contribution (1% of gross payroll, 0.55% if you have fewer than 11 employees), paid to your OPCO.
- Compulsory training (electrical clearance, fire prevention, RGPD, etc.).
These unavoidable expenses deserve to be budgeted for as a priority: this ensures that your plan is in line, whatever other decisions you make later on.
2. Linking budget to corporate strategy
Your training plan must become a real arm of your major business and strategic orientations: digitalization, quality certifications, CSR initiatives...
- Reread the General Management's roadmap (or your OKRs).
- Talk to your HR department and managers to define the skills needed to ensure the success of future projects.
With each euro invested, you must be able to meet a specific business need, strengthen collective performance and enhance your appeal as an employer.
3. Identify and prioritize training needs
Before allocating your budget, you need to know exactly what makes sense for your teams and your company.
- Talk to managers about their current projects: new application, process review, regulatory training...
- Send employees a short questionnaire to identify cross-disciplinary desires (languages, management, digital...).
- Take stock: what skills already exist, and where are the gaps?
💡Our free guide for identifying and assessing skills is already available!
Once you have gathered this information, segment your actions:
- Urgent: things that can't wait (safety, compliance, etc.).
- Priority: what serves your key projects.
- Long-term: talent and leadership development.
4. Calculate your training needs and define a budget
Now that you know what to form, let's put a figure on it:
- Look at your figures for last year: overall expenditure, number of hours, cost per participant...
- Make your assumptions: projected headcount, slight rate increase (e.g. +3%), share financed by OPCO/CPF...
- Build your table: course title, duration or number of sessions, unit and total cost, planned financing vs. remaining costs...
- Allow for a contingency margin (around 5-10%) to absorb last-minute requests.
With this, you have a clear vision of the amounts to be mobilized!
Did you know these actions can be taken directly from a TMS to facilitate training budget management!
5. Reduce your out-of-pocket expenses
Why pay full price when you can do otherwise?
Here's how to keep your out-of-pocket expenses to a minimum:
- OPCO: they often cover a large part of the costs, especially for mandatory training courses.
- CPF: encourage your colleagues to use their rights to lighten the budget.
- In-house e-learning: produce a few modules in-house to avoid room and travel costs and gain flexibility.
A few small adjustments and you'll see the difference in your out-of-pocket expenses!
🧠 Tip: you can also reduce the direct and indirect costs of your expenses by optimizing the allocation of your resources when building your schedules. For example, by making the management of your real estate assets more profitable !
6. Continuous adjustment and preparation of the next budget
A training budget isn't set in stone: keep regular checkpoints.
- Every quarter, compare your actual expenses with your forecasts, and reallocate credits if necessary.
- Keep alternative scenarios on hand: postpone, bring forward or cancel a session depending on the urgency of the situation.
- When it's time to take stock, note: initial budget vs. spent, module completion rate, participant satisfaction and ROI (reduction in incidents, time savings).
We've come to the end of this article. You now know the 6 steps we recommend for building and monitoring a training budget!
To find out more about the challenges facing Training Managers, click this way !