How to Reinvigorate Your L&D Budget

Learning and development is crucial to recruiting and retaining top talent to your organization. But as many L&D teams know, there are various challenges that can make it difficult to create thriving cultures of learning at their companies.

In a survey of L&D professionals for findcourses.com’s L&D Report: 2018, participants reported that their department’s biggest challenge was a limited budget.

What is the biggest challenge your department faces

As you can see in the graph below, 31% of companies surveyed reported that their budget is less than $200 for each employee. While a handful (13%) of companies can afford to spend $1,000 or more on each employee in terms of training, it’s not the reality for most companies.

Annual training budget per employee

Regardless of industry or company size, however, there are ways to increase your L&D budget.

According to Jack Phillips, Ph.D. and chairman of the ROI Institute, you might consider involving your CFO, who can show to top management that L&D is an investment that will convert into returns. Your CFO can also help present this information in a way that they’ll find credible.

“[The] decision to invest in L&D is made when one of the executives sees learning as an investment rather than a cost because you’ve just shown a ROI in the same way that a Chief Financial Officer was going to show them, “ he says.

But qualitative proof of ROI isn’t always enough. It can also be powerful to include in your presentation personal anecdotes from departments or employees on how they’ve been affected by L&D.

For more ideas on keeping and increasing your training budget, read ”How to Calculate Meaningful ROI for Workplace Learning” in the full report.