What are Training Expenses?
This metric keeps track of your training expenses.
How to calculate Training Expenses?
($) training expense 1 + ($) training expense 2 + ... = ($) Training Expenses
You can also measure how much of your training budget has been spent, using the following formula:
($) total training expenses / ($) total training budget = (%) Training Budget Spent
Or to establish the average spend per employee, use the following formula:
($) total training expenses / (#) eligible employees = Average Training Spend
Companies that want to retain talent generally invest in the development of individuals on their team. Some businesses allocate a fixed allowance per employee, while others have a more ad-hoc approach to training. Whatever your approach, understanding your training expenses will give you insight into the uptake of any allocated budget, highlight whether it’s being used too quickly and needs revision and help with financial planning.
Tracking training expenses is a useful data point to have, but make sure you also track how satisfied your employees are as a result of the training and the impact of that training on employee performance.