1. Budgeting Management & Coordination of Training and Development Developed by: J. Benkowski Presented by: K. Lui

2. BUDGETING – Projecting costs Salary / benefits Equipment Supplies & Materials Telephone Consultants Professional fees Travel Entertainment Training facilities Training Professional development Overhead Service recoveries

3. Planning a budget: Review company objectives Meet w/ departments review needs List specific training needs Prioritize training needs Determine best methods of instruction Cost outside assistance if needed If need to cut – determine areas

4. Cost of training – ala ASTD SOI 2005 $955 -1,555 /employee Average number of hours of formal learning 32 – 36 / employee Allocate 2.34% - 3.2% of payroll for training

5. Budget decision points: What programs will you offer? What is the greatest ROI? Which programs are readily available? Which need to be developed? Who will instruct? Travel needs, facilities needs, equipment?

6. Centralized training: Easier to keep track of Senior management support of training Encourage departments to send people to training

7. Decentralization: Managers feel responsible User departments are held accountable Users are less likely to withdraw people from program

8. Project Service Recoveries How much cost to recover? Competitiveness – can they get it cheaper elsewhere? Relative value Overall price structure