Putting together a training investment budget involves a great deal of work. It’s an aggressive method that demands detailed insights and actionable data points. You must track key performance indicators (KPIs), watch trends, and predict business requirements. But L&D budgeting is not something you do once at the beginning of the year.

Priorities shift, and trends keep changing, so you’ll need to be able to change with them. Wise training investment implies checking back often to ensure you get the best outcome from your money. And the middle of a year is an excellent time to look at your expenses and determine if you need to make any changes as you plan for a long-term training investment.

It’s a big job, but you needn’t start from the ground up to make a new training investment budget. It would be best if you recognized where to put your attention and how to locate areas to improve.

This blog entry will discuss how the global epidemic changed training investment budgets and preferences. We’ll also talk about how and why you should assist senior management in seeing how important it is to put money into employee training and development. Lastly, we’ll discuss the current L&D trends and share tips on setting your spending priorities.

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The current state of L&D

training investment

The budget for training investment has always been very tight, and the outbreak worsened things. After decades of budgets that stayed the same or grew by small amounts, many businesses had to cut spending in 2020 and 2021.

Training Investment
Source: Brandon Hall Group: State of Learning Practices 2021.

At the close of 2019, just 13% of businesses said their training investment budgets would go down. In 2021, 40% of people said their budgets had been cut because of the disease outbreak. Simultaneously, companies started to rely heavily on their learning and development (L&D) departments for quickly upskilling and reskilling the newly remote workforce and getting them future-ready for work.


The budget for training investment can be significant and hard to understand. It isn’t easy to make sense of what is invested where and when. And while a substantial percentage of the training investment budget is handled strategically through managed sourcing and spending procedures, over 20% of the funding is often not handled well. Most of the time, headcount takes up most of the finances.


People often say that budget problem are among the main issues with any learning project. It is the first challenge for customizing scaled learning, the third challenge for creating strategic compliance training, and the second challenge for assessing learning correctly.

Critical questions

  • Do we know where all the training investment budget money goes?
  • Have we set aside enough money for technology for the complex learning solutions environment of today?
  • Are we spending money wisely on the right people and the right things?

PlayAblo’s POV

Do not overspend on the top management

A business’s success has always been vital to building a solid leadership funnel. To build this leadership funnel, businesses spend a massive proportion of the training investment budget on leadership training, which is just next to the development of technical skills — regarding how much of the funding it takes up.

Since leaders make up such a small proportion of the industry, it’s not unusual that businesses overspend on each individual every year to develop them. Almost 66% of firms spend over $1,000 per year on developing each senior member.

Align your training investment budget with learner requirements

Using the 70:20:10 model, most of what employees learn emerges from doing, making mistakes, and other forms of experiential education. Even though only 10 percent arrives from systematic education systems, that’s where businesses have invested the most money in the past. Things have changed over the years, and companies have gotten better at spreading their learning budgets across various types of learning.

Create a budget that takes the future into account

The pandemic has turned the workplace into a turbulent, uncertain place with a combination of on-site and remote employees. This fact is central to the future of work. Even as you try and resolve the immediate issues this environment poses, remember that these remedies need to be more long-term and tactical, not just quick fixes. The software that appears to be getting you through in the next couple of months might not be proper for the upcoming years.

Also, the learning function must include a new set of skills, which usually means hiring new people, which can be costly.
The L&D department has never faced more challenges in the business world. There are now a lot of new tools, apps, and portals for learning that are meant to improve the learning process. Simultaneously, organizations are looking to L&D to assist them in getting through digitization and ensure their employees have the skills and understanding they need to do well.

Training investment during the pandemic


As per a recent survey by The HRExecutive, 57% of HR leaders state that their training investment budgets have increased since the pandemic started. And 67% confirmed they would increase their L&D funding levels for 2022. Developing employees has become a top priority.

How did businesses spend their extra money throughout this time of change? Below are two of their most essential training investments.

Virtual and digital learning platforms

Even though L&D spending went down initially because companies had to stop doing conventional in-person instruction, the market for online solutions went up. Companies started spending money on digital platforms to develop skills for workers who were far away.

The pandemic made the digitization of training happen faster. As soon as the smoke cleared after the first change to working remotely, HR practitioners started considering integrating training with this new working framework.

At the close of 2020, 79% of L&D professionals said they intended to allocate more funds to eLearning in the future, while 73% confirmed that they planned on spending less on classic instructor-led training. Funding was set aside for elearning solutions, such as self-paced training materials and cloud-based channels.

Immediate skill sets and knowledge requirements

After the first move to working remotely, many companies chose to keep work-from-home and blended work models. Employees needed to be trained right away so that they could do well in such novel work environments.

For instance, businesses are now investing in cloud techniques and have to teach their teams about their usage. Or, they give more soft skills so that information can be transmitted better even when workers are far away.

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Why is training investment essential?

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During the outbreak, several businesses expanded their training investment budgets. However, 52% of HR professionals say they still run into trouble when trying to get budget authorization. Even though there is more support for learning and development, numerous organizations even hesitate to finance it.

54% of the polled HR professionals said that the issue is that the leadership perceives L&D as an expense instead of a valuable investment.

If your company doesn’t want to pay for employee development, here are some reasons it’s in your long-term interest to do so.

Keeping people on the job

Over three-quarters of the employees surveyed confirmed they are more inclined to stay in the organization if it gives them opportunities to learn new things all the time. Employees who get training say they are more interested in and happy with their professions. And less attrition means more money for you.

Getting more money

Companies that help their workers grow have a 24% greater profit margin than businesses that don’t.

Getting the best people

80% of the polled leaders concurred that providing training enabled them to hire the best people. In today’s competitive job market, employees see training as an advantage.

Establishing a powerful employee training program will make you stand out among other employers and assist you in building a solid company image with people who might work for you in the future.

Give the people in charge the facts to help them see how learning is an asset. You can make your position stronger if you have a realistic plan for how you’ll utilize the training investment budget.

How to use your training investment budget in 2022 and beyond?

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Taking full advantage of your L&D budget involves planning how you will spend your money. Look at the latest trends and patterns in L&D to help you decide how to spend your money this year.

Four areas where you should make training investments

Upskilling and reskilling

Many businesses are currently trying to make up for their employees’ lack of skills. As per the research above, 50% of HR professionals state that their working populace has a skills gap. Again, more than 50% of the polled companies concurred that they would train their current workers to fill these gap areas.

Part of a company’s training investment budget is used to train employees and make up for skills gaps.

As a remedy, almost 60% of leaders stated that they would give the training to improve skills in the upcoming year. 55% said they would help with reskilling. One-third of the surveyed companies already had initiatives to help employees learn new skills or improve their existing skills.

Digital, blended, and on-demand learning

Many companies are spending more on eLearning and less on conventional courses taught by educators. Companies are seeking to address the requirements of their employees, no matter where they work. This is because there are more distant and blended employees.

This implies that digital, self-paced training will have to replace a lot, if not all, regular classroom learning. Firms are spending on cloud-based LMS solutions to help employees who work on-site and learn from home.

People learn better when they can go at their pace and do so where and when they want to. It also helps people learn better by making their already hectic schedules less confined to time. Employees can pay more attention to it when the information is broken into chunks that are easy to read and understand.

Training on diversification, fairness, and including everyone

With a more multicultural workplace, organizations realize how important it is to ensure everyone feels safe and welcome at work. Studies show that an organization with many different kinds of people makes more money. It also makes you more creative, which helps you solve problems better.

Today, 40% of businesses provide DE&I training. And 25% of staff members say it’s best for them if their company offers it. By helping your employees understand what it means to be inclusive, you can use the strength of diversification. It will ensure that your workplace is a secure haven where everyone’s opinion matters.

Ad: PlayAblo’s Enterprise-Grade Micro-Learning platform is built for millennial learners. Micro-Learning, along with assessments and gamification features, ensures learning outcome measurement and sustained engagement.
Find out more and request a custom demo!

Learning for each person

Training is based on each learner’s positive aspects and situational factors so that they can process and recall things better. And 93% of firms agree that personalized training makes the person and the company more productive.

More than 80% of companies claim to focus on personalizing learning by using new educational processes. This shows how much importance they give to it.

You can use this information to your advantage by utilizing your training investment budget to buy systems that let you customize things. This could mean spending money on a program that instantaneously uses data from the recruiting process to allocate the correct onboarding training classes.

This could mean using a platform that combines artificial intelligence (AI) to look at performance and determine each person’s learning needs. Or, you could use a system with pre-made coursework so that individuals can choose what they want to learn next predicated on their professional goals and career aspirations.


No matter what trend lines you’ve backed this year or what curriculum rectifications you’re seeking now, it’s imperative that individuals are at the center of your attempts. Your primary purpose is to help your staff members do well in their jobs and advance their careers.

When you put employee development first, you ensure the success of your organization. Successful and happy workers will help you reach your most crucial business objectives, from keeping customers to making more money.

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