Training & Development Expense as a Percentage of Total HR Expense

Benchmarking Report

Training & Development Expense as a Percentage of Total HR Expense

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Training & Development Expense as a Percentage of Total HR Expense. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.


What is Training & Development Expense as a Percentage of Total HR Expense?

The total cost of employee training and development (labor, third-party vendor expenses, technology, other overhead costs) divided by total Human Resources (HR) Department expense over the same period of time, as a percentage.

Why should Training & Development Expense as a Percentage of Total HR Expense be measured?

Training & Development Expense as a Percentage of Total Human Resources (HR) Expense measures the cost of developing, implementing and managing employee training programs relative to total HR spending over the same period of time. As with most cost-related metrics, a relatively low value is preferred for this metric, however any cost savings in this area must be weighed against the quality of the company's talent development programs. Poorly developed (or non-existent) training programs can impact the bottom line in other ways - high turnover rates, low customer service levels, poor employee productivity and work quality can, in certain cases, may be tied to talent development practices. Furthermore, companies that are experiencing high growth (i.e., adding many new employees, opening new positions, etc.) can expect to spend considerably more on training and development than others.


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Frequently Asked Questions

Q: How do you collect and validate your data?

A: From real-world consulting engagements with Fortune 500 leaders. We’ve spent 25 years conducting original research and anonymizing data from our engagements with top companies around the world. Every single data point we collect is scrutinized by our analysts to conform to established baselines and our rigorous in-house validation process. We won’t serve it up to you unless it meets our tough standards for utility and value.

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