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E-learning: The efficient solution for every training budget

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The signs are pointing towards further training - this applies to every company. This is not only due to digitalization and the shortage of skilled workers, but also to a multitude of challenges. Skills must be continuously developed so that individuals and organizations remain competitive. An attractive range of further training is also a decisive factor in employer branding. Companies that invest in the development of their employees position themselves better in the competition for qualified specialists and increase their chances of retaining talent in the long term. It is also important to support employees during the change process. E-learning is ideal for creating a common knowledge base and supporting employees in the long term with different forms of learning.

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E-learning is proving to be the key to making efficient use of training budgets. With modern digital learning formats, you not only make optimum use of the available budget, but also strengthen the individual skills of your employees. In the following, you will learn how to manage training budgets efficiently and which calculation methods have proven their worth.

Definition: Training budget

A training budget is a fixed financial amount that a company makes available for the professional and technical development of employees. This budget typically covers costs for courses, seminars, workshops, conferences, specialist literature and the e-learning platform. A strategically deployed training budget brings benefits for the company and its employees.

Advantages of a training budget

Regular investment in professional development has positive effects for both employers and employees. These benefits complement each other and contribute to sustainable corporate and personnel development.

For employers

  • Increasing competitiveness: Continuous training keeps companies innovative and in tune with the times.
  • Higher employee retention: Investing in employee development promotes loyalty and reduces staff turnover.
  • Attractiveness of the company: A generous training budget makes companies more attractive to qualified specialists.
  • Increased productivity: Better qualified employees work more efficiently and perform better.
  • Succession planning: The targeted promotion of talent makes it easier to fill management positions internally.
  • Planning security: A fixed budget enables better financial planning for personnel development.

For employees

  • Personal development: Access to training opportunities promotes professional growth and career development.
  • Higher labor market value: Current qualifications increase your own market value and employability.
  • Motivation and satisfaction: The opportunity for further development increases employee satisfaction.
  • Self-determination: A personal budget enables employees to organize their training according to their interests and career goals.
  • Skills development: Employees can acquire new skills that are useful both in their current job and for future tasks.
Graphic: Share of digital learning in companies' training budgets. Data from the E-Learning Study 2024.

Methods for calculating a training budget

There are various ways in which companies can calculate their training budget. These are the most common methods:

Percentage of salary costs

Description: A fixed percentage of total personnel costs is reserved for further training.

Typical values: Between 1 and 5 % of costs, depending on the industry.

Advantages:

  • easy to calculate
  • grows automatically with the size of the company
  • Established standard with comparative values from various industries

Fixed training budget per employee

Description: All employees receive a certain amount of money per year for further training.

Typical values: Depending on the company, between 500 and 2,000 euros per person per year.

Advantages:

  • Transparent and fair
  • Easy to communicate and manage
  • gives employees planning security

Position-based or hierarchy-based budgeting

Description: The budget varies depending on the position, area of responsibility or hierarchy level.

Example: Managers receive a higher training budget than specialists.

Advantages:

  • can serve as a career incentive
  • takes into account different training requirements depending on the position

Demand-oriented budgeting

Description: The budget is based on the identified skills gaps and strategic objectives.

Process: Needs analysis → Prioritization → Budget allocation (new every year)

Advantages:

  • Direct link to corporate goals
  • Efficient use of funds through targeted investments

Performance-based budgeting

Description: The training budget is linked to performance or contribution to the company's success.

Example: Top performers receive an additional training budget as an incentive.

Advantages:

  • Motivating for high-performing employees
  • Can be linked to bonus system

Combination of different methods

Description: Many companies combine several approaches.

Example: Basic budget per employee + additional budget according to demand or performance

Advantages:

  • Flexibility combined with planning security
  • Possibility to cover individual and strategic needs

Factors that influence the budget amount

  • Industry and competitive environment
  • Company size and financial situation
  • Growth targets and pressure to innovate
  • Availability of skilled workers on the labor market
  • Complexity of the further training measures required

Please note:

The choice of budgeting method should match the corporate culture and strategic objectives and be reviewed regularly.

This is what a typical training budget includes

A typical training budget comprises various types of costs that cover both direct and indirect expenses for the professional development of employees.

Direct costs

Course fees and participation costs

  • Seminars, workshops and conferences
  • Certification programs and examination fees
  • Online courses and e-learning platforms
  • University and academy programs (Master of Business Administration (MBA), part-time courses)

Learning materials

  • Specialist literature and journals
  • Digital learning resources and software
  • Licenses and subscriptions for the learning platform

Travel expenses

  • Travel costs (train, flight, mileage allowance)
  • Accommodation costs
  • Additional expenses for meals/daily allowance
  • Rental car or local transportation

External teachers

  • Fees for trainers
  • Costs for individual coaching or mentoring programs

Indirect costs

Working hours/downtime

  • Time off for further training measures
  • Loss of productivity during absence
  • Time for preparation and follow-up of training courses

Representation costs

  • temporary workers or overtime from colleagues
  • Redistribution of tasks during absence

Internal resources

  • Working time for personnel development and administration
  • Costs for internal trainer and mentors
  • Use of premises and infrastructure for internal training

Technical infrastructure

  • LMS
  • Hardware and software for virtual learning environments
  • Digital collaboration and communication tools

Knowledge transfer

  • Time to pass on the knowledge gained in the team
  • Documentation and preparation of learning content

Evaluation and sustainability

  • Costs for performance measurement and transfer assurance
  • Follow-up measures to ensure application

When planning budgets, companies often underestimate indirect costs, even though they can make up a significant proportion of the total investment. A realistic inclusion of all cost factors enables a transparent presentation of the actual training costs and helps to correctly assess the return on learning (ROL) of training.

Why e-learning is important for the efficiency of training budgets

For many companies, implementing effective training measures with a limited budget is a challenge. E-learning offers a promising solution, as digital forms of learning allow companies to make the most of their training budget. 

E-Learning...

  • ...is highly scalable.
  • ...is flexible and independent of time and place.
  • ...enables demand-oriented learning.
  • ...simplifies the administration of learning, learners and learning progress.
  • ...reduces the number of face-to-face training sessions, including direct and indirect costs.
  • ...is sustainable because traveling is no longer necessary.

Digital learning formats enable companies to offer tailor-made training programs that are flexible in terms of time and location and easily accessible to most employees - regardless of the size of the training budget

Budget for e-learning = budget with added value

A study by the Bitkom Academy and HRpepper entitled "Training 2024: Is it all just AI?" clearly shows that training is relevant in the short and long term. For example, 86% of respondents stated that they apply new knowledge from further training in their day-to-day work. 64% stated that they use e-learning for this - and would use it again.

Content Collection: Making the most of your training budget

With over 150 high-quality e-learning courses and a transparent pricing model, the Content Collection combines quality with cost-effectiveness. The license package has a scalable price structure, making e-learning costs predictable. Companies pay a fixed amount per employee - without hidden costs or complicated billing. You choose the right package to suit the number of employees in your company and retain full cost control.

Our e-learning flat rate includes:

Fixed price per license - clear calculation and full budget control

Unlimited access - choose from over 150 e-learning courses in several languages

Scalable costs - the more licenses, the lower the price per person

✔ Can also be used without your own platform - ready for immediate use without additional infrastructure

Regular updates - always up-to-date content on relevant topics

Further training at a fixed price with our Content Collection flat rate

With the Flat, training costs remain calculable, regardless of how intensively individual employees use the offer. A simple solution for anchoring knowledge efficiently and economically in companies.

E-Learning Flat