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.
(Training & Development Expense / Total Human Resources Expense) * 100