Training Spend Benchmarks
How much do organisations actually spend on employee training? Industry data from ATD, SHRM, LinkedIn Learning, and McKinsey to calibrate your L&D budget.
$1,280
Average spend per employee per year
ATD State of the Industry Report
40 hrs
Average training hours per employee per year
ATD 2024
94%
Employees who'd stay longer if employer invested in their development
LinkedIn Learning 2023
2×
More likely to leave if no development opportunity
Gallup Workplace Report
$3.5T
Global corporate training market size (2025)
Grand View Research
48%
Of companies plan to increase L&D budgets next year
LinkedIn Learning 2024
Training Spend by Industry
Annual spend per employee, average training hours, and L&D budget as a percentage of payroll. Source: ATD State of the Industry Report 2024.
| Industry | Spend / Employee | vs Avg | Avg Hours / yr | % of Payroll | YoY Trend |
|---|---|---|---|---|---|
| Financial Services | $1,780 | +$500 above | 48 hrs | 2.1% | +8% |
| Healthcare | $1,540 | +$260 above | 52 hrs | 1.9% | +12% |
| Technology | $2,100 | +$820 above | 62 hrs | 3.2% | +15% |
| Manufacturing | $980 | $300 below | 34 hrs | 1.2% | +3% |
| Retail & E-commerce | $680 | $600 below | 28 hrs | 1% | +5% |
| Professional Services | $2,340 | +$1,060 above | 71 hrs | 3.8% | +10% |
| Government / Public Sector | $1,120 | $160 below | 41 hrs | 1.5% | +2% |
| Non-Profit | $540 | $740 below | 22 hrs | 0.8% | +1% |
| Construction & Engineering | $860 | $420 below | 38 hrs | 1.1% | +4% |
| Education | $1,040 | $240 below | 45 hrs | 1.4% | +6% |
| All Industries (ATD Avg) | $1,280 | +$0 above | 40 hrs | 1.7% | +7% |
Research on Training ROI
What the data says about the return on L&D investment.
IBM Institute for Business Value
2023“Organisations that invest heavily in employee learning are 92% more likely to innovate and 56% more productive.”
Gallup
2023“Replacing an employee costs 50–200% of their annual salary when you factor in recruitment, onboarding, and productivity loss.”
ASTD (now ATD)
2022“Companies providing comprehensive training have 218% higher income per employee and a 24% higher profit margin.”
LinkedIn Learning
2024“Learning culture companies have 52% higher productivity rates and are 17% more profitable than their peers.”
SHRM
2023“The average cost to hire an employee is $4,700, rising to $28,000 or more for senior roles when indirect costs are included.”
McKinsey Global Institute
2024“87% of executives say their organisations have significant skill gaps now or expect them within the next few years.”
How to Set Your L&D Budget
Minimum (1% of payroll)
Covers compliance and basic onboarding. Suitable only where regulatory requirements are the primary driver.
Standard (2% of payroll)
ATD benchmark. Allows a mix of online and instructor-led programmes across role types. Enough for meaningful skill development.
High-growth (3–5% of payroll)
Common in tech and professional services. Enables leadership programmes, external coaching, and conference attendance. Correlates with talent retention.