Please indicate the annual external training budget in € at year end.

  • Radia Guira

A training budget refers to the direct and indirect costs and resources used to train employees in an organization. It includes the cost of courses, books, and other learning materials. It also includes indirect costs like wages, compensation, and time spent setting up training.

This question asks the respondent to provide an indication of their company’s annual budget for external training, measured in euros, at the end of the year. It seeks to understand how much of the company’s budget is allocated for external learning and development initiatives.

External training refers to professional development programs, training courses, certification programs, and seminars that are provided by entities outside the company – these could be expert professionals, consulting firms, product vendors, or industry organizations. The year-end period refers to the last day of a company’s financial year, which can vary depending on the company’s accounting practices or legal requirements.

For example, if the company allocated €10,000 for external training programs at the conclusion of the financial year, the respondent would answer this question as follows: (example: 10000)

This data point is insightful for ESG scores as it indicates the company’s investment in employee development and learning, which drives talent growth, and productivity, impacting its social sustainability score. Ultimately, this budget can reflect the company’s commitment to maintain a skilled and knowledgeable workforce.

Understanding the Importance of Training Budgets in ESG Reporting

When considering the Environmental, Social, and Governance (ESG) aspects of an organization, the focus often shifts towards environmental impact and governance structures. However, the ‘Social’ component, which includes employee training and development, is equally vital. An appropriate training budget reflects a company’s commitment to its employees’ growth, aligning with the ESG criteria that value human capital development.

To accurately calculate your ESG score, it is essential to report on various aspects, including the annual external training budget. This figure demonstrates the investment made in enhancing the skills and competencies of your workforce, which is a key performance indicator for the ‘Social’ pillar within ESG metrics. But why is this important? A well-trained workforce indicates a sustainable business that is prepared to adapt to changing market demands and technologies. For insights into how training budgets can impact your organization’s growth, visit Zavvy’s blog on training budgets.

Calculating the Annual External Training Budget

Calculating your company’s annual external training budget is a straightforward process, but it requires meticulous record-keeping and consideration of various costs. The external training budget includes all expenses related to training and developing employees that occur outside the organization. This can encompass workshops, conferences, online courses, and any other educational programs that employees attend to improve their skills and job performance.

To determine this budget, you should sum up all costs associated with registration fees, travel expenses, materials required for the training, and any other relevant expenditures. It’s important not to overlook any external training sessions, as each contributes to the total investment in your employees. For an extensive guide on what constitutes external training and how to document such expenses, the French public service portal provides valuable information at

Strategizing for Effective Training Investment

It’s not enough to simply allocate funds to external training; a strategic approach is required to ensure that the investment is effective and aligns with your company’s ESG objectives. By identifying the skills that are most pertinent to your organization’s growth and sustainability, you can tailor your training programs accordingly. Additionally, tracking the return on investment (ROI) from training initiatives can aid in making informed decisions about future budget allocations.

Understanding the subsidies and incentives available for employee training can further optimize your budget. For example, businesses in the Netherlands can benefit from the STAP budget for training and development, which can provide financial support for continuing education of their workforce. More information about this subsidy can be found at

In conclusion, the annual external training budget is a crucial component of ESG reporting that should not be underestimated. By accurately calculating and strategically investing in employee development, companies can enhance their ESG performance while also contributing to a more sustainable and skilled workforce. Remember, the journey towards sustainability is continuous, and investing in your employees is a step in the right direction.