What does unspent development budget mean for the employability of the Dutch workforce?

empowr.
April 19, 2024
3 min

Every year, more than 1.5 billion euros of training budget remains unused, according to research by the employers' association AWVN into the training policies of Dutch employers. This trend points to a significant amount of unused money for education, which sits on the shelf for several years before flowing back into the company's coffers. This means that opportunities for personal development and growth are missed – including in the area of well-being.

According to Eefje Brul of AWVN, the main cause of this phenomenon is a lack of time. Work takes priority, leaving simply no time left for training. Additionally, the research shows that employees find it challenging to choose a specific training or direction. "This is a challenge for employers and managers who are aware of upcoming changes in the company and know what could help employees."

The research reveals that most employers allocate between 500 and 1000 euros for training. About 75 percent of the 8.1 million workers in the Netherlands have annual access to an average training budget of 700 euros. This is similar to previous years.

Brul suggests that employers should pay more attention to informing employees about the available opportunities. "Although they do make it known, somehow it doesn't seem to sink in." Brul suggests using individuals who have completed a course or training as ambassadors to inspire others.

The worrying conclusion of AWVN is that there is no improvement visible in the allocation of training budgets. "This has consequences for the employability of workers, especially if the work is physically demanding." "At some point, there comes a point where that is no longer possible."

In a recent end evaluation of the 2023 collective labor agreement (CLA) year, titled "The long term is missing," the employers' association also concludes that CLA negotiations in the past period were too one-sidedly focused on wages. It is clear that leaving training budgets unused not only affects individual employees but also the broader sustainable employability within organizations. It is of great importance that employers take active steps to use these resources more effectively and thereby stimulate the growth and development of their workforce.

Interested in how we help our partners effectively utilize training budgets? Contact us.