Many training budget benchmarks do not reflect the reality of small construction firms. Reports often define “small business” as companies with up to 500 employees, which can make the data less useful for firms with fewer than 100 employees.
At Building PPL, we wanted to look at data that better reflects the needs of smaller construction companies.
A Practical Budget To Consider
A common recommendation is to allocate 1% to 3% of total salary budget to employee training. For smaller firms, Building PPL has found that 2% to 3% is often the most practical and sustainable range.
What the Data Shows
Building PPL reviewed training budget data from 15 construction companies with fewer than 100 employees. The analysis showed that 90% of those companies invest about $3,000 per employee annually in training.
That figure closely aligns with the 2%–3% benchmark, especially in an industry where safety, compliance, and skill development are essential.
What This Means for Small Construction Firms
For companies with fewer than 100 employees, training investment can be evaluated using two useful benchmarks: allocating 2% to 3% of total salary budget to training and targeting roughly $3,000 per employee annually.
These numbers are not one-size-fits-all, but they provide a practical starting point for leaders looking to build a training budget that supports both workforce development and business performance.
Companies evaluating their approach can use these benchmarks to shape a right-sized training strategy that matches their goals, budget, and team needs.
