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L&D Investment & Events

The Rounding Error — Why Corporate Training and Event Budgets Shouldn’t Compete

Presenter speaking to professionals around a conference table at a corporate learning or team event.

L&D Investment & Events

The Rounding Error — Why Corporate Training and Event Budgets Shouldn’t Compete

7 minutes

2026. aug. 17.

Learning & Development

Team Building

Presenter speaking to professionals around a conference table at a corporate learning or team event.

L&D Investment & Events

The Rounding Error — Why Corporate Training and Event Budgets Shouldn’t Compete

7 minutes

2026. aug. 17.

Learning & Development

Team Building

Presenter speaking to professionals around a conference table at a corporate learning or team event.

L&D Investment & Events

The Rounding Error — Why Corporate Training and Event Budgets Shouldn’t Compete

7 minutes

2026. aug. 17.

Learning & Development

Team Building

Author: Peter Kalmar, co-founder and CEO of [eureka]


Key takeaway: Learning and development looks like a rounding error only when it is viewed as a separate budget line. The bigger opportunity is to connect it with the investment organizations already make in conferences, offsites and team events, so that time together also creates measurable change at work.


“A rounding error.”

That is what a very good professional contact of mine said. I will name neither them nor their employer, but they sit close enough to the fire (you might even say they are burning in it...) to see up close what kind of budgets corporate training departments are fighting for. Among the spending intended to retain and engage employees, this is the scale of funding that training and development projects and systems have to compete for: a rounding error.

At first, the statement seemed like an exaggeration. Based on the latest data, less so.

According to ATD’s 2026 State of the Industry report, formal learning time per employee increased from 13.7 to 16.7 hours in 2025. Meanwhile, direct training expenditure per employee fell from $1,254 to $846.

Roughly one-fifth more training hours on one-third less money.

But that is a success story! After all, we are using resources more efficiently, technology is making access cheaper, and more employees are receiving training! Nothing to see here.

That is indeed true, but only if we look at the whole thing from the standpoint of raw numbers and the wallet. (In fact, I am also going to show where the spending figures distort the picture.)

The real question, however, is whether development is as effective as it used to be. Because if it is not, then we have not become more efficient. We have simply bought more for less.

In-person learning is not disappearing

You would think that training is becoming dramatically more effective as technology advances. At first glance, I almost bought that myself. Walking around Learning Technologies in London in 2026, the world’s largest learning technology expo, I saw AI appear in some form at almost every stand. I thought I had the answer: the future of corporate training was primarily a matter of technology. Individual learning paths, e-learning, AI coaches and personalized training content would sweep away everything that had previously taken place in person.

The demand data, however, paint a more nuanced picture. In Cegos’s 2026 international survey, 55% of training still takes place in person. Sixty-four percent of HR leaders prefer learning on the job, while 50% favor development formats built around collaborative problem-solving. Group learning is not disappearing.

In the same Cegos survey, the impact on operational performance became the most important criterion for measuring training for the first time. Fifty-five percent of HR respondents selected it, ahead of learning outcomes and participant satisfaction.

This is the truly important shift that companies purchasing training and training providers themselves have been waiting for.


It is no longer enough for learning and development to prove that the training took place and that participants liked it. It should show whether, three months later, people are actually doing something differently.

The effects are already visible in the function’s position within organizations. According to this year’s ATD survey of 340 organizations, only 55% of learning and development functions were represented in senior leadership, compared with 75% the previous year. In other words, if learning and development (L&D) cannot demonstrate a consistent business impact, it will not have a seat at the table where budget decisions are made.

Brave new world, learning and development is finally taking responsibility for its own professional work! Nothing to see here either.

Except that a competing service has quietly crept in and removed the hurdles from the track. True, only in its own lane and only out of its own way: far greater sums are allocated from another cost center to the same people and the same time spent together.

One room, two cost centers

Let us quickly look at another question.

How much does an organization spend to put the same people in a room? Not necessarily for training, I mean. We might have something else in mind: a conference, a team-building event or an offsite.

  • According to Training Magazine’s 2025 US Training Industry Report, companies spent an average of $874 per learner over the course of the year. This budget includes the costs of training programs, course materials, technology solutions and educational services.

  • In GoGather’s 2025 benchmark, compiled from US conferences it managed itself, an average three-day event cost $2,731 per attendee.

A single three-day conference costs roughly three times as much as a full year of training. Per participant. But why is that interesting? Why am I mixing apples and oranges, training and events?

Because in practice, training and event budgets partly cover the same costs: venues, travel, accommodation, facilitation and professional content.

According to Training Magazine’s 2025 US Training Industry Report, of the $102.8 billion in total training expenditure, $22.1 billion, more than one-fifth of total spending, went on travel, facilities, equipment and other related expenses. A significant share of the training budget therefore consists of items that would appear in exactly the same way in an event budget.

And the reverse is also true. The budget for a leadership offsite or internal conference may likewise include professional content, a speaker, a workshop or facilitation, but these are not necessarily recorded as training.

So we are not talking about two clearly distinct products. The same venue, accommodation, travel or facilitated program may be recorded as a training expense in one organization and an event expense in another. Often, even within the same organization, its classification depends on which department commissioned it and which cost center paid for it.

Companies often try to make sense of the same activity across two separate budget lines: “bringing people together” and developing them.

Collaboration instead of competition

It is therefore worth placing the two figures side by side.

  • The first: how much did the organization spend on training and development last year?

  • The second: how much did it spend on bringing employees together at internal events, offsites and team-building events, including travel, accommodation and venue costs?

If the second figure is much larger, it does not follow that we are spending too much on events. I am not suggesting that we start fighting over budget lines, take money away from events and give it to training.


Instead, it is worth considering that one of the organization’s greatest development opportunities may already be funded. We simply do not regard it as training.

We have already paid for the venue, the travel and people’s time. The question is whether we also planned an observable change in the workplace to go with it. This could mean, for example, that three months later, participants give feedback differently, follow a new decision-making routine or collaborate in a way they did not before.

Among our clients, we increasingly see the two areas being planned with shared goals and KPIs. One such shared KPI could be the percentage of participating leaders who, three months later, regularly use a new feedback or decision-making routine introduced at the event. They are not taking money away from the event budget, instead they are using development considerations to get more out of it.

Learning and development is a rounding error only as long as we view it as a separate budget line. If it increases the value of all the time people spend together across the organization, it is no longer competing with the event budget; the two help improve each other’s return.

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Your chosen slot will automatically appear in your calendar.

…or send a quick message.

Leave your name, email and a few words about your inquiry. We’re all ears.

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Got questions? Drop us a line!

Phone

Quick question? Give us a shout!

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Copyright © 2026 EUREKA GAMES Ltd. – All rights reserved