The ins and outs of professional development budget

If you’re reading this, you have been invited to a 15-minute video call with either Nat or Kristen. Every week, a handful of brave subscribers take us up on the offer. As well as discussing their career goals and challenges (#micro-coaching), we almost always ask about professional development. 

After speaking to hundreds of y’all, we are sad to report that far too many women have no idea whether you have any development budget, let alone the process for requesting it. 

There’s good news though. Depending on your organisation’s financial year-end, you may still have time before your budget evaporates into thin air – again. So before you literally walk away from free money (again), here’s our case for investing it in yourself.

Like any investment, the benefits compound over time

Our last company was an investing platform, so we’ve spent a lot of time talking about the eighth wonder of the world: Compounding returns. Put simply, your investments should grow in value faster over time because your returns also generate returns. 

We use the term ‘career trajectory’ for a reason. Professional development is an investment in your career, and like those infamous COVID graphs, the compounding returns can chart an exponential line. That’s because the capabilities you develop (like strategy, influence and visibility) lead to new opportunities, promotions and pay rises. These, in turn, trigger even more, creating a snowball of success. 

Think we’re being optimistic? We’ve seen the impact – a third of our members make tangible progress in their first 6 months. Yes, all those little steps really do add up.

An unparalleled return on investment

On a $100k salary? You earn roughly fifty bucks an hour.

Let’s say your professional development budget is $500, that’s the equivalent of ten hours – or more than a day of your time. Figuring out how to access it should take one conversation with your manager – 30 minutes for $500? Now that’s a nice hourly rate.

Let’s say you invest that $500 to close a capability gap. If your new expertise leads to a $5,000 payrise, that’s a 10x return on investment. But it doesn’t stop there. Your $5k salary increase adds up to $100,000 in extra income over 20 years. And that’s before you start to count any further boosts.

All because you organised a 30-minute meeting with your manager. That professional development budget doesn’t feel so insignificant now, does it?

So why do so many of us not use it?

Given the case for career development, why do so few of us invest that free money? Well, there are a couple of perceived barriers that we’re more than happy to demolish:

Your budget isn’t as fixed as you think

When your contract states a fixed budget, it’s easy to mistake that figure for fact. It often isn’t.

Organisations usually have a bucket of money that averages out to an individual amount. Every year, some people use more than their allocated amount and others? None at all. The same goes for those of us who have the budget available on a case-by-case basis: there is a pot of money, and a portion of it has been earmarked for you.

If you’re not sure, it’s worth checking. ‘If not you, then who?’ applies here – if you’re not using your money to generate those compounding career returns, who is? 

Money isn’t going to be handed to you

While proactive organisations may seek opportunities to invest in you, often, it’s up to you to ask for what you need. 

Yep, a scary prospect. What if they say ‘no’?

Exactly. What if they do? Nothing. You haven’t embarrassed yourself, you haven’t been rude or demanding. You’ve simply showcased a willingness to learn and improve – very admirable. Ask for feedback so you can learn from the ‘no’, then use your newfound knowledge to make a more successful request next time.

If you’re not sure how to ask, we have a template. Yes, it’s for our Membership Network, but with a couple of small tweaks, you can use it for anything – please do.

Not ready? Use your budget.

Feel intimidated by the calibre of people attending a course or programme? Great, you should be. It means they’re people you can learn from. Put your hand up and embrace the opportunity to invest in yourself.

Done it before? Use your budget

Well established in your career? Wonderful. Still struggling with the ‘basics’? You’re not alone. 

No one hands us a manual with a new job title, which means many of us silently struggle through. There is no downside to revisiting the fundamentals – Powrsuit members stretch right up to the C-Suite because executives recognise the value of a well-timed nudge.

There’s no limit to learning, and remember, if you’ve heard all the theory but haven’t put it into practice, you don’t actually know it yet. 😉

Too busy? Use. Your. Budget.

You’ll never become less busy by continuing to do the same things that make you too busy. 

Professional development will help you escape the busyness trap. You will learn how to better take control of your calendar, protect your time, remove unnecessary meetings and prioritise your rocks. 

Go on, invest in yourself

We’re in a cost-of-living crisis, so it’s time to stop crying over $9 coffees and start accessing the hundreds (if not thousands) of dollars you’re entitled to. Because, no matter how small your budget is, you might be leaving more on the table than you think.