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ROI on Training Program
#1
Dear Members,

There are many training programs which keeps happening in organization but management always look for return on investment for such training programs.

Request members to help in identifying ways to find out ROI of a training program.
 
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#2
Hi

As per my knowledge, the ROI on training programs is calculated based on the increase in the efficiency of an employee (after trainning) which has effected the increase in the productivity there by increase in the sales and then the profit margins. However, this has to be done very religiously to arrive at a quantifiable metric.

A simple comparision of the productivity & profilt margins before and after the training program can help in understanding the ROI.

Thanks
Anand.
 
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#3
Do agree Anand,

Increase in productivity is one the major assessment factor any training program especially skill based training programs. Thanks for your inputs.

Govind Singh Negi
HR Professional- Sr Management
Follow at twitter: @govindsinghneg3 https://twitter.com/govindsinghneg3
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#4
Hi,

I believe ROI calculation for training is the most challenging task.
Possibly because training is an investment and management expects justification to the cash flow, ROI calculation is inevitable.

Just want to highlight the basics before we get into ROI calculation:
Clear Objective:
Well defined objective helps in perfect identification of Trainer as well as Participants resulting in maximum learning.
Batch Utilization:
If optimum numbers in terms of batch size is met then there is a reduced per head cost.
Training Feedback:
Good training feedback is the best indicator to justify ROI.

Methods to Calculate ROI:
Dr. Jack Phillips approach is the best method to calculate ROI as it is a refined version of well accepted Kirkpatrik Model, and has 5th Level as ROI.

Please read through reference material attached for more understanding:

Note: Many will look for a ready made questionnaire while designing the effectiveness form, but the best way is to tailor according to your organization and industry.

Regards,
Varun Patil
Human Resource


Attached Files
.pdf   the-kirkpatrick-phillips-evaluation-model-en.pdf (Size: 83.14 KB / Downloads: 113)
 
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#5
Thanks for the contribution of each one of you. ROI on Training program has always been a contentious issue for all HR professionals.This is especially true when it comes to measuring ROI on Soft Skills training. By imparting the Soft Skills training, even if there is a perceptible change in the job behaviour of an employees, it is always a matter of concern as to how it should be linked to the business performance and more importantly how can it be quantified. The challenge before HR professionals is to prove that imparting of soft skills training has indeed resulted in improved business performance. I would welcome thoughts/ inputs/ guidence of HR professionals on this. Regards, Umesh
 
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