Measuring ROI of Training

Introduction to training evaluation

• Training evaluation: meaning and purpose

• Benefits of training

  • Tangible benefits

  • Intangible benefits

• A framework for evaluation

• Evaluation levels and chain of impact

• The ROI model and process

• Common formulas

  • Benefit cost ratio (BCR)

  • Return on investment (ROI) formula

• Barriers to ROI implementation

• Criteria for an effective ROI process

Data collection at various intervals

• During training courses

  • Objectives the foundation of measurement

  • Measuring reaction and satisfaction

  • Measuring learning

• After training courses

  • Questionnaires and surveys

  • Interviews and focus groups

  • On-the-job observations

  • Performance data

  • Action planning and follow-up assignments

Isolating the effects of training

• Potential causes of improved productivity

• Methods and techniques

  • Control groups

  • Trend line analysis and forecasting

  • Stakeholder estimates

Converting training results into monetary values

• Benefits in monetary terms

  • Hard and soft data

  • General steps to convert data

  • Monetary savings in quality and time

• Training program costs

  • Major cost categories

  • Fully loaded approach

• Calculating ROI and reporting findings

  • Workshop: calculations and interpretations

  • Suggested training ROI report outline

Case studies: Implementation in organizations

• Case study 1: evaluating a safety training program

• Case study 2: evaluating a leadership training program

• Case study 3: evaluating a soft skills training program