Great Presentation Slides on Measuring ROI of Training

Who's going to support a training program that can't prove itself? Companies demand bottom line results from all branches of their operations, including HRD. These powerpoint slides show you the methods and steps of measuring training effectiveness to mark that bottom line.

You can download this (free) excellent presentation at http://www.explorehr.org/category/HR...nt_Slides.html

Regards,

Thank you Eric. I find it very enlightening

Yep, hope you can apply those valuable methods to measure your training program effectiveness.

informative ppt's

When measuring the impacts of training, it is important to track, collect, compile, analyze, and report six different types of training data collected over different time periods. These types of data are indicators, reaction, learning, application, business impact, and return-on-investment.

FIVE levels of training evaluation :


Level 1: REACTION. At this level, participants reactions to and satisfaction with the training program are measured. Some recommended data to capture on Level 1 instruments are:
- relevance of training to job
- recommendation of training to others
- importance of information received
- intention to use skills/knowledge acquired
Those four items have predictive validity for projecting actual applications and should be compared from one program to another.


Level 2 : LEARNING. Learning can be measured informally with self-assessments, team assessments, or facilitator assessments, or formally with objective tests, performance testing, or simulations. Learning self-assessments may ask participants to rate the following items:
- understanding of the skills/knowledge acquired
- ability to use the skills/knowledge acquired
- confidence in the use of skills/knowledge acquired


Level 3 : BEHAVIOR APPLICATION. This level measures changes in on-the-job behavior while the training is applied or implemented. This in¬formation often is collected through a follow-up survey or questionnaire. Key questions asked concern :
- the importance of the skills/knowledge hack on the job
- the frequency of use of the new skills/knowledge
- the effectiveness of the skills/knowledge when applied on the job


Level 4 : BUSINESS IMPACT. At this level the actual business results of the training program are identified. A paper-based or automated follow-up questionnaire can be used to gather this data. Depending on the training programs' performance and business objectives, data may be gathered on the following:
- productivity level
- quality
- cost control
- sales revenue
- customer satisfaction


Level 5 : RETURN ON INVESTMENT. At this level the monetary benefits of the program are compared with the cost of the program. The costs of the program must be fully loaded. The methods used to convert data should be reported. The ROI calculation for a training program is identical to the ROI ratio for any other business investment:
ROI(%) = ((benefits - costs]/costs) x 100
A benefit-cost ratio may also be calculated by dividing costs into benefits.

INTANGIBLE BENEFITS. When measuring the effectiveness of training, we also need to analyze intangible benefits.



Intangible benefits are measures that are intentionally not converted to monetary values because the conversion to monetary data would be too subjective. It is important to capture and report intangible benefits of the training program, such as:
- increased job satisfaction
- reduced conflicts
- reduced stress
- improved teamwork

hi eric!

the slides are a real help. thanks a lot for sharing it with us all.

regards.
Kavyanjali.

@ Kavy, hope you can use these slides to assist you in measuring the roi of your training programs.

Thanx a lot... it was very informative...