Understanding Training ROI: What Simple Models Work Best for Everyone?

Dear All,

Can we have a discussion on ROI (Return on Investment) of training? We would appreciate views on the models of best practices that are simple and capable of common understanding.

Cheers,
Rajan

Hi,

I found this cool presentation on ROI of training. It is pretty informative and quite simple to understand.

Regards,
Prabha

Hi,

There is a classical approach based on Don Kirkpatrick's model of four levels of training evaluation. The other approach is a practical approach to it.

My question to you would be to explore who and why is asking this question? I am saying this because sometimes this question is asked in the context of reducing training expenses. If it is coming from an operations or business person, my advice is to check the context. Training is supposed to ensure the effectiveness of processes and skills, not just the results or guaranteed output.

The Indian Army is the largest investor in training. They never calculate the ROI as sometimes the benefits are of a notional nature. At times, training ensures basic level performance.

If it is an HR Head's question, then it must be linked to the quality of output, such as how many leaders have been created, what the improvement in sales conversions is, how the FTR has improved, etc. Pardon my slightly lateral approach to this issue. Views are welcome.

dd

Hi DD
Thanks for the critical view on this topic. But I don´t find any reason to compare the ROI of trainings on Indian Army and corporate organisation where we give focus on performance and growth ( or profit.?). Still your message of the methedology inherent in the Defence department can be an a lesson. Yet certainly we will not be allowed to be so luxurios at the cost of business.
Thanks,
Rajan