Quantifying Training Output and ROI
I am currently working on an assignment where I need to quantify the training output or the ROI from each training program that we conduct in our organizations. I have made the checklist for the technical training programs, and it is easy when your concern is only about the technical aspect of the job. Now the problem is I need to suggest a process where the behavioral training outcome can be measured. Please suggest some ideas regarding this and how I should quantify these things.
E.g., if the training is given on stress management, then how can someone measure the success rate of the program? How can we quantify or find out the percentage of success?
Regards
From India, Pune
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4I am currently working on an assignment where I need to quantify the training output or the ROI from each training program that we conduct in our organizations. I have made the checklist for the technical training programs, and it is easy when your concern is only about the technical aspect of the job. Now the problem is I need to suggest a process where the behavioral training outcome can be measured. Please suggest some ideas regarding this and how I should quantify these things.
E.g., if the training is given on stress management, then how can someone measure the success rate of the program? How can we quantify or find out the percentage of success?
Regards
From India, Pune
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Dear Mr. Chinmaya Purohit, I just waited for other learned members or trainers to give a reply. Since none came forward, I am giving the reply.
Calculating ROI on Training Programs
If you want to calculate ROI on the training program, then first, you need to measure the loss of revenue because of a gap in a particular skill or knowledge. Aim the training program to bridge this gap. Later, you measure the change.
Example: Stress Management Training Program
For this program, you should do the following:
- Measure the employee stress level.
- Determine how excess stress is impacting the revenue of the company (like more job errors, customer dissatisfaction, etc.).
- Include these details in the training program and design the program.
- Conduct the training program. Calculate Total Training Charges (TTC) accrued for this training program (TTC includes trainers' charges + CTC of the participants for the number of days they attended the training + other charges like training material, LCD projector charges, etc.).
- After 'x' weeks or months, measure whether the participants have implemented the learning or not.
- Calculate the impact of the training. For this, go back to point (b) above and check the change.
- Calculate revenue loss avoided because of the training.
Final Comments
1. Implementation of the above method is very difficult, though not impossible. For this, you need to have a lot of support from your management. Secondly, to capture the details, you need to start generating sufficient records as well.
2. As per the Kirkpatrick model, we need to measure the amount of knowledge that the trainees have absorbed. For this, you need to conduct a post-training test as well. How many companies will be ready to do that? Whenever I had approached for the training, I had tossed this idea of a post-training test, but even top-notch companies refused this proposal, citing my suggestion as impractical.
3. However, I have worked in an MNC. They always conducted pre-training tests and post-training tests. They were very serious about the training.
Thanks,
Dinesh V Divekar
From India, Bangalore
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Calculating ROI on Training Programs
If you want to calculate ROI on the training program, then first, you need to measure the loss of revenue because of a gap in a particular skill or knowledge. Aim the training program to bridge this gap. Later, you measure the change.
Example: Stress Management Training Program
For this program, you should do the following:
- Measure the employee stress level.
- Determine how excess stress is impacting the revenue of the company (like more job errors, customer dissatisfaction, etc.).
- Include these details in the training program and design the program.
- Conduct the training program. Calculate Total Training Charges (TTC) accrued for this training program (TTC includes trainers' charges + CTC of the participants for the number of days they attended the training + other charges like training material, LCD projector charges, etc.).
- After 'x' weeks or months, measure whether the participants have implemented the learning or not.
- Calculate the impact of the training. For this, go back to point (b) above and check the change.
- Calculate revenue loss avoided because of the training.
Final Comments
1. Implementation of the above method is very difficult, though not impossible. For this, you need to have a lot of support from your management. Secondly, to capture the details, you need to start generating sufficient records as well.
2. As per the Kirkpatrick model, we need to measure the amount of knowledge that the trainees have absorbed. For this, you need to conduct a post-training test as well. How many companies will be ready to do that? Whenever I had approached for the training, I had tossed this idea of a post-training test, but even top-notch companies refused this proposal, citing my suggestion as impractical.
3. However, I have worked in an MNC. They always conducted pre-training tests and post-training tests. They were very serious about the training.
Thanks,
Dinesh V Divekar
From India, Bangalore
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Dear Dinesh,
Thank you for your suggestions. Yes, it is true that companies are serious about training when it comes to the technical aspect. The management wants to invest in training programs where the revenue part is directly concerned. However, when it comes to behavioral training, it's always an option in my organization.
Thanks for your guidance and support.
Regards,
Chinmaya Purohit
Executive
Training and Development
From India, Pune
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Thank you for your suggestions. Yes, it is true that companies are serious about training when it comes to the technical aspect. The management wants to invest in training programs where the revenue part is directly concerned. However, when it comes to behavioral training, it's always an option in my organization.
Thanks for your guidance and support.
Regards,
Chinmaya Purohit
Executive
Training and Development
From India, Pune
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ROI Training.zip
Training ROI Calculator.xls