How to Measure Training Effectiveness

It is common practice to use Jack Phillips's 1991 Return on Investment (ROI) method to evaluate
the success of a training initiative. A training program's Return on Investment (ROI) coefficient
is a percentage that indicates the program's predicted benefit in relation to the planned
expenditure of resources. Return on investment (ROI) is determined by contrasting all training
costs with all training benefits. Training return on investment = (Net Benefits of training) /
(Costs of training) times 100. More productivity, higher sales, cheaper expenses, and reduced
turnover are just some of the ways in which a training program may improve a company's
bottom line.

Calculate a monetary value for the improved performance indicators you expect to see as a
consequence of the training. The whole price of training includes not just direct costs but also
intangibles like employees' time. For every dollar put into training, the rate of return reveals how
much was earned. The expenses of the training must be more than the benefits in order for there
to be a positive return on investment (ROI). According to Anderson's Value of Learning model,
we should prioritize our evaluation efforts by checking to see whether the learning program's
goals mesh with the company's overall goals.

By evaluating how well an event meets each tier of learning value, individuals may determine
whether or not the experience was worthwhile and instructive. Teachers may help students gain
study motivation by highlighting the many ways in which their education can improve their
lives. Lastly, by tailoring classes to each individual student, teachers may meet their students'
needs and foster their interests.