Measuring ROI of Training

Measuring
ROI of Training
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Training Process
Training Training Training

Training
Need Objectives Evaluation
Delivery
Analysis
What are Objective Techniques Measure

the training should be include on- reaction,
needs for measurable the-job- learning,
this person and training, behavior,
and/or job? observable action and results
learning, etc.
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The Four Levels of Evaluation
Level 1 - Reaction
Level 2 - Learning
Four Levels
of Training
Level 3 – Behavior Effectiveness
Application
Level 4 – Business
Impact
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Evaluate trainees’ reactions to Level 1 -

the program. Did they like the Reaction
program? Did they think it
worthwhile?
Test the trainees to determine if Level 2 -

they learned the principles, Learning
skills, and facts they were to
learn.
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Ask whether the trainees’ behavior on the job Level 3 –

changed because of the training program. For Behavior
example, are employees in the store’s complaint Application
department more courteous toward disgruntled
customers than previously?
What final results were achieved in terms of the Level 4 –

training objectives previously set? Did the number Business
of customer complaints about employee drop? Did Impact
the reject rate improve? Was turnover reduced,
and so forth.
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Value of Frequency of Difficulty of

Information Use Assessment
Level
Least Frequent Easy
I. Reaction valuable
II. Learning
III. Behavior
IV. Results Most Infrequent Difficult

valuable
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Level 1 - Reaction
Evaluate trainees’
reactions to the program:
Did they like the program?
Level 1 - Did they like the
Reaction
facilitators?
Did they like the training
accommodation and
facilities?
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Guidelines for Evaluating Learning
1. Use a control group if practical

2. Allow time for behavior change and application to take
place
3. Evaluate both before and after the program if practical
4. Survey and/or interview one or more of the following :
trainees, their immediate supervisor, their subordinates,
and others who often observe their behavior
5. Get 100 percent response or a sampling
6. Repeat the evaluation at appropriate times
7. Consider cost versus benefits
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Example of Survey to Measure Behavior Application
Instruction:
The objective of this questionnaire is to determine the extent to which those who
attended the recent program on Leadership have applied the principles and techniques
that they learned there to the job.
Circle the answer that you consider appropriate for each question.
5 = Much more 4 = More 3 = Same 2 = Less 1 = Much less
Time and energy spent after the prgram

compared to time and energy spent before
the program
Understanding and Motivating
1. Trying to understand my subordinates 5 4 3 2 1
2. Listening to my subordinates 5 4 3 2 1
3. Praising good work 5 4 3 2 1
4. Talking with subordinates about
5 4 3 2 1
their family and personal interests
5. Asking my subordinates for their ideas 5 4 3 2 1
6. Applying "Management by Walking Around" 5 4 3 2 1
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Level 4 – Business Results
• Indicate the extent to which you

think this program has
influenced each of these
measures in your work unit,
Level 4 – department, or business unit:
Business • Productivity
Results • Quality
• Customer Response Time
• Cost Control
• Employee Satisfaction
• Customer Satisfaction
• Other
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Example : Measuring Training Results
200.00
Program : TQM
Training
Results after 3 150.00

120 units
months of
training, number
100.00
80 units
of defects
dropped to 80
units/day
50.00
0.00
Before training After training
Example : Measuring Training Results
Program : 50.00
Sales Training
Results after 3 40.00
months training, 30 units

number of sales 30.00
per salesman 20 units

increase to 30 20.00
units/month.
10.00
0.00
Before training After training
Measuring
Return on Investment of
Training
Level 5 : Return on Investment of Training
Level 1 - Reaction
Level 2 - Learning
Level 3 – Behavior
Application
Level 4 –
Business Impact
Level 5 – Return
on Investment of
Training
ROI of Training Model
Isolate the Convert Data

Collect
Data Effects of to Monetary
Training Values
Identify
Intangible Calculate ROI
Benefits of Training
Tabulate
Program
Costs
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Measuring ROI of Training

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Measuring ROI of Training

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Measuring

Training Training Training

What are Objective Techniques Measure

Evaluate trainees’ reactions to Level 1 -

Test the trainees to determine if Level 2 -

Ask whether the trainees’ behavior on the job Level 3 –

What final results were achieved in terms of the Level 4 –

Value of Frequency of Difficulty of

IV. Results Most Infrequent Difficult

1. Use a control group if practical

Time and energy spent after the prgram

• Indicate the extent to which you

Results after 3 150.00

Before training After training

Results after 3 40.00

months training, 30 units

per salesman 20 units

Before training After training

Isolate the Convert Data

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