Introduction
Executives want proof that training investments deliver value. Measuring ROI provides that evidence and secures future funding.
Models
The Phillips ROI model calculates ROI as (Net Program Benefits / Program Costs) x 100. Benefits include increased sales, reduced errors, and faster productivity ramp.
Metrics
- Pre- and post-program performance
- Productivity measures
- Error rates
- Customer satisfaction improvements
Case Study
A logistics company implemented safety training and measured a 40 percent reduction in accidents. The savings in insurance premiums and downtime generated a 300 percent ROI within the first year.
Conclusion
Measuring ROI requires planning before training begins. Define objectives, gather baseline data, and isolate the effects of training. Done well, ROI analysis transforms training from a cost center to a strategic asset.