Introduction
Training is an investment. To secure budgets and executive support, learning leaders must measure return on investment (ROI) effectively.
Models
- Kirkpatrick’s four levels of evaluation
- Phillips ROI model adding financial return
- Balanced scorecard approaches
Formulas
ROI (%) = (Net Benefits / Training Costs) × 100. Net benefits include productivity gains, reduced errors, and increased sales.
Case Example
A retail chain tracked sales improvements after product training. ROI was calculated at 150 percent within six months.
Conclusion
ROI is not just a number. It tells the story of how learning impacts business performance.