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Calculating Return on Investment


Hi, I need help regarding calculation of Return on Investment. Ideally, to get a quantitative ROI figure, you need to have certain figures like average total cost on employee, value of reduced staff turnover etc. Now I understand that these figures should be available but in current scenario they are not available until next year.
Secondly, the impact assessment for a person's performance entails excessive and continuous feedback from Line Managers, Peers which from experience of past year is a big failure. The Line Managers despite continuous follow-up are not responsive.

Keeping in view the afore-mentioned problems, If I am to calculate ROI and that too in a comprehensive quantitative way is challenging and seems very tough. So, if anyone has suffered from these problems, can they suggest any alternate way to display or project ROI?

Will be grateful.

Momina Javaid

One Response

  1. You may have to think the unthinkable.
    Hello Momima – In my experience the process of undertaking an ROI analysis of training delivered does not require ‘excessive and continuous feedback from Line Managers’ indeed in some cases it requires none. What is required however, upfront, before any training is undertaken is a clear thorough analysis of exactly why the training is required, what will change as a result of the training and is this financially beneficial to the host organisation?

    If the training which you are attempting to undertake an ROI of did not have this analysis undertaken upfront or what was done was inadequate then my approach in your situation would be slightly different. Precise outcomes have to be identified, not generalities and vague results. It has to be specific.

    I would review the current programmes and attempt to analyse what their intention and purpose is/was, not in terms of knowledge and skill acquired by the learners but in terms of outputs and results they are intended to achieve. After doing this you may well identify clearer criteria against which the major financial metrics are simpler to directly associate. But there is also a different reality you might face if you do this, and you may well have to think the unthinkable. It *might* be that the training you have undertaken has no real definable outputs. The training was essentially undertaken because it was deemed to be a ‘good thing’or historicaly it was always done this way. In these circumstances you might have identified training which your organisation is investing in which is based on groundless needs and poor and inadequate analysis. Essentially the process is wasting the organisation’s money, managers time and your energy overseeing its delivery.

    If you send me your e mail address I’ll send you a case study to illustrate how to go through this process and an Excel spreadsheet I have developed together with associated Word documents explain how to go through the process. My contact details are: [gplatt at]


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