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Return on Investment


I am a newly appointed trainer and have to show the value of training in my organisation in monetary terms.

How can you work out ROI for training courses?
Lisa Young

3 Responses

  1. A few ideas on putting a cash value to training

    You don’t mention what type of industry you work in so I’ll give you some general information.

    In terms of the monetary value of training you may want to consider some of the following –

    Reduction in error rate/number of complaints
    Reduction in scrap/spoiled work
    Reduction in re-work
    Reduction in accidents and “near misses”
    Increase in “right first time”

    Other area’s could be-

    Increase in customer satisfaction/compliments/thankyou’s
    Increase in individual/team performance

    These are just a few ideas. I hope they are helpful.

  2. Don’t succumb, it’s a stupid question.
    Don’t succumb. It’s a stupid question.

    Senior managers don’t ask for a ROI on the stationery cupboard or the FD – so why training? The reason is managers refuse to accept personal responsibility for training and staff development. The development of staff is central to the effective business, not a bit tacked on the side and run by a trainer.

    So, what the business wishes to achieve is the first question. The second is – how are we going to do it. There are numerous methods of helping an organisation reach its objectives, training is one of them.

  3. Measuring ROI on training programmes
    Dear Lisa

    Measuring ROI is possible and practical, but it will take some time and planning.

    I work in a team that has been developing methods to measure ROI in our organisation. I would be happy to talk you through what we do, if you are interested. Send me an email, and I will get in touch.

    This is a big topic, and you might consider looking at the ASTD web site on, which has a discussion forum dedicated to ROI. Try also Jack Philips’ book Handbook of Training Evaluation and Measurement Methods.

    Good luck.


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