Is there an industry standard assumption regarding Return on Investment (ROI) on targetted training. I have heard that £6 for every £1 spent.
Has anyone else heard this or work to another assumption?
Many thanks
Andy
andy phillimore
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3 Responses
ROI
We normally use the companies targeted ROI for normal investments
ROi is real – not an assumption
Andy, ROI should be a real calculation based on real figures – agreed with real managers. It will also be different every time you do the calculation for different types of training.
Regards
Paul
ROI
Andy
I agree with Paul. I would just add that it is useful at the outset – the point of investment appraisal – to set out what type of return you are aiming for (both the nature of that return as well as its estimated financial value).
Jack Phillips, one of the leading figures in ROI, declines to offer any benchmark though does mention that a typical return on capital for other forms of investment is often around 15-20%.
Graham O’Connell
Centre for Management & Policy Studies