4 ways to measure ROI of Training Programs

Over the years, training programs have become a feel-good factor and is mostly linked to good food, a day off and basking in a good hotel. However, at beginning of every yearโ€™s budget, HR professionals and other stakeholders keep busy identifying ways to develop their teams, to stay competitive in the business environment. Sadly enough, more time is spent by department heads and training managers on deciding the menu than on designing the program.

Inability to measure the efficiency of training program is at the root cause of this rot. Now, if you are genuinely interested in up-skilling your team, how would you put up the measurement matrix to demonstrate the efficiency of the program. If you can indeed measure the efficacy, it would be a cakewalk to get the budget approved by your manager or the finance team.

Kirkpatrick, who is an expert of this field published a taxonomy of different kinds of data, which can be used in evaluating the efficacy of training programs in organisations or in other HR-interventions.

1. Reaction

This parameter measures the degree of satisfaction that the participant feels about the training session they have just attended. Participants would find the training favourable, engaging and relevant to their jobs.

This is the most widely used method, in which a questionnaire submitted to participants with request to receive response is done. Satisfaction levels can be measured with the program content or the trainerโ€™s delivery style. To garner honest reaction, best practice is to run anonymous survey. However, the results reflect the moment in time response and go beyond making the participant happy by selecting a good hotel or an elaborate food menu.

2. Learning

This parameter measures the degree to which the participant absorbed or imbibed the knowledge and skill imparted and to what levels have their attitudes changed. Participants acquire the intended knowledge, skill, attitude, confidence and commitment, based on their participation.

Best practice here is to administer knowledge tests before and after the training program

3. Behaviour

This parameter measures the degree to which the behaviour at work changed because of attending the training program. Participants apply what they learned during training once they are back on the job.

Asking open question either to the participants or their manager is the simple methods of getting evidence here. The questions can be around what they did differently after the program. Alternate is to observe and measure the behaviour change.

4. Results

This parameter measures the degree the companyโ€™s core metrics has been impacted by the training program. The targeted outcomes occur because of the training and the support and accountability package.

Hard numbers and data points that relate directly to the annual business plan are put across to measure; namely profits, return on investment, sales production quality, quantity, schedules, cost ratios, staff attrition, employee grievances, and staff engagements.

Understanding the importance to measuring the evidence and proof that a training program as the change instrument, a strong need is established for measuring ROI of resources that you garner for upskilling your team.

(source: humanresourcesblog.in)


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