Measuring the Effectiveness of

Training Program

Measuring Return of Investment ROI
of Training

Enhancing the Effectiveness and ROI
of Training


Measuring the Effectiveness of
Training Program
Training Process
Training
Need
Analysis
Training
Evaluation
Training
Delivery
Training
Objectives
Measure
Reaction,
Learning,
Behavior,
and results
Techniques
Include on-
the-job-
training,
action
learning,etc.
What are
the training
Needs for
this person
and/or job
Objectives
should be
measurable
And
observable
The Four Levels of Evaluation
Level 1 - Reaction
Level 2 - Learning
Level 3 Behavior
Application
Level 4 Business
Impact
Four Levels
of Training
Effectiveness
The Four Levels of Evaluation
Level 1 - Reaction
Evaluate trainees reactions to

the program. Did they like

the program ?

Did they think it worthwhile?
Test the trainees to determine if

they learned the principles, skills,

and facts the were to learn.
Level 2 - Learning
The Four Levels of Evaluation
Ask whether the trainees behavior on the job
changed because of the training program.
For example,
are employees in the stores complaint
department more courteous toward disgruntled
customers than previously?
What final results were achieved in terms
of the training objectives previously set?
Did the number of customers complaints
about employee dropped?
Did the reject rate improved?
Was turnover reduced?
Level 3
Behavior
Application
Level 4
Business
Results
Example: Measuring Training Results
Program : TQM
Training
Results after 3
months of training
No. of defects
dropped to 80
units/day



200.00


150.00


100.00


50.00

0.00
Before training After training
120 units
80 units
Example: Measuring Training Results
Program :
Sales training
Results after 3
months of training
No. of sales per
salesman
increased to 30
units/month



50.00

40.00


30.00


20.00


10.00

0.00
Before training After training
20 units
30 units


Measuring
Return on Investment of
Training
Criteria for Selecting Programs for Measuring
ROI of Training
Importance of the program in meeting the
organizations goals.

Cost of the program.

Visibility of the program.

Size of the target audience.

Extent of management interest
Benefits of ROI of Training
Measure contribution.

Set priorities.

Focus on results.

Management perceptions of training.
ROI of Training Process
Collect
Data
Isolate the
Effects of
Training
Convert Data
to Monetary
Values
Calculate ROI
of Training
Tabulate
Program
Costs
Identify
Intangible
Benefits
Return on Investment Formula

ROI =


Example :
Costs per program (25 participants) $ 88.500
Benefits per program (1
st
year) $ 230.000

Net Program Benefits
Program Costs
X 100

ROI =

$ 230.000 - 88.500
$ 88.500
X 100
ROI = 160 %


Enhancing the Effectiveness and
ROI of Training

Source of Barriers to Training Transfer
Lack of reinforcement on the job.

Interference from immediate (work) environment.

Non-supportive organizational culture.

Trainees perception of impractical training programs.

Separation from the inspiration or support of the trainer.
The Transfer Partnership
Trainee
Trainee
Trainee Trainer
Trainer
Manager
Trainee recognizes need for new
skills
Trainer designs and / or delivers
learning experiences
Manager supports learning and
application on the job
Before Training
Manager
Collect baseline performance data

Involve supervisors and trainees in needs analysis process

Involve trainees in program planning

Brief trainees on the importance of training
(course objective, content, process, and application on the job)

Review instructional content and materials

Plan to participate in training sessions

Encourage trainees attendance at all sessions

Before Training
Trainer
Align the training plan with the organizations strategic
plan

Systematically design instruction

Provide proactive opportunities

Design a peer coaching component for the program and
its follow-up activities
Before Training
Trainee
Provide input into program planning
Actively explore training options
Participate in advance activities
During Training
Manager
Prevent interruptions
Transfer work assignment to others
Monitor attendance and attention to training
Recognize trainee participation
Review information on employee in training
During Training
Trainer
Develop application-oriented objectives

Provide realistic work-related tasks

Give individualized feedback

Provide job performance aid
During Training
Trainee
Maintain an ideas and application notebook

Participate actively

Form support groups

Plan for applications

After Training
Manager
Provide opportunities to practice new skills

Reduce job pressure initially

Give positive reinforcement

Arrange proactive (refresher) sessions
After Training
Trainer
Provide follow-up support

Conduct evaluation surveys and provide feedback

Provide refresher problem-solving sessions
After Training
Trainee
Practice self-management

Review training content and learned skills

Develop relationship

Maintain contact with training buddies


End of Material