Technology-Based Learning Strategies Report - APEC HRDWG Wiki

E. Measuring Successbenefit calculation. For accurate results, evaluators may use a control group who do notreceive the same training or who do not receive any training at all.5. ROI: Return on investment is a measurement widely used in industry as a metric tomeasure value of a specific investment. As a training metric, this level was added toFitzpatrick’s framework. 71 To calculate monetary ROI, an organization needs to identifythe total financial benefits it draws from a TBL initiative, then subtract the totalinvestment made to develop, produce, and deliver that program. A simple ROI formulalooks like this:(total benefit - total costs) = ____ X 100 = ROItotal costsIn this calculation, it is particularly important, that all benefits are accurately identifiedand measured. This includes money saved by the organization. In addition to monetaryvalues, ROI can also be applied to less tangible values, such as improved accuracy,improved timeliness, and higher retention of employees.Though true impact of training is not easy to measure, there is ample evidence that effectivetraining can have a substantial direct and indirect ROI. For example, a four-year study by ASTDshowed that firms that invest $1,500 per employee in training compared to those that spend $125experience on average 24 percent higher gross profit margins and 218 percent higher income peremployee. In addition, a Louis Harris and Associate Poll indicates that among employees whosay their company offers poor or no training, 41 percent plan to leave within a year. Conversely,of those that say their company offers excellent training, only 12 percent say they plan to leave.71Phillips, 1997.34