Professional Training ROI: Where Are the Returns?
The costs of professional training are easily found. Finding and measuring professional training value can be a challenge.
Can You Measure Professional Training ROI?
Many business people discover just how difficult it is to measure training ROI when they hear something like this from the boss:
Show us in terms we can believe that training has a positive ROI. Otherwise expect a smaller training budget!
Business professionals know that words of that kind are especially likely just after:
- Acquisitions and mergers.
- New senior leadership arrives.
- Working capital dries up.
- Zero-based budgeting begins.
Training Costs are Easy to Find
The “Investment”, or cost side of professional training ROI is usually easy to find. Training and HR Managers probably have the data on hand already. Usually they record such things as:
- Trainee head counts.
- Training certifications.
- Utilization rates for instructors
- Training expense per employee.
- Total course costs.
Where’s the Hard Evidence for Training Returns?
The challenge in most cases, however, is producing hard evidence for “returns,” or proving training value.
The good news is that you can indeed measure training value objectively, quantitatively, and credibly. You can in fact measure value to the organization and value to the trainee.
The other-than-good news is that putting effective training measurement in place takes time and effort.
Read the full story in Return on Investment for Training. This article presents a structured approach to measuring training ROI. Seven practical steps in this approach can be used in a wide range of settings.
Professional Training ROI? Take Action!
See the article Business Benefits for more on the business case benefits rationale. The article also covers valuing financial and non financial benefits including the value of training.
For in-depth coverage business case credibility, see the ebook Business Case Essentials.
For more on building cross-organizational input into your case, see the recent blog post Bring on the Second Team.
See the article Total Cost of Ownership for more on building a credible cost model.
Professional training ROI? Learn and practice the leading business case building methods at a Business Case Master Class Seminar. Learn case design from our ebooks, the Business Case Guide or the best selling authority in print, Business Case Essentials.