What is Return on Investment (ROI)

Return on Investment (ROI) is a measure of the monetary benefits obtained by an organisation over a specified time period.  It is used to determine the profitability of the training program.   The training program is evaluated by comparing the amount and the timing of the expected gains to the investment costs.  ROI is the extent to which the benefits (outputs) of training exceed the costs (inputs).

Determining Training Return on Investment (ROI)

The vital role of training in an organisation is in the search for lower costs, higher standards, greater profitability and enhanced customer satisfaction.   Many organisations state that employees are their greatest assets.  If you believe this statement is correct then it is time to look at training as an investment in your organisation’s human capital and not just as an expense.  

What are the benefits of Training?

• It can lead to improved performance, productivity and activity
• Improvement in staff moral and retention
• Highly attractive to skilled workers
• Training produces the best results when part of an overall business strategy
• Structured training processes can help achieve business objectives
• Training is a key to staying competitive
• Increased efficiency and reduction of waste
• Increasing organisational standards

What is Return on Investment (ROI)

Return on Investment (ROI) is a measure of the monetary benefits obtained by an organisation over a specified time period.  It is used to determine the profitability of the training program.   The training program is evaluated by comparing the amount and the timing of the expected gains to the investment costs.  ROI is the extent to which the benefits (outputs) of training exceed the costs (inputs).

Determining Training Return on Investment (ROI)

The vital role of training in an organisation is in the search for lower costs, higher standards, greater profitability and enhanced customer satisfaction.   Many organisations state that employees are their greatest assets.  If you believe this statement is correct then it is time to look at training as an investment in your organisation’s human capital and not just as an expense.  

What are the benefits of Training?

• It can lead to improved performance, productivity and activity
• Improvement in staff moral and retention
• Highly attractive to skilled workers
• Training produces the best results when part of an overall business strategy
• Structured training processes can help achieve business objectives
• Training is a key to staying competitive
• Increased efficiency and reduction of waste
• Increasing organisational standards