Measuring the Return on Investment of Training
Enabling you to motivate the case for training and show Return on Investment for interventions
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The ROI workshop assists organisations to determine the ROI for a training intervention. HR and training managers know that they have to measure their training interventions, but they don't know how to do it. Otherwise training is simply a waste of time, effort and money.
The ultimate aim of any training programme is to improve organisational performance. In order to measure performance a person must determine the monetary value of performance in its current status. After the training intervention has taken place, the learners’ performance needs to be measured again, thus determining if there was an improvement. The workshop will guide the group through a simple process to determine the ROI before the training programme is implemented, through pre-assessment and by making certain assumptions, and then determining the true ROI once the training programme has been implemented.
Practical guidelines will be provided on how to implement the steps to calculate the cost versus the benefits of the learning that has taken place. Essential information will be provided to guide you to calculate the cost by attaching a rand value to training interventions and changed behaviour as a result of the effect of training. An individual will be able to apply these steps independently in the work environment.
Another unique feature of the workshop is the inclusion of Excel spreadsheets to enable the learner to calculate the costs and determine the ROI of the training intervention.
COURSE OUTLINE
Entirely practical in orientation, each module covers a particular outcome in terms of the ROI process. These outcomes are supplemented with practical information enabling the candidate to assess and extend his/her knowledge of the particular ROI topic. The guide is packed with ideas, techniques, graphics, flow charts and ROI tools to make sure solid follow-through is built into ROI interventions. A wide range of practical examples, activities and real-life case studies are provided. The following modules will be covered:
Module 1: The need for ROI
- Strategic objectives of the organisation; what are the training problems managers face in the business?
- Performance management and current versus desired behaviour. Why do we have to develop skills and transfer learning - the problems experienced and improvement processes
- What are the assumptions regarding ROI, and the history of ROI? Why is there a need for measuring ROI?
Module 2: Performance Management and ROI
- What is the process flow from Performance Management and Job Weighting to linking competencies to a Job Description (JD) according to Key Performance Indicators?
- How can uniformity be achieved by following standardized processes?
- How do you use performance management measurement as an organisational tool to develop competencies and measuring current competencies versus desired competencies?
Module 3: Performance Standards and the time frame to learn
- Link Performance Standards to Key Performance areas (KPA)
- Break each outcome down to equate to the time to learn and achieve competency.
- Link these outcomes as well as the inter-personal skills to competence. Link these outcomes of learning to the organisations’ Training Plan and on the job-specific skills according to Performance Management requirements
Module 4: The cost of learning
- Time lost on production while learning
- Training venue floor space and fixed costs
- Learning material design and development time
- Training equipment
- Assessment costs
- Use the cost of learning for budgeting purposes
- Licensing fees
- Marketing costs
Module 5: Assessment to establish pre- and post performance
- Determine the gap in performance by assessing current competencies and post training competencies
- How to link behaviour to performance management by specifically addressing the skills gap for which the cost was incurred to transfer learning to the workplace
- Determine the cost of the value added by demonstrating current performance to determine what is the rate of return on the investment
Module 6: Evaluating ROI as a result of the impact of training
This module covers the last step in the process by evaluating the impact of training to achieve strategic objectives by attaching a rand value to all the processes previously followed. Evaluation is done by establishing input, the processes followed and the value of the outputs.
- What is the revenue impact on the organisation?
- What is the break-even point when a training programme becomes viable?
Module 7: Practical application in the workplace
This chapter concludes with an Implementation Plan to create organisational awareness of the process of measuring the benefits of training in the organisation. The first step in the process is communication of the intent to ensure participation in and understanding of the process.
- The importance of ROI reporting to management
- The financial calculation could be used for the training budget for the year ahead.
- All the frequently asked questions are discussed to assist the user back in the workplace.
