Professional Documents
Culture Documents
ROI of
Training
1
Agenda
2
Measuring the Effectiveness of
Training Program
3
Training Process
4
The Four Levels of Evaluation
Level 1 - Reaction
Level 2 - Learning
Four Levels
of Training
Level 3 – Behavior Effectiveness
Application
Level 4 – Business
Impact
5
The Four Levels of Evaluation
6
The Four Levels of Evaluation
7
The Four Levels of Evaluation
II. Learning
III. Behavior
Most Infrequent Difficult
IV. Results valuable
8
Level 1 - Reaction
Evaluate trainees’
reactions to the program:
Did they like the program?
Level 1 - Did they like the
Reaction
facilitators?
Did they like the training
accommodation and
facilities?
9
Guidelines for Evaluating Reaction
Sample of Program :
Reaction Facilitator :
2. How do you rate the facilitator? (knowledge, ability to deliver and communicate?)
a. Excellent
b. Very Good
c. Good
d. Fair
e. Poor
11
Level 2 - Learning
12
Guidelines for Evaluating Learning
13
Guidelines for Evaluating Learning
14
Level 3 – Behavior Application
• The frequency of
application of new
skills/knowledge/
Level 3 – attitudes (on the job)
Behavior
Application • The effectiveness of the
skills/knowledge/
attitudes (as applied on
the job)
15
Guidelines for Evaluating Learning
16
Example of Survey to Measure Behavior Application
Instruction:
The objective of this questionnaire is to determine the extent to which those who
attended the recent program on Leadership have applied the principles and techniques
that they learned there to the job.
Circle the answer that you consider appropriate for each question.
5 = Much more 4 = More 3 = Same 2 = Less 1 = Much less
17
Level 4 – Business Results
18
Guidelines for Evaluating Learning
19
Performance Indicators
• Downtime duration
• Number of defect products
• Sales volume
• Production unit
• Customer satisfaction index
• Response time to orders
• Number of accidents at work
• Others
20
Performance Indicators
• Job satisfaction
• Conducive working relationship
• Effective communication
• Stress rate
• Quality in decision-making
21
Example : Measuring Training Results
200.00
Program : TQM
Training
0.00
22
Example : Measuring Training Results
Program : 50.00
Sales Training
40.00
Results after 3
months training,
training 30 units
units/month.
10.00
0.00
23
Measuring
Return on Investment of
Training
24
Level 5 : Return on Investment of Training
Level 1 - Reaction
Level 2 - Learning
Level 3 – Behavior
Application
Level 4 –
Business Impact
Level 5 – Return
on Investment of
Training
25
Criteria for Selecting Programs for Levels
4 and 5 Evaluation
26
Benefits of ROI of Training
• Measure contribution
• Set priorities
• Focus on results
27
ROI of Training Model
Identify
Intangible Calculate ROI
Benefits of Training
Tabulate
Program
Costs
28
Return on Investment Formula
Net Program Benefits
ROI = X 100
Program Costs
Example :
$ 230,625 – 88,500
ROI = X 100
$ 88,500
ROI = 161 %
29
Collecting Data
• Identify appropriate
Collect performance indicators
Data
• Develop a collection plan
30
Example of Performance Indicators
Output Time
31
Example of Hard Indicators
Cost Quality
32
Example of Performance Results
33
Isolating the Effects of Training
Using
Control Group
Trend
Methods to Lines
Isolate the
Effects of Participants
Training Estimate
Supervisors of
Participants
Estimate
34
Isolating the Effects of Training
35
Isolating the Effects of Training
36
Trend Lines Analysis
Trend Projection
37
Isolating the Effects of Training
39
Isolating the Effects of Training
42
Steps to Convert Data to Monetary Values
Steps Illustration
43
Steps to Convert Data to Monetary Values
Steps Illustration
44
Steps to Convert Data to Monetary Values
Steps Illustration
45
Tabulating Cost of the Program
46
Tabulating Cost of the Program
47
Tabulating Cost of the Program
49
An Example to Illustrate ROI analysis
51
Enhancing Training
Effectiveness
52
How Effective is Your Training Program?
53
Source of Barriers to Training Transfer
54
The Transfer Partnership
55
The Transfer Matrix
Time Periods
Before During After
Manager
Role Players
Trainer
Trainee
56
Before Training
58
Before Training
59
During Training
• Prevent interruptions
Manager • Transfer work assignment to others
• Monitor attendance and attention to training
• Recognize trainee participation
• Participate in transfer action planning
• Review information on employee in training
• Plan assessment of transfer of new skills to the
job
60
During Training
61
During Training
62
After Training
63
After Training
64
After Training
• Practice self-management
Trainee • Review training content and learned skills
• Develop a mentoring relationship
• Maintain contact with training ‘buddies’
65
Recommended Further Readings
66
End of Material
67