Costs

Return on Investment (ROI) methods are applied for in-depth quantitative evaluation of programs by employers who want to have very concrete information about the value of investing in workplace basic skills development.  For them, ROI measurement is crucial.  Generally, ROI expresses the financial return on corporate investment by measuring the full cost of training and relating it to corporate financial performance.

ROI measurement of workplace education programs is possible using a variety of evaluation software packages.  Several ROI packages are available for a fee from consultants, who also offer professional services to help employers apply them to their WEPs.  The advantage of this approach is that the experts can help you ensure you get an accurate result that is customized to meet your need.

One ROI tool is available for download without charge and can be used independently.  

Purchase

For an established consulting company that has measured a number of public and private sector organizations' WEPs and offers specialized, customizable ROI software, contact:
    URL: http://www.imperialcorp.com

For a combination of training media selection and ROI software, ADVISOR 3.5, see:
    URL: http://www.bnhexpertsoft.com/adv3new.htm

Without Charge 

For a corporate ROI methodology already in use within Lord Corporation, a large North Carolina-based company, that may be applied by other companies, see:  ROI Method. 

CareerOneStop's Testing and Assessment Center provides tools and guidelines for employers on skill testing, assessment, credentials and certifications.
     URL: http://www.careeronestop.org/TESTING/TestingAssessmentHome.asp

Calculate the net cost and ROI of online training vs. traditional training methods using this tool from the Credit Union National Association.
     URL: http://training.cuna.org/trainers/roi_calc.html

The free Training Payoff Calculator, from Addison, IL-based OneOnOne Computer Training, helps executives calculate the ROI from training. The calculator works with variables, such as the number of people to be trained, average learning time, and costs of training effort to produce projections of profit and ROI. 
     URL: http://www.oootraining.com/ooo/support/calculator.html

Workforce.com provides employers with features and news articles, assessments, surveys, worksheets, sample documents and links to additional resources for staff assessments and skill testing.
     URL: http://www.workforce.com/section/06/

Make training more accountable by incorporating these guiding principles as operating standards in your return-on-investment methodology. Standards and guiding principles keep the evaluation credible and allow for replication of the methodology.
     URL: http://www.workforce.com/archive/article/23/31/90.php

To measure true cost for ROI purposes, consider indirect costs along with direct costs. Companies differ in how they calculate the cost of internal training, but most include the direct costs incurred by the training function, which are discussed in this article.
     URL: http://www.workforce.com/archive/article/22/13/88.php

A Canadian sector council report on calculating the return on training investment includes checklists to help employers identify costs and benefits and a case study example.
     URL: http://www.nssc.ca/files/roti.pdf (1.03 MB)

For problems or questions regarding this web site contact campbell@conferenceboard.ca.
Last updated: Aug. 8, 2008.