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. |