Designing Learning and Development for Return on Investment

CHAPTER 9

Calculating Return on Investment

The primary purpose of calculating return on investment (ROI) is to demonstrate the value of learning and development to the organization, and provide a financial summation of the contribution that learning and development has made toward the achievement of the organization’s strategic priorities. For this reason, what financial outcome and advantage variables are chosen to calculate ROI are specific to the organization in which the learning practitioner operates. The formula for ROI, however, is the same regardless of the organization.

Therefore; in order to evaluate the ROI for any intervention, the ...