Training return on investment

Strategic perspective

Employee perspective

Key performance question this indicator helps to answer

How effective is our training in driving business results?

Why is this indicator important?

‘Training’ is often perceived as a ‘soft’ measure and, as such, it is argued that it is difficult to quantify the ‘hard’ (especially financial) benefits to the enterprise. Unfortunately, many from a Human Resources background, or function, continually make this argument.

However, in recent years we have seen a growing library of best practices that do indeed trace how training expenditure impacts financial performance; put another way, it provides a measure of the return on investment (ROI) on the training dollar.

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