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Learning Objectives

Return on Investment in Training Michael Devaney Enterprise Ireland Improving Business Performance Through Investing in Training Conference Thursday, 26th February 2004. Learning Objectives. Understand the need to measure Strategic HRD activities

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Learning Objectives

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  1. Return on Investment in TrainingMichael DevaneyEnterprise IrelandImproving Business Performance Through Investing in Training Conference Thursday, 26th February 2004

  2. Learning Objectives • Understand the need to measure Strategic HRD activities • Understand the key elements of the Return on Investment in training framework and its application

  3. Strategic HRD • Strategic HRD is a set of processes for developing people at work which should be linked to business strategy… (Twigg and Albon) • Growing need to ensure that the training is working and that it adds value to important bottom-line measures(productivity,quality, customers) • Evaluation is part of this training process

  4. Level 1. Reaction & planned action 2. Learning 3. Application 4. Business impact 5. Return on investment Measurement focus Measures participant satisfaction with the programme and captures planned actions Measures changes in knowledge, skills, and attitudes Measures changes in impact variables Measures changes in business impact variables Compares programme benefits to the costs Evaluation Levels Defined

  5. Evaluation Targets LevelTargets Level 1. Reaction 100% Level 2. Learning 50% Level 3. Job application 30% Level 4. Business impact 20% Level 5. ROI 10%

  6. Activity Characterised by: No business need for the programme No assessment of performance issues Results Charactiersed by: Programme linked to specific business needs Assessment of performance effectiveness Paradigm Shift in Training and Development / Performace Improvement

  7. Activity Characterised by: No specific measurable objectives No measurements of results or cost benefit analysis Planning and reporting on training is input focused Results Charactiersed by: Specific objectives for behaviour and business impact Measurement of results and cost benefit analysis (ROI) Planning and reporting on training is output focused Paradigm Shift in Training continued…

  8. Training Needs Assessment • A complete needs assessment incorporates the business measures needing improvement.

  9. The Best Impact Objectives: • Must contain measures that are linked to the Skills and Knowledge taught in the program • Describe measures that are easily collected • Are results-based, clearly worded and specific • Specify what the participant has accomplished in the business unit as a result of the training Hard data Soft data Output Customer service Quality Work climate Costs Work habits Time focused

  10. Evaluation Purposes Evaluation Instruments TABULATE PROGRAMME COSTS CONVERT DATA TO MONETARY VALUE COLLECT DATA ISOLATE THE EFFECTS OF TRAINING Evaluation Timing Evaluation Levels IDENTIFY INTANGIBLE BENEFITS ROI MODEL CALCULATE THE RETURN ON INVESTMENT

  11. Case Study - Medifare

  12. Benefits of Return on Investment • Measures Contribution of Training • Aids in Priority Setting • Focuses on Results • Alters Management Perceptions of Training

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