123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Education >> View Article

Training Roi Calculator

By Author: kim valerio
Total Articles: 118

Assessing training effectiveness often entails using the four-level model developed by Donald Kirkpatrick (1994). According to this model, training evaluation should always begin with reaction to the training (level one), and then, as time and budget allows, should move sequentially through learning, transfer, and results – levels two, three, and four. Information from each prior level serves as a base for the next level’s evaluation. Thus, each successive level represents a more precise measure of the effectiveness of the training program, but at the same time requires a more rigorous and time-consuming analysis.
The Fifth Level of Evaluation

Kirkpatrick’s four-level model, however, does not require a specific cost savings to be ascertained. To obtain a true return on investment (ROI) valuation, the cost savings of the training program are compared to the cost of implementing the training program. According to Phillips (2005), this process moves Kirkpatrick’s four-level model to the next level. During the fifth level of evaluation, Level 4 data is collected, converted to monetary values, and compared to the cost of the program to denote the return on the training program’s investment..
ROI Calculation

The ROI formula, according to Phillips (2005), is the annual net program benefits divided by program costs, where the net benefits are the monetary value of the benefits minus the costs of the program. Phillips (2005) ROI formula is as follows:

ROI (%) = Benefits – Costs x 100 ÷ Costs

As an example, let’s assume that the benefits of a project management training program, isolated from other factors occurring within the organization, are $350,000.
Let’s also assume that the total cost of the program is $125,000.
The net program benefits are $350,000 – $125,000 = $225,000.
Following the formula above:
ROI = $225,000/$125,000 (1.8) x 100
ROI = 180%; thus for every $1.00 invested, $1.80 is returned after the costs of the project management training program are recovered.
ROI Calculator

The ROI Calculator is designed to help you calculate the ROI of a training program.

If you want to find out more details about career development, we can help you out on this concern. You can go to this website for more details.

Total Views: 46Word Count: 347See All articles From Author

Education Articles

1. Things To Check Before Choosing Institute For Diploma Courses In Delhi Ncr
Author: kikicentre

2. 70-764 Exam Dumps
Author: Peter Baumann

3. Why It Is Important To Have A Good Digital Marketing Strategy
Author: digitalyogesh

4. Know More About Java Programming Language Features
Author: Illiana Carter

5. Here's What Industry Insiders Say About Chartered Accountants
Author: Austin Loader

6. Wbpsc Admit Card 2017–18| Download Asst Professor/manager Exams Online Entrance Card
Author: Recruitment Result

7. 70-713 Certification Guides
Author: 70-713 Exam Dumps

8. 70-348 Preparation Guides
Author: 70-348 Study Guides

9. Benefits Of Choosing Technical Courses After 12th Class
Author: kikicentre

10. 70-334 E-books
Author: Peter Baumann

11. Gain A Good Understanding Of Primavera P6 Software And Learn To Use It Efficiently For Your Project
Author: Multisoft Virtual Academy

12. Automation Frameworks Use With Selenium Webdriver
Author: Siyaram Yadav

13. 1y0-202 Test
Author: Peter Baumann

14. Ccie Routing And Switching Lab Workbook
Author: Abigail Revan

15. Online Onboarding In A Company – What To Understand About The Process
Author: Jan Procházka

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: