123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Education >> View Article

Training Roi Calculator

By Author: kim valerio
Total Articles: 118
Comment this article

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: 101Word Count: 347See All articles From Author

Add Comment

Education Articles

1. Learn Yoga At Yoga Retreat Paros
Author: Lee Pate

2. How To Build A Career In Networking?
Author: GrrasSolutions

3. Nail It With Your Nails
Author: tanya

4. Agile Training Importance For Organization
Author: anitha

5. Mahadbt Scholarship How To Apply Online
Author: MahaDBT Site

6. How Can Fresher Start To Learn About Quorum?
Author: Block chain council

7. Governance In An Organization Is Not A Magic
Author: Brody Lukas

8. Reasons Why You Should Learn Selenium?
Author: globalleads

9. Find Education Hubs Near You
Author: Vivek Kumar

10. Benefits Of Enrolling In The One Year Mba Course For Professionals
Author: Krutika Sharma

11. 7 Reasons Why You Should Do A Digital Marketing Course
Author: Yogesh Sashi

12. How Sports Help Children To Be In Good Health?
Author: zoomlanguage

13. How To Make The First Day Of The School Of Your Child A Fun?
Author: zoomlanguage

14. How To Find Free Scholarships
Author: Student FinTech

15. Instant Reply Student Loans
Author: Student FinTech

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