The ROI of training can be determined (if it indeed has one). There is a chain of evidence to be followed that goes beyond the acquisition of knowledge (although that makes a good starting point).
Presumably, the training results in the acquisition of knowledge and skill. Let's treat them separately for now.
The acquisition of a new skill means the trainees are able to do something they could not do before. Typically, skills are taught or developed when what the trainees are to do is known and specified in advance.
Knowledge has value with respect to performance only when it is applied in some way. Knowledge provides the capability or capacity for action. However, the precise nature of the application can't be specified in advance and so it is often the case that the performer must, at least in part, figure out what to do.
Both cases (skill and knowledge) tie eventually to the performer doing something in an on-the-job setting. That something, whatever it is, has direct and immediate effects. These effects might be felt in the form of changed information, transformed materials, or changes in other people. The direct and immediate effects of action also "ripple through" the structure of the larger situation or context in which the performance takes place, making themselves felt elsewhere. For example, a direct, immediate effect of a salesperson's proposal to a customer might be an order. That order is then booked and later shows up as an incremental increase in the organization's sales. It might also be used in some functional calculation such as orders-per-salesperson, etc. In any case, there are indirect and delayed effects of actions to be considered.
The chain of evidence of the ROI of training that I referred to earlier goes something like this:
Training --> Improved/Increased Skill/Knowledge --> New and Different
Actions --> Direct and Immediate Effects of Actions --> Indirect and
Delayed Effects of Actions.
The effects of actions, whether direct and immediate or indirect and delayed, are typically such that economic value can be assigned to them. This is what makes it possible to ascertain the ROI of training. The typical focal point for evaluating training (i.e., the acquisition of skill and/or knowledge) is only a starting point in the chain of evidence.
Posted by hotlavasoftware1
at 10:40 AM EDT
