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Training Evaluation Metrics

Training is expensive, and it is an HR function that requires measuring and monitoring. Cost–benefit analysis and return-on-investment (ROI) analysis are commonly used to measure training results, as are various benchmarking approaches. Training results can be examined through cost–benefit analysis, which compares costs and benefits associated with training. Training is often expected to produce a return on investment (ROI). Too often, though, a particular training regimen is justified because someone liked it rather than on the basis of resource accountability. ROI simply divides the return produced because of the training by the cost (or investment) of the training. In addition to evaluating training internally, some organizations use benchmark measures to compare it with training done in other organizations. To do benchmarking, HR professionals gather data on training in their organization and compare them with data on training at other organizations in the same industry and in companies of a similar size.