Can we accurately measure the ROI on Training and Development?

“If you can’t measure it, you can’t manage it.”- (Peter F. Drucker)

I was having a chat with a Sr. learning and development Executive at a leading financial services company that has a global presence. During our conversation, I asked the client whether they measure ROI on training investments.

The client executive mentioned that it is difficult to assess the impact or ROI on training.

While I was a bit surprised but I did agree to his point that it is not easy to assess ROI on training.

Here is the formula to calculate the ROI:

As we can see that it is simple formula then what is the big fuss about calculating ROI. The key issue is that the Net Program Benefits are slightly difficult to calculate. Let’s check the following scenarios:

 

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