ROI Calculation On Behavioral Training.

Dear Friends,
I am currently working on an assignment where
I need to quantify the training output or the ROI from each training program that we conduct in our organizations.
I have made the checklist for the technical training programs and it is easy when your concern is only about the technical aspect of the job.
Now the problem is I need to suggest a process where the behavioral trainings outcome can be measured. Please suggest some idea regarding this and how should I quantify these things.
E.g. If the training is given on stress management then how can some one measure the success rate of the program? How can we quantify or find out the percentage of success?

Dear Mr Chinmaya Purohit,

I just waited for other learned members or trainers to give a reply. Since none came forward, I am giving the reply.

If you want to calculate ROI on the training programme then first you need to measure the loss of revenue because of gap in particular skill or knowledge. Aim the training programme to bridge this gap. Later you measure the change.

You have given example of training programme on stress management. For this programme you should do the following:

a) Measure the employee stress level
b) How excess stress is impacting the revenue of the company (like more job errors, customer dissatisfaction etc)
c) Include these details in the training programme and design the programme
d) Conduct the training programme. Calculate Total Training Charges (TTC) accrued for this training programme (TTC includes trainers charges + CTC of the participants for the number of days they attended the training + other charges like training material, LCD projector charges etc)
e) After 'x' weeks or months measure whether the participants have implemented the learning or not
f) Calculate the impact of the training. For this go back to point (b) above and check the change
g) Calculate revenue loss avoided because of the training

Final Comments: -

1. Implementation of the above method is very difficult though not impossible. For this you need to have lot of support from your management. Secondly, to capture the details you need to start generating sufficient records as well.

2.As per the Kirk Patrick model, we need to measure amount of knowledge that the trainees have absorbed. For this you need to conduct post-training test as well. How many companies will be ready to do that? Whenever I had approached for the training, I had tossed this idea of post-training test but even top-notch companies refused this proposal citing my suggestion as impractical.

3. However, I have worked in an MNC. They always conducted pre-training test and post-training test. They were very serious about the training.

Thanks,

Dinesh V Divekar



.

Dear Dinesh,

Thank you for your suggestions. Yes it is true that companies are serious about training when its comes to the technical aspect. The management wants to invest in that kind of training programs where the revenue part is directly concern. But when its comes to behavioral training, its always an option in my organization.

Thanks for your guidance and support.

Chinmaya Purohit
Executive
Training and Development


QUOTE=Dinesh Divekar;1552221]Dear Mr Chinmaya Purohit,

I just waited for other learned members or trainers to give a reply. Since none came forward, I am giving the reply.

If you want to calculate ROI on the training programme then first you need to measure the loss of revenue because of gap in particular skill or knowledge. Aim the training programme to bridge this gap. Later you measure the change.

You have given example of training programme on stress management. For this programme you should do the following:

a) Measure the employee stress level
b) How excess stress is impacting the revenue of the company (like more job errors, customer dissatisfaction etc)
c) Include these details in the training programme and design the programme
d) Conduct the training programme. Calculate Total Training Charges (TTC) accrued for this training programme (TTC includes trainers charges + CTC of the participants for the number of days they attended the training + other charges like training material, LCD projector charges etc)
e) After 'x' weeks or months measure whether the participants have implemented the learning or not
f) Calculate the impact of the training. For this go back to point (b) above and check the change
g) Calculate revenue loss avoided because of the training

Final Comments: -

1. Implementation of the above method is very difficult though not impossible. For this you need to have lot of support from your management. Secondly, to capture the details you need to start generating sufficient records as well.

2.As per the Kirk Patrick model, we need to measure amount of knowledge that the trainees have absorbed. For this you need to conduct post-training test as well. How many companies will be ready to do that? Whenever I had approached for the training, I had tossed this idea of post-training test but even top-notch companies refused this proposal citing my suggestion as impractical.

3. However, I have worked in an MNC. They always conducted pre-training test and post-training test. They were very serious about the training.

Thanks,

Dinesh V Divekar
Management Training Consultant
Bangalore - 560094
+91-99001-55394-

Beware of false knowledge; it is more dangerous than ignorance.[/QUOTE]

Dear Mr. Purohit,
I second to Mr. Dinesh. For your kind information, we trainers concentrate on the SUBJECT MATTER which is relevant to the TOPIC or AGENDA, on which we are requested to train the employees. But, my process is totally different because i go beyond the class room as i want to feel what is the "MAIN CAUSE" for any problem by doing ROOT ANALYSIS.
I believe in EDUCATING PEOPLE but we cant control "human brain". If that is possible then i can succeed everywhere.
Please do understand the HUMAN PSYCHOLOGY and correlate with PROFESSIONAL LIFE - PLACE OF WORK/ENVIRONMENT, ROLES & RESPONSIBILITIES, CO-WORKERS/SUB-ORDINATES/TEAM MEMBERS, SUPERIORS, COMPENSATION FACTORS, MOTIVATION LEVELS @ WORK PLACE, etc.
STRESS is not easy to define because, some times it is self created by NEGATIVE THOUGHTS even though if the environment is POSITIVE.
Have a nice day.
With profound regards