ROI in training: what is it, how to calculate it and why?
Posted: Mon Dec 23, 2024 8:54 am
Investing in education is the solution to many problems, including in companies. However, there is no point in allocating a large amount of money to this area and not knowing whether or not this work is generating returns for the organization. Find out in this article what ROI is, how to calculate it, and why you should adopt it in training and development to enhance your HR strategies.
What you will see in this article:
ROI in Training: what is it?
Why Invest in ROI in Training
How to Calculate ROI in Training
Carry out cost survey
Calculate Results
Think about results from the planning stage
ROI in Training: what is it?
Nobody likes to waste money, right? Especially entrepreneurs! In times of economic uncertainty, it is necessary to use resources wisely and monitor investments closely to know whether they are bringing the expected results or not. One of the tools used to do this is ROI.
In free translation, the so-called Return on Investment may seem like a c level executives mailing list word at first. However, this concept is already widely applied in areas such as marketing, helping professionals to justify the use of funds and to show that their work and the strategies adopted are producing positive results.
ROI is a mathematical formula that shows whether the results of an action are below, covering or exceeding the costs invested in it. This tool can be used in various processes, including corporate training . In this specific case, using this concept can bring several benefits to HR, helping in its decision-making.
Why Invest in ROI in Training
Before we show you how to do the calculation, let's make it clear how important it is to use this tool.
Corporate training, if well planned and applied, brings several results to the company, such as increased engagement and motivation, improved productivity and the development of subjective skills - which also impact the environment and quality of work.
However, some of these factors are not exactly easy to measure, not like a simple calculation to compare sales from one month to the next to see if there was growth. All of these elements help to increase the performance of employees and teams, consequently impacting the company's performance - the problem is translating this benefit into numbers to make it easier for management to understand the importance of this strategy.
What you will see in this article:
ROI in Training: what is it?
Why Invest in ROI in Training
How to Calculate ROI in Training
Carry out cost survey
Calculate Results
Think about results from the planning stage
ROI in Training: what is it?
Nobody likes to waste money, right? Especially entrepreneurs! In times of economic uncertainty, it is necessary to use resources wisely and monitor investments closely to know whether they are bringing the expected results or not. One of the tools used to do this is ROI.
In free translation, the so-called Return on Investment may seem like a c level executives mailing list word at first. However, this concept is already widely applied in areas such as marketing, helping professionals to justify the use of funds and to show that their work and the strategies adopted are producing positive results.
ROI is a mathematical formula that shows whether the results of an action are below, covering or exceeding the costs invested in it. This tool can be used in various processes, including corporate training . In this specific case, using this concept can bring several benefits to HR, helping in its decision-making.
Why Invest in ROI in Training
Before we show you how to do the calculation, let's make it clear how important it is to use this tool.
Corporate training, if well planned and applied, brings several results to the company, such as increased engagement and motivation, improved productivity and the development of subjective skills - which also impact the environment and quality of work.
However, some of these factors are not exactly easy to measure, not like a simple calculation to compare sales from one month to the next to see if there was growth. All of these elements help to increase the performance of employees and teams, consequently impacting the company's performance - the problem is translating this benefit into numbers to make it easier for management to understand the importance of this strategy.