Products September 1, 2004

Determining the Value of Training

January 21, 2003 (PLANSPONSOR.com) - Training managers seeking to prove the value of their programs may get some help from a new free online return on investment (ROI) calculator.
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The calculator, provided by the Addison, Illinois-based OneOnOne Computer Training, includes such variables as:

  • number of people trained
  • average learning time
  • hourly pay
  • costs of training
  • estimates of productivity improvement.

According to a OneOnOne announcement, the calculator can produce projections of profit, return on investment, and payback time.

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While trying to determine the projected value of a block of training, HR executives also need to consider the consequences of not providing the additional education, the company said. Specifically, OneOnOne officials said, companies should factor in:

  • employee hours wasted on trial and error learning
  • time stolen from co-workers for help on routine tasks
  • excessive vendor support calls with the meter running
  • opportunity cost of not exploiting work-saving features
  • competitive disadvantage when less efficient than others.

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