Trainers are left to juggle these competing interests and to justify the company’s continued investment in training. However, trainers can create buy-in by demonstrating the value of training and positioning it as a crucial part of employees’ work, rather than a distraction from it.
Anecdotal success stories can help create a positive mindset about training, but return-on-investment (ROI) analysis backs up those stories with specific statistics that can justify the investment.
Training ROI
Training ROI can be measured by using the following formula:
(Monetary benefits – training costs) ÷ training costs x 100
Unlimited employee HR training—one low cost—no setup, no software to install. Find out why the Software & Information Industry Association voted TrainingToday the “Best Workforce Training Solution.” Go here for more information or to sign up.
Monetary benefits include labor savings, reduction in lost workdays and workers’ compensation costs, productivity increases, and lower turnover costs. Training costs include design and development of the training program, as well as expenses related to promotion and administration, delivery, materials, facilities, wages paid to trainees, and evaluation of the training program.
For example, say training on a new safety procedure results in a 10 percent drop in an organization’s accident rate, which translates to $200,000 in savings in terms of lost workdays, material and equipment damage, and workers’ compensation costs. For a $50,000 training program, the ROI is 300 percent ($200,000 – $50,000) ÷ $50,000 x 100. In other words, the company saved $3 for every $1 spent on training!
No time to prepare or deliver training? With the BLR®’s TrainingToday, your employees can start taking essential training courses the same day you sign up. Workers (and supervisors) train at their convenience, 24/7. We track, and you save with this turnkey solution. Yes, it really can be this simple. Learn more.
In tomorrow’s Advisor, we’ll give you tips on getting the most bang from your training buck, plus explore a comprehensive HR training resource library.