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Being in the computer training industry, your question hit home as it
is something that I face regularly. Whenever a business is looking at
expenses, they have to consider the Return on Investment involved. In
today's tight economy, one of the easiest expenses to cut is training.
However, studies show that training is one of the best investments a
company can make.
A study buy The American Society for Training and Development found
that between 1996 and 1998, of the 575 publicly traded firms that
invested an average of $680 per employee in training improved
stockholder return by 6 percentage points. They also found that firms
in the top quarter of the study group that invested an average of
$1,595 per employee in training had 24 percent higher gross profit
margins and 218 percent higher income per employee than firms in the
bottom quarter that invested $128 per employee.
While these numbers are impressive, each organization needs to
determine the value training provides from their standpoint. Along
with this decision, the decision on whether to outsource training or
develop a training program in house, computer or web based training
versus instructor led training. There are several great resources
available to help an organization determine the value of training:
http://www.fastrak-consulting.co.uk/tactix/Features/tngroi/tngroi01.htm
Very nice article that covers several aspects of ROI in regards to
training.
http://www.astd.org/CMS/templates/index.html?template_id=1&articleid=21222
Worksheet to help an organization analyze ROI
http://www.astd.org/virtual_community/comm_evaluation/reading.html
Collection of articles on evaluating and analyzing ROI
The actual study results are only available to members of the ATSD,
but are referenced here:
http://portland.bizjournals.com/portland/stories/2002/06/03/focus5.html
I hope I have been able to answer your questions regarding the
benefits and ROI of training. If you need any additional
clarification, please let me know.
Regards,
-THV
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