Still Kirkpatrick's model for measuring the value of Professional Training by the ROI is in discussion. But is there empirical Research that shows the ROI is applied as an useful financial value indicator in corporations. Are there any alternative financial value indicators of Professional Training that have been successfully applied in corporations and what are requirements to adapt those from a corporate perspective?
Partly yes, ROI may be an effective technique in terms of measuring the benefits provided these are quantifiable . But ROI is not always advisable . The reason is there are many intervening variables which are responsible for the training outcome . Some qualitative techniques may be worth exploring .
In my opinion... The issue is not the ROI. The issue we need to focus on is how to quantify the benefits from training so that it is reflected in ROI. The performance of the firm in the market is determined by the financial performance. The ultimate measure of performance is ROI and Cashflows.
Can we make a simple attempt to observe ROI or any other relevant measure/ratio in line with the quantity of training? For example, how much are we spending on training, how much time employees are spending on training, or any way to see the quantum of training imparted in organization. If we can study above two things, financial measure and quantity of training, then i believe we can reach to some conclusions..
A simple measure is Net Present Value for evaluating the profitability using the two variables - spending and benefits. You can also compute the Internal Rate of return - that is the rate of return based on the spending in training.
http://goo.gl/22sD3L
I agree with the comments made by Mohammed R Ahmed and Jimmie Lenz.
In the question I see certainty and uncertainty. The certainty, is the cost of training, the uncertainty is in the performance of professional training. For example, employees who participate in a professional training should improve their skills, and these should be reflected in a greater intellectual performance. ROI, could be a good indicator, if we include in the numerator employee performance in the post training (comparing it to performance pre-training). The question is how we measure the performance of the employee? Through indicators that measure the efficiency of intellectual capital?
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