Evaluating Training – Capturing the Benefits Aspect of ROI
MAY 10, 2016
Cost reduction has become a priority, so measuring the effectiveness of human resources investments is an important and timely topic. Return on investment (ROI) is a quantification of the relation between the benefits of a program and its costs [benefit-cost ratio (BCR)]. When BCR is greater than one, the benefits outweigh the costs and the program is considered a success. The formula to calculate ROI in this way is: ROI (%) = Benefit – Cost x 100 Cost.