Week 3 Project

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Training Outcomes and Evaluation Training evaluation should include behavior, skill-based, and effective outcomes to determine the extent to which transfer occurred. (Reactions and cognitive measures do not help to measure the transfer.)

Training outcomes and evaluation measures are highly independent of each other. Assuming positive reactions lead to greater transfer may be incorrect. Research suggests that the relationships among the outcomes are of small scale.

There are three types of transfer:

Positive transfer—Learning occurs with positive changes in on-the-job behavior.

No transfer—Learning occurs without changes in on-the-job behavior.

Negative transfer—The on-the-job level of behavior is lower than the pre-training levels.

Learning, behavior, and results should be measured after sufficient time has elapsed to determine whether the training program has had an influence on these outcomes.

Choosing an Evaluation Design

Situations where no evaluation or a less rigorous design is appropriate are:

Managers or trainers are not willing to devote time.

Managers and trainees lack the expertise to evaluate.

Training is an investment from which little or no return is realized.

Detailed evaluation should be considered when:

The evaluation results change the program.

Training is continuing and affects many.

Training involves multiple classes and many trainees.

The cost justification for training is based on metrics.

The trainers and others have the expertise to evaluate.

The cost of training demonstrates that it works.

Sufficient time for conducting an evaluation exists.

Interest in measuring change from pre-training levels or in comparing two or more different programs exists.

Following are the steps to calculate the return on investment (ROI):

1. Identify the outcomes.

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2. Place a monetary value on the outcomes.

3. Determine the annual change in the outcomes.

4. Obtain the annual amount of benefits (multiply the change in the outcomes by the monetary value).

5. Determine the training costs.

6. Calculate the net benefit (subtract the training costs from benefits).

7. Calculate the ROI (divide net benefits by costs).

The ROI yields an estimate of the return expected for each dollar invested.

Formula of ROI Review the tabs to learn more.

Determining ROI Formula

Return on investment (ROI) is important to any investment. It can be measured by the accompanying cost-benefit examination. A cost-benefit examination finds the net economic

benefit by means of accounting approaches. The increased emphasis on determining return on investment is a result of wanting to know results.

Formula for ROI:

Percent ROI = [(Training Benefits – Training Costs) ÷ Training Costs] * 100

Determining Equation Elements

Calculating ROI

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Additional Materials

From your course textbook, Employee Training and Development, read the following chapters:

Program Design

Training Evaluation

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