Effectiveness of Training Initiatives: Measuring ROI

You wouldn’t send your kid off on a bike for the first time without training wheels, would you? Of course not. How about with an ill-designed helmet? Never.

Companies would be smart to think of training initiatives in the same light. Your new employees need to be equipped with the right tools to ensure they don’t fall down as they transition into their new role. Taking proper training measures is an investment in new staff members’ future development.

Presenting clear information regarding the ROI of training materials can considerably improve your pitch
Presenting clear information regarding the ROI of training materials can considerably improve your pitch.

Measuring Effectiveness of Training Initiatives
Being able to measure the effectiveness and ROI of the proposed training measures is crucial. Company executives will want to see how their investments will benefit the company in a concrete way. Here are some key tips for calculating, presenting, and creating an effective training proposal.

The benefits may seem crystal clear: invest now to benefit later. However, the process of acquiring a budget for these training initiatives is not always quite that easy. Trainers are often responsible for making a pitch to secure approval for properly sized budgets.

According to FastTrak Consulting, benefits of training must be measured in improved company performance. This is no easy task, and many companies circumvent it altogether. Instead of taking the time to measure these obscure benefits, businesses tend to focus on the happy test: a survey that maps out how employees feel about the training process. Was it efficient? Did you feel safe? Are you happy with your new knowledge?

While these questions are great for different reasons, they don’t accurately depict the relevant company benefits that would spur larger training investments. Here are two key ways to measure overall improvements in performance due to training initiatives.

  • Labour Savings: Training planners should first look to how production can be made more efficient. As a result of your training efforts, will employees put less effort into reaching current levels of production? These benefits can materialise in the form of reduced time spent on fixing tedious problems, faster access to relevant company products, or a reduction in duplicated efforts; essentially, by training employee X to do Y in this manner, they will spend less time on X, Y, Z tasks.
  • Increased Productivity: The key difference between labour savings and increased productivity lies in the additional work that can be completed due to training measures. When training initiatives teach new employees how to perform company tasks in a more efficient manner, they will then have more time to do more work. This can be a great way to measure benefits of training in a visual way.

Effectiveness of Training Initiatives

“A great way to save money is to find a provider with digital to print solutions.”

Tackling ROI Projections and Calculations
The most crucial aspect of this process is specifying the period you plan to track.

Your ROI is essentially the return your company has made over a period of time due to your training initiatives. When thinking about this, setting up a time period of three months may not accurately depict the effects of your training efforts. The most descriptive numbers will most likely choose a time span of around one to two years.

From there the calculation is simple: percentage of ROI = (benefits/costs) x 100. Plug in your numbers and work your magic.

Trainers should also keep cost efficiency of training materials in mind when presenting new training options. A great way to rack up the savings is to find a provider that offers digital to print solutions. Instead of overhauling your training materials every time there is an update, companies can quickly make changes online. These solutions also offer multi-platform distribution. Companies can release their training materials digitally, in print, or as a combination of both.

Training efforts can have great future effects when the right investments are made. Sometimes, it is up to training initiative creators to help business leaders see this, so make sure you are prepared with the relevant ROI and effectiveness statistics.


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