Getting to grips with returns on investment in training

This book is about the returns on investment (ROI) in training. Its aim is to introduce some practical examples for enterprises or organisations wanting to find out whether the money they have spent or intend to spend on training is worth it. It also provides strategies for researchers who would like to undertake research in this particular area.

The book begins by examining what is meant by 'returns on investment' (any investment) and then focusses on what is meant by 'returns on investment in training'. It borrows from the work of specific researchers and human resource consultants who have come up with systematic models for undertaking this type of evaluation, and presents these models in a simple and easy to understand format. Some of these models for analysing ROI and ROI in training have been around for a long time. However, the principles they demonstrate are still very relevant today. They have been included in this book because they are easy to understand and to use.

In addition, the book also describes some step by step methods for calculating costs and benefits, and simple explanations of the various concepts that underpin calculations of a figure for 'return on investment in training'. Arriving at meaningful calculations of these returns, however, may not be as straightforward as it seems, and readers wanting to use these techniques for their own enterprises are also encouraged to seek advice from accountants or other financial experts.

Finally, the book provides an annotated bibliography derived from the Vocational Education and Training Research Database (VOCED). This bibliography is for readers who would like to do some further reading about the topic, and for those who would like to explore different techniques or approaches to calculating 'returns on investment in training'.