Return on Investment of Employee Training.

Posted on: June 20 2018, By : Priyanka jadhav
 Return On Investment of employee training
Return on Investment (ROI) is a measure of the monetary Benefits obtained by an oraganisation over a specified time period in return for a given investment in a training programme. Looking at it another way, ROI is the extent to which the benefits of training exceed the costs. It’s not unreasonable for organisations investing in the training and development of their employees to expect to see some kind of Return on Investment (ROI).  It’s important for employers to know they’re getting a good return on their investment. And as costs rise and the pressure to up skill increases, measuring the effectiveness of training will be more important than ever. Most of the times employees need investment of training and development because the employee who receives the necessary training is more able to perform in their job. A training program allows our strength those skills that each employee needs to improve. A development program brings all employees to a higher level so they all have similar skills and knowledge.
In now days the ROI is important because the business concerned about returns on investment, “ROI is important, but it’s not the goal”. Impact of sustained change in employees behaviour and business result-is the goal. “No company wants to waste resources, but value all actions on ROI discounts the value of learning. It’s also important to remember training is not a ONE-AND-DONE proposition. On-going learning, re-enforcement of prior material and two-way feedback and communication provides employees with the skills and tools they need for continuous learning and growth on the job. The true return on investment might just be engaged, retained employees.
Return on investment (ROI) measures the Gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments.
In business, the purpose of the return on investment (ROI) metric is to measure, per period, rates of return on money invested in an economic entity in order to decide whether or not to undertake an investment. It is also used as an indicator to compare different investments within a portfolio. The investment with the largest ROI is usually prioritized, even though the spread of ROI over the time-period of an investment should also be taken into account. Recently, the concept has also been applied to scientific funding agencies
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