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Muse HR: How to calculate Training Return On investment (ROI)?

Training ROI can be described as a measureable increase in skills, greater annual revenue, or simply the number of trained employees. Because when it comes to training, return on investment may mean different things to different people in different circumstances.

As an organisation, you can calculate the training ROI using the below simple formula:

Cost of Training

-------------------------- X 100

Value of Benefits

Examples of value of benefits include:

1. Reduced turnover

2. Increased productivity

3. Increased engagement

4. Reduced rehiring cost

5. Reduced retraining cost

6. Increased quality and yield

7. Increased sales

8. Increased customers

9. Increased revenue

10. Increased satisfaction

Ultimately, to quantify the ROI, each value of benefits index must be converted in dollar value. Organisations are required to make some assumptions along with the overall training objectives.

To learn more about Training Needs Assessment and ROI, email inquires to:


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