A White Paper

RETURN ON TRAINING INVESTMENT

ROTI

POWER HR FORUM

MESSAGE FROM HONORARY SECREATRY

Evaluation of Training has always been an important concern in our member

organizations as training is used by them as a method to develop their human
resource, build their competence as per dynamic business environment for
sustainable development and they are spending gregariously on this. Huge
expenditures are one part for justifying the training during evaluation process but
most important ones are measuring the learning achieved through training,
application of those learnings at workplace and how actually they are impacting
the business outcomes. Ultimately all organizations are spending so much for
achieving the later results only and to evaluate if their training practices are
achieving the desired results, they have been looking for some credible available
model for training evaluation.
To facilitate the needs of our Human Resource function in our member
organizations and helping them to evolve as HR Business Partners, Power HR
Forum has come out with a white paper on Return On Training Evaluation ROTI,
based on Phillips training evaluation model. This Model illustrated step by step
how training process need to be designed, what factors need to be considered
while deciding training objectives at different levels, how to do training evaluation
at different levels.
We really hope this white paper, Return On Training Investment will help our HR
fraternity to carry out their training initiatives in a more impactful manner with
more holistic approach.

Subhasis Ghosh
Executive Director (HR), NTPC &
Honorary Secretary Power HR Forum

Training Evaluation: A Framework

Contents
1.

Introduction ............................................................................................................................. 1

2.

Rationale to Measure ROTI (Return On Training Investment) ................................................ 1

3.

Stakeholders in the ROTI ......................................................................................................... 2

4.

Levels of Evaluation ................................................................................................................. 2

5.

Evaluation Process ................................................................................................................... 3

Step 1: Develop Training Programme Objectives ................................................................... 4
Step 2: Develop Evaluation Plan ............................................................................................. 6
Step 3: Data Collection .......................................................................................................... 9
Step 4: Data Analysis ............................................................................................................. 9

6.

The Outcome of Study ........................................................................................................... 11

7.

Undertaking a Training Evaluation Project. 12

Case I: Training Evaluation is taken as an Afterthought...... 12
Case II: Training Evaluation as a Planned Initiative.. 13

Annexure I: Sample Feedback Form I & II14

Annexure II: Test of Learning17
Annexure III: Programme Cost Structure.20

Return On Training Investment-ROTI : A Framework

Training Evaluation A Framework

1. Introduction
Capability and therefore Human Resource is aunique source of abundant advantage for any
organization. O rganizations are using training as one of the tools forcapability
enhancement. Providing appropriate training has become the strategy of the best
companies to get highest quality output from the employees. It has now become an
undisputed effective business tool and is linked the business outcomes.
Worldwide, training and performance improvement programmes have been reported
ashigh as3.6% of an organizations payroll, 1.3% of revenues and 5.9% of profit (as per ASTD
2013 research report).
Aptly, we shall use the term ROTI (Return On Training Investment) here for our framework
on training evaluation.

2. Rationale to Measure ROTI (Return On Training Investment)

The large investment and the need to demonstrateits values, are two of the primary drivers
placing an emphasis on the evaluation of training programmes. In the past, with
manufacturing industry in predominant, effectiveness of training could be easily measured
by production output. Not so much now a days, where training covers domain like
management and development of organizations, teams, individuals and information. And
measuring value of training is difficult in case of these softer issues. In addition to these
trends, following issues are driving the current need to measure the results of training and
performance improvement programmes:
1. To build the credibility of the training function, training managers and training
processes;
2. To fulfill clients (those funding the training programmes) requests for evaluation data to
be sure of the appropriateness of investment;
3. To justify the training budget and competing for scarce organizational resources
4. To evaluate the training method used and the use of time for trainer and employees.
5. To provide evidence to management/stakeholders on success of training programmes.
6. To identify areas for improvement in total cycle of training process.

Return On Training Investment-ROTI : A Framework

3. Stakeholders in the ROTI

As we see above, all of the stakeholders in the training process have different needs and
they need to be prioritized before one goes for training evaluation. Following stakeholders
can be associated as per the importance of their needs and requirements:
1.
2.
3.
4.
5.
6.
7.

Training function/HR function

HR Head
Participants (past/present/future)
Reporting Officers
Internal Clients (making investment in training programmes)
Finance Function
Business Operations/Line Functions

4. Levels of Evaluation
Developing a credible and comprehensive evaluation process is much like putting together
the pieces of a puzzle. The first step of the puzzle is the evaluation framework. This
framework defines the levels at which training prorammes are to be evaluated and how
data is to be captured. The following framework is based on the work of Donald L.
Kirpatrick, with an addition of fifth level by Jack J. Phillips.
Table 1: Training Evaluation Framework
Level

Measurement Category

What does it measures?

- Participants reaction to training programmes,
- Satisfaction with learning experience, contents, perceived
value of programme, and services like ambience

Reactions and Satisfaction

Learning

- Extent to which participants improve knowledge, increase

skills and acquire new behavioral changes

Application and
implementation

- Specific application and implementation of the learning at

work place

Business Impact

- Outcomes with variables such as output, quality, time and

cost as a result of application of learning

ROTI

- Compares the monetary benefits of the business impact to

the costs of the programme.

Develop
Training
Programme
Objectives

Develop
Evaluation
Plan

STEP 1, 2 Evaluation
Planning

3
Level 5: ROTI

Level 4:
Business Impact

Level 3:
Application

Collect data
at workplace
Tangible
- Intangible

Isolate the
effects of
training
alone

Convert
Business Impact
Data to
monetary value

STEP 4 Data Analysis

Fig 1. Training Evaluation Process

Level 2: Learning

Level1: Reaction &

Satisfaction

Collect data
in the class
room

STEP 3 Data Collection

Based on the above evaluations levels in Table I, evaluation process is defined graphically as shown in Figure 1:

5. Evaluation Process

Programme
Cost

Calculate
ROTI

Return On Training Investment-ROTI : A Framework

Return On Training Investment-ROTI : A Framework

Step 1: Develop Training Programme Objectives

The first step in training evaluation process involves defining the training programme objectives
i.e. what intended outcome the programme aimed at. Then the evaluation task become
checking whether these outcomes are achieved or not. Programme objectives range from a
basic level of achieving certain feedback ratings, to increased knowledge level to on-job
application.
Table-2 in the subsequent pages indicate details of different levels of training objectives
corresponding to different degree of complexity.
Table 2: Programme Objectives at Various Levels

Level
1) Reaction &
Satisfaction

What does it Typical Objectives

measures
Participants
reaction and
satisfaction to
the
programme

The participants to rate the programme at 8/10 (say). It may

include the following:
1. Participants feedback on:
Faculty delivery
Course/reference material provided
Interaction with faculty
Administrative arrangements
Ambience
Training coordination
Fulfillment of learning objectives
Relevance to workplace requirement
2. Participants subjective responses on how they plan to put
into practice the learning gained at their workplace

2) Learning

Knowledge,
skills,
behavioral
changes

The main objective is to check if participants learning are at a

higher level than before attending the training programme.
These can be specified by:
Difference between pre and post training test scores
Simulation/role play performance
Case Study analysis
Keeping certain cut-off marks in post test

Return On Training Investment-ROTI : A Framework

Level
3) Application &
Implementation

4) Business Impact

5) ROTI

What does it Typical Objectives

measures
On job
application of
knowledge /
skills from
training
programme

At the workplace, the participants are expected to implement

the knowledge and skills learnt during the training
programme to perform their jobs more effectively, as given
below:

Outcomes of
application of
learning at
workplace

Because of the above mentioned on the job application of

the knowledge and skills acquired, following business
outcomes must be achieved.

Monetary
benefits

Write a business proposal requiring no correction

Preparing a presentation and deliver to audience
Shaft alignment of a pump, unaided and within timeframe
List requirements of spare parts before turbine is
overhauled so that it is completed within stipulated time
Time/activity management with least procrastination
Demonstrate empathy with co-workers
Give feedback/coach juniors following correct procedures
Take up and complete TQM/benchmarking project in
stipulated time
Take up and complete HR Audit project for specific HR
domain

The given below illustrative examples are linked directly to

application objectives, as above.
Reduced time and rework in preparing the documents
Decisions are quicker and objectively made as a result of
focused presentation
Reduced dependency on others as a result of skills acquired
resulting in manpower and time reduction
Reduced time between overhauls and less numbers of
surprises, hampering progress of work
Timely completion of task assigned
Improved interpersonal relations in team resulting into
more volume of work output
Compares the monetary benefits accrued because of the
training programme to the cost of programme. The monetary
benefit is because of time saved, less number of manpower
and input resources and increased production/sales.
For any training programme, its ROTI should be within the
range of 130 % to 300 %.

Return On Training Investment-ROTI : A Framework

Step 2: Develop Evaluation Plan

After determining the objectives the next step is to develop the evaluation plan. This step
ensures that objectives determined for each evaluation level are addressed appropriately, as
given in Table 2. Before developing the evaluation plan, the levels to be evaluated need to be
determined for any programme. This is because as the level of evaluation increases, so does it
difficulty and expense. It takes time and resources to do a comprehensive ROTI study, so its not
feasible to do it for every training programme. Table 3 suggests the target coverage for the
evaluation to be done at every level along with ease and their usefulness.
Table 3: Evaluation Difficulty and Intended Coverage

Levels

Purpose

Level 1 Reaction
Satisfaction
Level 2 Learning

Ease

Usefulness

& Relatively
easy

Least
data

Target
Coverage
useful 100% (say)
80% (say)

Level 3 Application

20% (say)

Level 4 Business Impact

5% (say)

Level 5 ROTI

Most difficult

Most useful

1% (say)

The sub steps for this particular step are given below:
1)
2)

Deciding which training programme is to be evaluated and at what level;

Developing training objectives at the desired level; if the evaluation is for higher level,
then training objectives at lower level need not be developed.
3) Developing numeric target and baseline wherever applicable and appropriate to the
level of evaluation and nature of training programme; target for satisfaction level (L1),
learning (L2), ROTI (L5) are easier to specify numerically whereas for Level 3 and Level
4, it is difficult.
4) Establishing data collection method including formats, templates, who would collect,
time limit and how. This is detailed Table 4:
Pre-programme communication of the evaluation plan to programme participants help in
reaffirming the importance of the programme and will encourage participants to help in data
collection at the appropriate time for evaluation process.

Return On Training Investment-ROTI : A Framework

Table 4: Data Collection Plan

Levels

Reaction

Learning

Data Collection Method

Timing of Data
Collection

Responsibility
of Data
Collection
It requires a one page document having Immediately at the Training
Likert scale for different measures on end of programme, Manager /
which feedback is sought. Two different within the classroom Coordinator
formats are given for illustration in
Annexure I.
Word of Caution: Data Collection at this level is very easy therefore training
managers get tempted to include as many factor as possible. But evaluation at this
level does not provide us any concrete information. Therefore we need to be
cautioned while choosing the factors to be measured and only focus on:- Factors
which are actionable and which can aid us to take a business decision.
This level requires instruments using which Pre-Post Test: Once
Training
knowledge/skill gained by participants at beginning and
Manager /
after training can be assessed. Details of other at end of
Coordinator
various instruments are shared in training programme,
Annexure II for more details.
within the classroom

Application & Asking immediate stakeholders of training

Implementation participants as to how much is the
application.
Data Source are*:
i. Reporting Officer
ii.Participant
iii. Internal Customers
iv. External Customers
v. Subordinates
* Based on priority maximum three
stakeholders need to be considered.
Data collection Method:
Interviews using different mediums like
telephonic, electronic, online, pen &
paper formats

Only Post Test:

Immediately at the
end of programme,
within the classroom
Feedback should
collected within 3-6
months of
programme
conductance; outside
the classroom, at
workplace

Training
Manager/
Coordinator

Return On Training Investment-ROTI : A Framework

Table 4: Data Collection Plan (contd.)

Levels

Data Collection Method

Timing of Data
Collection

Business
Impact

Asking seniors about the outcome of the Before end of the

implementation of new knowledge/skills year of conductance
acquired in training programme.
of programme

Responsibility
of Data
Collection
Training
Manager /
Coordinator

Data Sources:
-Functional Heads
-Sectional Heads
-Direct Reporting Officer (in case of
senior level employees)

ROTI

Questions to be asked are- how business

objectives as decided earlier have resulted
in:
-% reduction in mandays / time saved
-% increase in customer satisfaction
-Reduction in input resources as
compared to previous year
-Achieving higher targeted sales and
production goals as compared to last
year.
-% reduction in customer complaints due
to improved quality.
1. Isolating the effects of training Before end of the Training
programme
year of conductance Manager /
2. Gathering business impact data of programme
Coordinator
and convert it to monetary value
3. Capturing programme costs
Detailed ROTI process explained in Step 4
and Progrmme Cost Structure in
Annexure III

Return On Training Investment-ROTI : A Framework

Step 3: Data Collection

This stage of ROTI methodology involves data collection in two time frames:
i)

In the classroom, immediate after the programme:

Data is collected during the programme with intent to measure participants reaction,
satisfaction as well as learning. Reaction data can also be useful in predicting application
as well as forecasting impact data and ROTI. This time frame is applicable for level 1 and
2 of evaluation only.

ii)

Outside the classroom, at the workplace:

After the programme, information is gathered regarding the application of the skills and
knowledge as well as the impact the programme has had on the organizations/business.
Both hard and soft data are collected using a variety of methods. This time frame is
applicable for level 3, 4 and 5 of evaluation.

Step 4: Data Analysis

This pertains mainly to the fifth level of evaluation in ROTI. The benefits of the programme are
converted into monetary value at this stage. But before that, contribution made by the training
programme need to be isolated from the effects of the factors other than training. Following
sub steps are involved in this stage of data analysis:
i)

Isolate the effects of the training programme:

Performance factors measured should be directly related to the programme as many
factors influence the performance of employees other than structured training
programme. Some common strategies commonly used to address this issue are stated
as:

ii)

Participants/stakeholders estimate the amount of improvement caused, that

could be ascribed to training programme alone. This may be 40% 100%.Encouragement from seniors, reading from books or online sources,
learning from peers, are some of the other contributing factors.
Identify the other factors making impact on performance and estimate or
calculate the impact by them, leaving the remaining unexplained improvement
attributed to the programme.

Convert business impact data to monetary value:

To calculate ROTI, convert business impact data into monetary values and compare
those values to programme costs. Depending upon the type of data involved in showing

Return On Training Investment-ROTI : A Framework

business impact, following suggested strategies could be used to con vert data into
monetary values:
Output data, like additional sales can be converted to profit contribution
Cost of quality measure, such as customer complaint, can be calculated and
reported as standard value.
Employee time saved can be converted to wages saved and benefits, etc.
The programme benefit data is represented in annualized form which means the
analysis could have been for two months period and while reporting, it has to be
converted to 12 months by extrapolation.
iii)

Capture Programme Costs: Calculate all the direct and indirect costs involved in
the programme. A detailed list of various parameters are at Annexure III.

iv)

Calculate the Return on Investment (ROTI): ROTI can be calculated by

comparing the net programme benefits and costs. The ratio is usually expressed
as a percent:
ROTI (%) = (Net Programme Benefits / Programme Costs) x 100
Where net programme benefits are programme benefits minus programme
costs.

v)

Identify intangible measures: Identifying and converting data to monetary value

is more challenging in case soft data or intangible benefits. Intangible benefits
include items such as:
Improved public image
Increased job satisfaction
Increased organizational commitment
Reduced stress
Improved teamwork
Improved customer service
Reduced customer response time
Enhanced technology leadership

10

Return On Training Investment-ROTI : A Framework

6. The outcome of Study

Reporting the results of a comprehensive measurement and evaluation is the last step in the
ROTI study and should be systematic and well planned. Table 5 provides a framework of
contents of reporting outcome of ROTI study:

Table 5: Suggested Framework for Evaluation Report

Sl

Suggested Contents of Evaluation Report

Participating Stakeholder, we are aiming at

Stakeholders need and expectations from training programmes

3
4

Level of evaluation decided/desired and the rationale behind for

specific training programme
Tangible benefits

Intangible benefits

Lessons learned

Limitations of present study

11

Page no

Undertaking a Training Evaluation Project

12

Sec 3

Determine the
Stakeholders
interested in
Training
Evaluation

Sec 2

Annexure III,
Sec A

Estimate the
cost of study
& get
approval
(Reaction/Learning/
Application/Business
Impact/ROTI)

Set up the realistic

objectives of the
programme
Data
Collection

Data
Analysis

Fig 2. Training Evaluation for programmes already conducted

Highlight desired
depth & breadth
of study to take
care of
staeholders
concern

Reporting
the outcome
of Evaluation
Project

Case I Training Evaluation is taken up as an Afterthought (after the specific training programme has been conducted)

7.

Return On Training Investment-ROTI : A Framework

Stakeholder
Identification

13

Establish
level of
evaluation

Setting Objectives:
-Reaction
-Learning
-Application
-Business Impact
-ROTI
Data
collection

Fig 3. Training Evaluation for programmes to be conducted

Capturing
Stakeholders
concern(s)

Programme Design
Data
Analysis

Case II Training Evaluation is taken up, as a planned initiative and thought of before the programme is conceived

Reporting
the
outcome of
evaluation

Return On Training Investment-ROTI : A Framework

Return On Training Investment-ROTI : A Framework

Annexure I
A. Sample Feedback Form I (used by NTPC)
PROGRAM TITLE

Assessor Building for NTPC Business Excellence Model

PROGRAM DURATION

Aug 5-8, 2014

Organizer

PMI

VENUE

SCOPE Complex, MCM Hall, New Delhi

Program coordinator

DMR PANDA

Please provide feedback on following parameters on a scale of 1-10, where 1 Not Satisfied and in
the increasing order of satisfaction 10- Highly Satisfied.
1. Please rate the extent to which Overall Program Objectives were achieved
Programme Objective:
Describe the internal assessment model for business excellence
State the coverage of nine criteria of excellence
Explain the process of assessment of submitted document from participating
stations
Evaluate and score the application document from any NTPC power station
Describe the process of generating feedback report for the particular station based
on the review of application document and plant visit
S
No
1.

Not Satisfied
Satisfied
1
2
3

Highly
4

10

Overall Program Objectives

2. Please rate the extent to which the following aspects of the program are met as per your expectation
S No

1.
2.
3.
4.

Dimensions

Not Satisfied
Satisfied
1
2
3

Content & Depth of Coverage

Program Duration
Relevance to your role
Program Coordinated

14

Highly
4

10

Return On Training Investment-ROTI : A Framework

3. Please rate the extent to which different faculties met your expectations in terms of subject
knowledge, structure and delivery
S No

Session Topic

Faculty Name

Not Satisfied
1

Internal BE Model

Highly

Satisfied
4 5 6 7

10

C V Subrahmanyam

4. Please rate the extent to which following Administrative Aspects are met as per your expectation
S No

Dimensions

Not Satisfied
Satisfied
1
2
3

Highly
4

10

1. Hospitality Arrangements
2. Overall Administrative
Arrangements
3. In house residential arrangements

5. Kindly mention where and how you shall apply the learning at workplace?

6. Kindly give your comments regarding program and suggestions for improvement of the Program.

Date ------------------------------

Signature________________
Name ___________________
Emp No.________________

15

Return On Training Investment-ROTI : A Framework

B. Sample Feedback Form II (used by Power HR Forum)

PROGRAM TITLE
PROGRAM DURATION
VENUE

CSR & SD
September 29, 2014
Power HR Forum, PMI NOIDA

Please provide feedback on following parameters.

1.

Please rate the extent to which Overall Program Objectives were achieved
Moderate (less than (<40%)
Partially (41-60%)
Fully (61-80%)
Up to - the mark (81 100%)

2.

The instructors knowledge on the subject was

Average (Less than 40%)
Good (41 60%)
Very Good (61 80%)
Excellent (81-100%)

3. How interesting, effective and appropriate were the case studies and examples
Moderate (less than 40%)
Relevant (41-60%)
Greater extent (61-80%)
Up to the mark (81 100%)
4. Please rate the extent to which the program will help in your official capacity.
Little (less than 40%)
Moderate (41-60%)
Greater extent (61-80%)
Fully (81 100%)
5. Please rate how this programme was coordinated?
Average (less than 40%)
Good (41-60%)
Very good (61-80%)
Excellent (81 100%)
(Not necessary to mention your name and other details)

Signature---------------------------Name -------------------------------Place of Posting-------------------

16

Return On Training Investment-ROTI : A Framework

Annexure-II

Test of Learning
The aim of the Learning Evaluation (Level-2) is to check if the learning of the participants
has reached to some desired level after attending the training programme. There are two
options in this regard:
1) Pre-post test
2) Post test
Further, each of these categories may include following methods:
a) MCQ (multiple choice questions)
b) True/False type
c) Subjective assessment
d) Demonstration through role play / working on models
e) Analysis of case studies
f) Simulation
The job of the training manager at this stage is to follow the learning objectives finalized
during the step 1. Then based on those objectives, determine the mode he/she going to use
for assessing the change in learning achieved during training programme as expla ined
below:
A) Pre-Post Training Test and Post Test:
Pre-Post Test is preferred where participant has some background knowledge of the
training programme contents or participants are already working in the same domain
and the intent of training programme is to acquire advanced skills. Then, training
manager can make out clearly improvement in the skill levels of employees.
Table 1: Comparison of Test Methods
Parameters
Pre-Post Test
Post Test
Level of skill to be achieved
Degree of learning Certain
level
of
enhancement
proficiency has to be
achieved; say 70 % at
end of training.
Criticality of learning
High
Lower
Location of proficiency
Within the classroom
Within the classroom
Extra time and cost
More
Less
Seriousness/objectivity/engagement High
Lower
of participants

17

Return On Training Investment-ROTI : A Framework

B) Choosing among Objective/Subjective/Case Studies/Role Plays

1. Objective (MCQs/True-False):
These mode of test should be used when the group size is large (say) more than 15,
time available is less, criticality of the skills to be acquired is not that important or
specific and focus is upon acquiring knowledge.
2. Subjective Questions:
This mode is preferred when the population size is restricted a certain level of
knowledge/skill have to be demonstrated. In case,where the criticality of the
knowledge/skill to be acquired is more important than population size does not
matter.
3. Simulations:
This mode of testing is preferred when the skills acquired during the training
programme are of critical importance and have to be demonstrated by every
participant to perform his job at workplace.
4. Case Studies:
This approach has to be used when we want the participants to learn how to
implement the learning from the training programmes to the real life situations.
5. Role Plays:
This approach is preferred in behavioral trainings where we want participants to act
on specific situations and learn, feel and experience it to gain more clarity. This
approach should be preferred when availability of time is not a restriction.
Table 2: Usage of Different Instruments for evaluating Learning
Parameters Objective
Subjective
Simulations Case
Role Plays
Studies
Participant
More than Less than 15 Less than 15 Less than Less than
Group
15
15
15
Testing Time Least
Lesser
More
More
Less
Evaluation
Least
More
More
More
More
Time
Automation Highest
Not possible Not possible Not
Not
Level
possible
possible
Criticality of Moderate
Moderate
Highest
High
High
skills
acquired

18

Return On Training Investment-ROTI : A Framework

Usually objective test is most widely used which is a good compromise between
outcome achieved and input required.
(C) How to decide the Number and Difficulty Level of Questions in Pre-Post/Post Training
Tests
To get the more accurate picture of the knowledge/skills acquired during the training
programme, inclination is on to ask more number questions, for a clearer assessment.
But this has to be restricted to limit ourselves and be more focused. When we are going
for objective type of questions, one rule of thumb is to ask 16 questions for a day of
training programme or 4 questions per session. Say a training programme is scheduled
for 3 days, then the number of questions come down to 45. In case of subjective type of
questions 6 questions per day should be asked. A combination of objective as well
subjective can also be used.
While deciding the level of questions to be asked in the Pre-Post/Post Training Tests, the
objectives of the training programme as pre-decided need to be considered and
accordingly decided.

19

Return On Training Investment-ROTI : A Framework

Annexure III

Programme Cost Structure

This stage involves calculating the programme costs incurred and outcomes of the
training programme. Programme cost can be divided into two heads i.e. Direct Cost and
Indirect Cost.
A) Programme Cost:
i)

Direct costs are expenses an organization can easily specify for an object or
services acquired. Companies describe these as expenses where one gets what
one pays. An organization can have its own list of direct cost depending on the
resources available with them. A list specifying indirect costs incurred in a
training programme is given below:1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

ii)

Facilitator Fees (if outsourced)

Boarding and Lodging Fees for Faculty
Faulty travel fees
Refreshment expenses for participants
Course Material
Stationary Items
Training Venue
Travelling expenses of participants
Loss of productivity or costs of backfilling positions during training
which is at least equal to CTC of employee
Cost of Evaluation Study (employee cost and time, travel time, etc.)

Indirect cost involves costs which are spread out for usage for different
purposes and cannot be calculated directly for the product/service acquired. A
list specifying indirect costs incurred in a training programme is given below:1.
2.
3.

Salaries of Training Department personnel involved

Infrastructure (training venue, audio-visual aids)
Communication elements, air conditioning, building up keep, etc.

20

Return On Training Investment-ROTI : A Framework

B) Training Benefits: To calculate the programme benefits, business impact created

due to training programme like reduction in manpower, enhanced customer
satisfaction, improved quality needs to be converted into the monetary value for
the same financial year. Depending upon the type of data involved in showing
business impact, following suggested strategies could be used to convert data into
monetary values:
a. Output data, like additional sales can be converted to profit contribution
b. Cost of quality measure, such as customer complaint, can be calculated and
reported as standard value.
c. Employee time saved can be converted to wages and benefits, etc.

21