University of Minnesota - UMN Executive Leadership Insights
How to Measure Training Results
Book

How to Measure Training Results

A Practical Guide to Tracking the Six Key Indicators

Jack J. Phillips and Ron D. Stone
McGraw-Hill, 2002
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Editorial Rating

7

Qualities

  • Comprehensive
  • Innovative
  • Well Structured

Recommendation

Authors Jack J. Phillips and Ron Drew Stone have created an easy-to-understand method for measuring the real benefits of training. They outline a process you can use not only to understand the real impact of your training programs, but also to explain the benefits to top management in terms of actual dollars. Their guide takes you step-by-step through six levels of evaluation, from the early planning stages through implementation, right up to an impact study you can use on an ongoing basis to manage training evaluation. getAbstract thinks this guide offers very useful information for training managers. It provides concrete, step-by-step formulas and practical examples on how to set training goals, evaluate training at each level, convert training data to a compelling ROI model and measure the real benefits of your training programs.

Summary

Measuring Training Benefits and ROI

When human resource professionals measure and report the real dollar benefits of training, they help upper level executives understand and support their programs. Good evaluation tells you which training efforts work best and what you should improve, drop or replace. To measure your training program’s return on investment (ROI), collect six types of data and rank them according to how compellingly they demonstrate your training programs’ effectiveness. “Level one” data covers participants’ reactions to their training and are usually collected in so-called “smiley sheets.” “Level two” data reflects what participants learned. An indication of whether or not they apply the learning to their work forms “level three” data. The measured impact of learning on the organization’s effectiveness and bottom line is “level four” data. Creating an ROI measurement is “level five.” “Level six” data is made up of collected intangible training benefits.

Many companies base business decisions on ROI. To derive ROI, calculate net training benefits, divide them by the training cost and multiply the result by 100 for a percentage. For example, an ROI ...

About the Authors

Jack J. Phillips, Ph.D. is a training and performance measurement consultant. Ron Drew Stone directs the measurement and accountability practice at the Jack Phillips Center for Research.

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