Measuring the Return on Investment in Training

3C Associates, the Learning and Communications Company has developed a method of measuring the financial return of a companyís investment in training.

Calculating the value of training of staff has been an elusive goal for every organisation faced with the challenge of justifying the cost and the Return on Investment (ROI) of educating their workforce. The HATS programme developed by 3C identifies the measurements and metrics necessary to calculate the real value of training and the benefit that can be delivered back to the business.

Hedda Bird, Managing Director of 3C explains ìfinding practical approaches to measuring ROI on training is fast becoming the critical ëmust doí for those responsible for people development. We have spent the last twelve months researching realistic methods to value the impact of training on an organisation. The outcome is the HATS programme; a process for valuing people through the use of Human AsseT Statements. We have particularly focused on how intangible benefits of training can be quantified and presented at Board level.î

One of the key ingredients of the HATS programme is the ëLine of Sightí approach that takes Financial Performance as a primary objective and in turn examines Organisational Goals, Business Goals, Work Processes and finally identifies the Training Needs necessary to support the Business Plan.

Hedda Bird continues ìFor as long as ROI calculations focus on cost savings it will be very hard for Training Departments to win the support they need to add value. Using the HATS approach Training Departments can start to focus on the Returns they will make from investing in improving customer satisfaction, increasing retention and adding genuine value.î