Training evaluation and Return on investment (ROI)

In the modern industry, companies are investing significant resources like money and time on TND to ensure sustainable growth. Therefore, it is essential to post-evaluate the success rate of the training and development program. ROI helps to assess the financial impact of the training and development programs on the organization. Additionally, the outcome will help to determine the effectiveness of the upcoming training programs.

The Kirkpatrick Model of Training Evaluation



Kirpatrick’s Four level training evaluation model is a framework used to measure the effectiveness of the training programs. The model was developed by Dr. Donald Kirkpatrick in 1959. This model consists of four levels of evaluation.

01. Reaction –

๐Ÿ‘‰This section evaluates the learner’s responses and reactions to the training. Evolution can be done through post-training questionnaires or surveys.

02. Learning –

๐Ÿ‘‰This stage evaluates whether the learners have acquired the expected knowledge and skills. When designing training, HRM has set specific objectives to be achieved from the training. Effective training will enable employees to learn and fulfil those objectives. Evaluation can be done through the assessments before and after the training.

03. Behaviour –

๐Ÿ‘‰This section ensures whether the learners have changed their behaviour patterns with the impact of the training.  A successful training program will lead to positive behavioural changes in learners.

04. Impact

๐Ÿ‘‰In the final stage and explores how effectively training has contributed to achieving company goals. The impact can be measured through the KPIs (Key performance indicators). An effective training program will increase productivity, customer satisfaction, quality and production output while decreasing employee turnover, defect rates and customer complaints.


The Phillip’s Model of Training Evaluation



In the late 1980s, Dr. Jack Phillips introduced Phillip’s Model of Training Evaluation by adding the 5th model as a Return On Investment(ROI) to Kirpatrick’s training evaluation model. The newly added level helps HRM and management assess the financial benefits of the training programs in comparison to their cost.

 

Return on Investment

ROI primarily focuses on the benefit gained by the organization rather than individual employees. The calculation formula is as follows:

Net benefits may arise from factors such as increased productivity, improved quality and higher employee retention. However, HRM should ensure these benefits are direct results of the training. An accurate ROI assessment helps HRM and the management to make accurate decisions on future training investments.


References

Erik V V. (2025) 3 Ways to Measure Training ROI + Useful Tips : AIHR. Available at https://www.aihr.com/blog/training-roi/ [Accessed: 25 March 2025 ]

How to Measure and Prove ROI in Training & Development : acron. Available at https://acorn.works/blog/roi-in-training  [Accessed: 25 March 2025 ]



Comments

  1. This explanation is great! You have clearly explained how training evaluation and ROI work. The Kirkpatrick and Phillips models give us some fantastic ways to evaluate training success. I like how you evaluate the costs of training as well as the results. This makes it easier to understand the evaluation process. well done dear

    ReplyDelete
    Replies
    1. Thank you for your attention on this article. HRM can determine the impact of a training program through an effective evaluation process, which helps improve the effectiveness of future training initiatives. ROI highlights the cost benefits to the organization and can be used to justify training investments to top management.

      Delete
  2. Dear Thivon,
    You have clearly visualize two training evaluating methods Kirkpatrick and Phillips models. HRM and management can make more informed decisions about future training investments with the aid of a precise ROI assessment. Great article!


    ReplyDelete
    Replies
    1. Thank you for your comment. Kirkpatrick and Phillips are great structured frameworks which can be used to assess the effectiveness of training programs. With accurate ROI evaluations, organizations can make more informed decisions about future training investments, ensuring that resources are used efficiently.

      Delete
  3. Your overview of the Kirkpatrick and Phillips models provides a clear and practical understanding of how training effectiveness can be systematically evaluated. The emphasis on ROI as a decision-making tool for future training investments is especially valuable in today’s resource-conscious environment.

    Well done. Your structured approach makes a strong contribution to the field of HRM and organizational learning.

    ReplyDelete
    Replies
    1. Thank you for your comment. Kirkpatrick and Phillips models clarifies how training effectiveness can be evaluated systematically. As you pointed out, focusing on ROI is crucial in today’s competitive environment, where resources need to be used wisely.

      Delete

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