Computing the Return on Investment (ROI) of Training

Computing the Return on Investment of Training Return on investment (ROI) is
determined by the following:

• Determine the total cost of training (e.g., training development cost, resources
cost, salaries of instructors, and participants).
• Determine the total value of the benefits achieved by the training (e.g., increased
production, lower waste).
• Determine the net benefit by subtracting the cost from the benefits.
• Determine the percentage of benefits over cost by dividing the cost into the
net benefits.
• Multiply the result by 100 to restate the result as a percentage.

Total Dollar Benefits – Cost of Training = Net Benefits
(Net Benefits / Costs) × 100 = ROI of Training

Tags
Sharam Kohan
Sharam Kohan

Sharam Kohan is an organizational leadership professional with experience spanning employment law, human resources, and public service. He is currently an LL.M. degree candidate at UC Berkeley School of Law and previously served on Alameda County’s Human Relations Commission, advancing equity-focused community initiatives. He holds an Employment Law specialization from Temple University School of Law and is SHRM-certified.

Sharam is also a writer whose work explores the intersection of law and philosophy, including Judgment, a Priori Itself and Sartre’s Conception of Freedom. He comments on organizational dynamics and social issues, and supports Bay Area community organizations through philanthropy and volunteer service.

Articles: 223

Related Posts