• Gather data. Determine suitable performance indicators and come up with a collection plan.
• Isolate the effects of training.
Utilize Control Group. A control group arrangement can be utilized to separate training impact. Through this technique, one team receives training, while another; identical team does not receive training. The distinction in the performance of the two teams is associated to the training program.
Trend Lines. Trend lines are utilized to estimate the values of particular output variables if training had not been undertaken. The projection is correlated to the actual data after the training, and the distinction shows the estimate impact of training.
Participants Estimate. Supervisors of Participants Estimate. This approach relies on the premise that participants as well as their supervisors are capable of evaluating how much a performance improvement is coordinated to the training program.
Due to the fact that their actions have led the improvement, participants and their supervisors may obtain very precise input on the issue. They must know how much of the change was caused by means of implementing what they have mastered in the program.
• Convert Data to Monetary Values.
There are steps to convert data to monetary values and these are the following:
• Concentrate on a unit of improvement.
• Identify a value of each unit.
• Evaluate the change in performance data.
• Identify a yearly amount of change
• Estimate the yearly value of improvement
• Identify intangible benefits.
• Estimate Return on Investment of Training
• Tabulate Program Costs. Systematizing the costs composed of monitoring or enhancing all of the coordinated costs of the program targeted for the Return on Investment calculation.
The cost components that must be comprised are the following:
• Travel, meal costs and lodging for the participants.
• Employee benefit as well as the salaries of the participants who attend the training.
• Overhead and administrative costs of the training function which are distributed in some beneficial way