How to Measure ROI on Training and Coaching: Part 2
Part 2: Profits, Gains, Savings and Benefits
In the second of four articles, we will be exploring an approach to determining ROI on training and coaching. The approach explored here is in establishing the profits, savings and benefits of a training and/or coaching ‘intervention’.
Do you have something easily measurable? For example, some ‘soft skills’ training (like sales, negotiation or fundraising skills) may allow us to do a financial before and after gauge. Some time management interventions may allow us to see a specific gain or savings in time.
In order to demonstrate benefit, we collaborate with our partners to ask the ‘Three ROI Questions’. As well as the immediate post-course review (which tells us how well the course was received and participants’ learnings/applications), we aim for a longer-term/bigger picture review, seeking the perceived benefits for the individual, their team/colleagues and the organisation. This review also helps to remind people of the course material.
We have found that if you want to determine the perceived benefit of training and coaching… then ask the recipient! The three ROI Questions are:
- What has been the benefit to you personally as a result of attending the training?
- What has been the benefit to your team?
- What has been the benefit to the organisation?
Within the answers, we might then be looking for:
Individual Benefits (ASK)
- Attitude (e.g. confidence, motivation, wellbeing and satisfaction)
- Skills (e.g. ability to deliver, capability and productivity)
- Knowledge (e.g. learning and understanding)
Team Benefits (AIM)
- Achievement (e.g. innovation, ability to achieve more, efficiencies and ‘easier’)
- Interaction (e.g. improved communications, clarity and direction)
- Mood (e.g. motivation, improved team mood and reduced conflict/tensions)
Organisational Benefits (PIE)
- Performance (e.g. profits, savings, cost preventions, efficiencies and competency)
- Image (e.g. commitment to staff, attracting talent and enhanced company brand)
- Engagement (e.g. morale, satisfaction, low staff turnover and keeping knowledge)
In the next article, we will address a second method of evaluating ROI… ‘Cost Prevention’.
By Joe Cheal