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Hello Nidhi:
>If the organization provides training to its employees it does not mean that they are not successful employees.<
Of course, but why are so many trained employees not successful? Managers like to blame the employee and/or the training department.
>they may be doing very well in their current role but the organization wants to prepare them for future role & responsibility, training may also be aimed at further improving their current performance.<
That is all true but why do so many trained employees fail to become successful employees after training?
>Nonetheless my question is in terms of knowing the ROI on the training
given, considering the right talent is hired.<
If the right people are hired, i.e., all trainees become successful employees, would an ROI of training be needed?

From United States, Chelsea
Hi Nidhi,
The discussion was revolving round the ROI on training. Sorry for the belated reply.
There are few queries in this regard.
1. What type of training you give them and for what purpose.
2. What is the time frame you require for the employee to be more productive.
3. Do you measure the training effectiveness? ( Taking a recap after certain period of time say for period of 3 months ).
4. What is the percentage of the employees being shifted to other areas for which the training given is not useful.
5. Does this training a motivator ( for their improvement ).
Based on this we can arrive at a fairly good calculation of the ROI.
if you need more info please mail me .
Regards
Sreedharan


Hi Nidhi,
Could you please tell me what kind of industry/business you are in so that I can explain the ROI analysis method based on that?
Also a couple of examples of trainings that have been conducted.
Based on that we can work out the method to calculate ROI.
Waiting for your post; then we will take this forward.
thanks

From India, Mumbai
Dear ma'am,
I am a mgmt student undergoing my summer training....infact i'm doing my training in the same field of study as what you are a specailist in!!it is Best and Unique practises in T&D in the manufacturing and services sector.
Could you by any chance help me out regarding the same..
would be highly oliged if you could.
Regards
Rdhika

From India, Delhi
Hi Ramesh,
You are very correct. Once we set our objectives, half the work is done. Most of the trainings seldom have objectives. Infact there should be trainings for all the trainer on HOW TO SET OBJECTIVES. This is very crucial and important aspect.
Hope you all agree to this.
I have information on "Why Trainings Fail"
I can share if you are interested.
Regards
Dr. Shanti Rekha

From India, Mumbai
Hello,

You had these queries:-

1.What type of training you give them and for what purpose.

I am specifically discussing the soft skills tarinig here...being given in terms of leadership development etc

2. What is the time frame you require for the employee to be more productive.

Understanding that soft skills training can not do miracls over night..we are looking at a long period of develoment & consider the expenditure in trainings as an investemnt. Time frame may vary from 1-3 years.

3. Do you measure the training effectiveness? ( Taking a recap after certain period of time say for period of 3 months ).

We do that , but looking at the number of people undergoing training it does not appear to be a scalable approach, n then again how do we capture the effectiveness.

4. What is the percentage of the employees being shifted to other areas for which the training given is not useful.

We do not have such statistics....but majorly where the failure has been felt is in Team leaders handling their team & groups.

5. Does this training a motivator ( for their improvement ).

Did not get your question...plz explain.

I have tried to answer your queries to the best i could understand them. Anything else needed plz let me know. We are a software company with mojor polulac efrom IITs & top institutes.

Regards

Nidhi

From India, Gurgaon
Hello,
When I read your responses I have a feel that you are convinced that the training & development in the organization does not add any value, before you answer any of my posts request you to have an unbiased view to the query.
Training in my organization has not given us the fatal results you have talked of that trained employees not becoming successful etc..all I am asking is that how do we quantify it..considering the time talken in the process of devlopment of one perosn. Plz understand the soft skill development does not happen through one classroom training, it is an ongoing process & an ongoing investment.
I think the most obvious buisness plans in the orgainastion look for ROI..then why not training even if you are trying to suggest that the results shall speak from for the effectiveness of the training.
Regards
Nidhi

From India, Gurgaon
Dear Bob,

I do not agree with the premise that if the hiring is right and the employees are successful then we do not need to do an ROI on training. I think your understanding of the need for doing an ROI is not clear. We need to do an ROI in order to understand what impact does training have in enhancing the performance of the employees and contributes to the bottom line of the company.

Any training programme has to make some difference to the way of working of the employee, otherwise it is of no use. The difference that it makes obviously must impact the productivity of the employee and therefore the performance of the company. Having said that, it is also true that it is not possible to measure the ROI for all training programmes, nor is it economically feasible to do so. But those training programmes that should be studied for ROI(and that choice has to be made scientifically and judiciously) must be attended to and the study will give the training department valuable insight about how they are performing and what changes they need to make in order to be more effective and justify their existence.

thanks

MM

From India, Mumbai
Hello MM:

>I do not agree with the premise that if the hiring is right and the employees are successful then we do not need to do an ROI on training.<

You may be correct. However, if every new hire becomes successful after training, then executives may well stop asking for an ROI before training.

>I think your understanding of the need for doing an ROI is not clear. We need to do an ROI in order to understand what impact does training have in enhancing the performance of the employees and contributes to the bottom line of the company.<

Yes, I know.

>Any training programme has to make some difference to the way of working of the employee, otherwise it is of no use. The difference that it makes obviously must impact the productivity of the employee and therefore the performance of the company.<

I agree, but what if all trainees are successful after training?

>Having said that, it is also true that it is not possible to measure the ROI for all training programmes, nor is it economically feasible to do so.<

Perhaps.

>But those training programmes that should be studied for ROI(and that choice has to be made scientifically and judiciously) must be attended to and the study will give the training department valuable insight about how they are performing and what changes they need to make in order to be more effective and justify their existence.<

What ff they are always successful?

From United States, Chelsea
Hi Bob,

Thanks for your reply. Before I answer the questions raised by you, I wanted to know if you have ever done an ROI on training.

Now, for your questions: You seem to be stuck on two points; 1) that if all employees are successful after training then why do ROI? 2) If all training programs are successful then why do ROI?

Answers:

1) I think it is quit Utopian to think that all employees will be successful after training. Even if it were so then the ROI will let us know how much difference has the training made in that success. E.g. if an employee was producing X in Y hrs and now has started producing Z, it is worthwhile to study how much of Z-X has happened because of training.

2) All training programs being a 100% successful is Utopian again. You do not seem to accept the fact that things can go wrong or deviate from planned output for very many factors not always under your control.

Also, ROI is not about whether the training is successful or not; that is a relative term and what you might term as successful may not be the same as my definition. ROI is about what difference the training has made in fiscal terms, even negative, and what changes, modifications, improvements we can make.

Hope this helps in your understanding of ROI and remove some of the biases against it.

regards

MM

From India, Mumbai
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