The ROI model was created by Jack and Patty Phillips to add a financial metric to Kirkpatrick's Four Levels of Evaluation. Follow a sample return on investment calculation and anticipate critiques from executive leaders.
- Jack Phillips developed the ROI model…to add a financial component to training evaluation.…He did this by building on…Donald Kirkpatrick's four-level model.…Phillips added level zero,…which represents program inputs,…like the number of people who attend the training,…as well as the costs.…He also added level five, which is return on investment,…or ROI, to identify the financial impact…of a training program and isolate it from other factors.…Here's an example.…Let's say you want to evaluate a sales training program…for a retail chain with 100 stores.…
We start by gathering some level zero input numbers.…We decide to run a pilot program of five stores.…It costs an average of $5,000 per store…to deliver the training,…so the total delivery cost is $25,000.…Delivery includes the trainer's time,…travel costs, participant wages, and training materials.…It costs $10,000 to develop the training,…but we can spread that over all 100 stores…for our ROI calculation.…So that's a total of $500 for the five pilot stores.…
If we add everything up,…
Check the exercise files for sample evaluation plans, reports, checklists, and worksheets that you can use to evaluate your own employee development program.
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- Common learning assessment models: Kirkpatrick, Phillips, Brinkerhoff, and alternatives
- Identifying expectations
- Collecting data
- Analyzing data
- Making recommendations