Description: When expenses become an issue, training is often one of the first budget items to be cut. There have been a number of evaluation studies about rates of return from training interventions. Most results are based on interviewing participants about the value of the intervention and its effect on their productivity. This often results in quadruple digit return on investment indications. Decision makers who control the budget often view these kinds of results with skepticism. This study proposes a methodology to evaluate training interventions without asking participants their opinions. The process involves measuring learning through a series of pre-tests and post-tests and determining if scores on pre-tests can be used as predictors of future return on investment results. The study evaluates a series of return on investment scores using analysis of variance to determine the relationship between pre-tests and final return on investment results for each participant. Data is also collected and evaluated to determine if the financial results of the organization during the period of the training intervention could be correlated to the results of the training intervention. The results of the study suggest that the proposed methodology can be used to predict future return on investment from training interventions based on the use of pre-tests. These rates of return can be used as a method of selecting between competing training intervention proposals. It is a process that is easily understood by the key decision makers who control the allocation of financial resources. More importantly, it is a process that can maximize the value of each dollar spent on training.
Date: May 2008
Creator: Hiraoka, Calvin H.