News

Issue No. 5 - April/June 2002

How to Realise Return on Training Investment

Recent research on the returns on investment (ROI) in training in Australia has shown that across a range of sectors, training investments can yield very high levels of returns for firms. The research also highlighted a number of important factors about ROI to training.

Since few Australian firms carry out systematic evaluations of their training and even fewer attempt to calculate the returns to their investments, little has been known about training effectiveness here.

Researchers examining case studies of individual firms found that returns on particular training programs can be very high. The rates of return depend neither on firm size nor industry, but on the nature of the training program and its relevance to the firm’s business needs.

Training investments ROI does not always relate to labour productivity or profitability, the usual variables that researchers in this area have been concerned to measure. It may come as higher levels of value—added a...

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