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Strategic Training Investment


Organizations invest in professional training and development to further the growth of their team members but also to continuously improve the organization and achieve the results required for success. The organization must realize a return on their investment and a focus on results must be an integral part of any training initiative.

The return on investment for training can be calculated in a number of different ways depending on the nature of the training and of the organization. In business, return on investment is a measure of monetary benefit. With respect to training, return on investment is the extent to which the benefits of the training exceed the costs of delivery. Delivery costs may include curriculum development, marketing, materials and staff time to name a few. Benefits may be measured by increased productivity, reduced errors or reduced turnover and should be aligned with the strategic priorities of the organization.

Regardless of how the training benefit is quantified, it is important that the benefits can be measured. It allows for evaluation of the training program to determine whether or not it was effective and supports further investment in training.

When considering a training solution for your business, consider the following:

  1. Is training the right solution? – A needs assessment will help you identify what the gap is that requires attention and help you determine if it can be bridged through training or if a different action is required such as more active performance management or a redesign of the process
  2. How will this training improve the organization? – You should be able to identify how the organization will benefit from the outcomes of the training. For example if staff is being sent on software training the benefits will be improved efficiency and reduced errors. For softer skills such as leadership and communication, this will be more difficult but it is equally as important to identify what these benefits look like
  3. How will I be able to measure the improvement? – In order to calculate the return on your investment you need to be able to quantify the outcomes and you need to define what that measure is before you begin. A baseline measurement is essential if you are looking for an improvement over existing results (you can’t tell if you improved if you don’t know where you started from)

Whether selecting from already developed training programs or having a custom training solution designed, answering these questions will help you ensure that your investment is strategic, can be evaluated and results can be communicated.

For more information on MNP’s customized training approach, please contact your local MNP Consultant.