Abstract
In a more competitive business world, companies are always looking for ways to boost employee productivity and increase profits. Corporate training is a common and often large investment in that effort. But without a clear way to measure its impact, the true value of these programs remains uncertain. This project addresses the need to measure training’s return by moving beyond anecdotal feedback and providing a quantitative assessment of how training affects organizational performance. The study finds that a well-designed training ROI method is not just a tool for accountability but a critical way to align human capital with strategy and make better-informed decisions. This research explores established training-evaluation frameworks, tracing the shift from Kirkpatrick’s Four Levels to the Phillips ROI Methodology. While Kirkpatrick’s model is useful for assessing reaction, learning, behavior, and results, it often misses the financial data executives need. By adding a fifth level, the Phillips model enables a clear calculation of monetary return by systematically isolating the financial benefits that come from training. This project will demonstrate how to collect and analyze data step by step, from identifying training effects to converting those effects into monetary terms. To show the program's value clearly, the process looks at both measurable outcomes—like fewer errors or higher sales—and less tangible benefits—such as improved employee morale and greater customer satisfaction. Ultimately, this project will demonstrate the strong link between Strategic Human Resource Development (SHRD) and effective measurement of training ROI. Within the SHRD framework, learning and development are treated as strategic assets rather than costs. By accurately measuring training ROI, organizations can confirm the impact of their learning initiatives, identify areas for improvement, and ensure resources are invested in efforts that directly support keybusiness goals. Using this data-driven approach, HR leaders can demonstrate to the C-suite the true value of their work, shifting training from an operational expense to a vital part of long-term competitive advantage and business success. This study therefore confirms training ROI as a key strategic tool for modern organizations and offers a clear guide to understanding and applying it. Keywords: Training, ROI, Measuring, Productivity, Investment, Strategic Human Resource Development (SHRD).
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