ERIC Number: ED415384
Record Type: Non-Journal
Publication Date: 1997-Jun
Reference Count: N/A
Return on Investment: A Cost-Effectiveness Measure for the Texas' Workforce System.
Norris, Davy N.; King, Christopher T.
Texas is developing a return-on-investment (ROI) measure to assess the cost-effectiveness of work force programs. Emphasis is on issues related to conducting cross-program ROI analysis at the level of the Local Workforce Development Board (LWDB) in career or one-stop centers. To make the most appropriate and effective use of ROI, the following must be determined: how the measure is to be calculated; which benefits and costs can and will be accounted for; how they are to be measured; from which perspective the measure will be calculated; and what time period will be covered. A study of the use of ROI with Job Training Partnership Act (JTPA) adult and youth training programs identified five benefits: simplicity of interpretation; low cost of measurement; usefulness as a local marketing tool; ability to improve communications with private industry councils; and ability to best allocate resources. Five limitations were also found: lack of control group for determining net impact of training services; lack of a consistent methodology for comparing returns across local providers; non-JTPA services for which ROI models assume credit; nonmonetary benefits that were not accounted for; and limited availability of data. Key issues in conducting cross-program ROI analysis of Texas' work force development programs at the LWDB level are as follows: purpose, perspective, net or gross measurement, within- or cross-program, benefit measurement, cost measurement, and timing of measurement. Steps have been recommended for implementing an ROI measure. (YLB)
Descriptors: Adult Education, Comparative Analysis, Cost Effectiveness, Employment Programs, Employment Services, Evaluation Criteria, Evaluation Methods, Expenditure per Student, Investment, Job Training, Labor Force Development, Outcomes of Education, Postsecondary Education, Program Costs, Program Effectiveness, Program Evaluation, Secondary Education, State Programs, Statewide Planning, Vocational Education
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Texas State Council on Workforce and Economic Competitiveness, Austin.
Authoring Institution: Texas Univ., Austin. Center for the Study of Human Resources.
Identifiers - Location: Texas