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ERIC Number: ED415384
Record Type: Non-Journal
Publication Date: 1997-Jun
Pages: 13
Abstractor: N/A
Reference Count: N/A
ISBN: N/A
ISSN: 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)
Publication Type: Reports - Research
Education Level: N/A
Audience: N/A
Language: English
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