ERIC Number: ED462610
Record Type: Non-Journal
Publication Date: 2001
Reference Count: N/A
Returns on Investment in Training. Research at a Glance.
National Centre for Vocational Education Research, Leabrook (Australia).
Recent Australian research provides a solid body of evidence that training investments can yield very high levels of returns for firms across a range of sectors. It highlights these important factors about returns on investment (ROI): ROI come in many forms; immediate ROI are highest when training is highly focused; measuring ROI is not always easy; and ROI can be enhanced by human resource policies. A positive association exists between firm profitability and quantity and quality of training offered. Evaluation methodologies include productivity studies, cost-benefit analysis, and measuring workers' reaction to and learning from training, and training's impact on workers' behavior. International productivity-based studies (Bartel 2000) show firms that introduced training over a long period of time performed better than firms that did not. Time series firm-level studies have been successfully applied in the manufacturing industry and service sector; matched plants studies have been successfully used in the manufacturing industry; and matched pairs studies are useful to assess ROI on "soft skills." Moy and McDonald (2000) have identified these factors that enhance ROI: technological change, innovative human resource policies and practices, and supervisory support and involvement. ROI are inhibited in situations when there is no employee incentive to apply learning on the job; outdated, irrelevant, and inappropriate training; and no complementary training for middle and senior managers. (YLB)
Descriptors: Adult Education, Corporate Education, Developed Nations, Educational Economics, Efficiency, Evaluation Methods, Foreign Countries, Human Resources, Industrial Training, Inplant Programs, Job Training, Labor Force Development, Management Development, Matched Groups, Outcomes of Education, Productivity, Program Effectiveness, Vocational Education
National Centre for Vocational Education Research, 252 Kensington Road, Leabrook, South Australia 5068, Australia (Cat no. 675: free). Tel: 08 8333 8400; Fax: 08 8331 9211; e-mail: firstname.lastname@example.org; Web site: http://www.ncver.edu.au. For full text: http://www.ncver.edu.au/research/core/cp0007aag.pdf.
Publication Type: Information Analyses
Education Level: N/A
Audience: Policymakers; Practitioners
Authoring Institution: National Centre for Vocational Education Research, Leabrook (Australia).
Identifiers - Location: Australia