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ERIC Number: ED462610
Record Type: Non-Journal
Publication Date: 2001
Pages: 14
Abstractor: N/A
Reference Count: N/A
ISBN: ISBN-0-87397-775-0
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 ROI are inhibited in situations when there is no employee incentive to apply learning on the job; outdated, irrelevant, and inappropriate training; and no complementary training for middle and senior managers.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)
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:; Web site: For full text:
Publication Type: Information Analyses
Education Level: N/A
Audience: Policymakers; Practitioners
Language: English
Sponsor: N/A
Authoring Institution: National Centre for Vocational Education Research, Leabrook (Australia).
Identifiers - Location: Australia