Measuring return on investment and risk in training – a business training evaluation model for managers and leaders

Abstract

Abstract: Organisations face productivity and efficiency challenges brought on by global pressure. To cope with the challenges, they seek to develop and enhance their human capital as a source of sustainable competitive advantage. Evidence suggests that less than 10% of what is learned on training courses is applied effectively to enhance performance and business results. Research purpose: This abstract research critically examined existing training evaluation models to propose a new model. Motivation for the study: Smart investment in scarce and critical skills development by means of training is expected to enhance human capital; however, the challenge lies with the uncertainty in whether the return on these investments are measured and whether training risks are managed. Research design, approach and method: Theoretical, abstract research was conducted to understand existing measurement and evaluation models of training with regard to costs, benefits and risks. Main findings: This conceptual paper resulted in a new business model to measure training return on investment and risks. The proposed model adapted and built on the Kirkpatrick-– Phillips training evaluation model, adding a sixth, risk evaluation step and specifying measurement factors for each step..