Total corporate training spending fell 11% in 2008.

(Corporate Learning Factbook, 2009, Bersin & Associates)

At the same time, 73% have expanded their offerings.

(ASTD 2009 State of the Industry Report)

Total corporate training spending fell 11% in 2008.

(Corporate Learning Factbook, 2009, Bersin & Associates)

Total corporate training spending fell 11% in 2008.

(Corporate Learning Factbook, 2009, Bersin & Associates)

The number of employees to learning professionals rose from 227 to 253. (ASTD 2009 State of the Industry Report)

At the same time, 73% have expanded their offerings.At the same time, 73% have expanded their offerings.

(ASTD 2009 State of the Industry Report)(ASTD 2009 State of the Industry Report)

Total corporate training spending fell 11% in 2008.

(Corporate Learning Factbook, 2009, Bersin & Associates)

Total corporate training spending fell 11% in 2008.

(Corporate Learning Factbook, 2009, Bersin & Associates)

In down

economies,

Training and

Marketing tend

to be the first to be

Can you answer the

““How much has How much has training helped training helped the bottom line the bottom line

this this month/quarter?”month/quarter?”

““How much has How much has training helped training helped the bottom line the bottom line

this this month/quarter?”month/quarter?”

question:

Only one out of ten

Learning Executives

measure the dollar

impact of training

on the business.

(source: CLO Magazine, 8/20/2009)

The Options

Increase Revenue

1

The Options

Decrease Expense

2

Increase Revenue

We know intuitively that training helps the bottom line.

how do you prove it with a

specific dollar amount?

What is the Goal of the Training?

The 6 Basic Training Goals

Increased

Production

The 6 Basic Training Goals

Increased

Production

Increased Customer Satisfacti

on

The 6 Basic Training Goals

Increased

Production

Increased Customer Satisfacti

on

Decreased Error Rate

The 6 Basic Training Goals

Increased

Production

Increased Customer Satisfacti

on

Decreased Error Rate

Decreased

Onboarding Time

The 6 Basic Training Goals

Increased

Production

Increased Customer Satisfacti

on

Decreased Error Rate

Decreased

Onboarding Time

Decreased

Turnover

The 6 Basic Training Goals

Increased

Production

Increased Customer Satisfacti

on

Decreased Error Rate

Decreased

Onboarding Time

Decreased

Turnover

Decreased Litigation/Clai

ms

Step Two

Isolate the Effects of Training

77%

Final ImpactAssuming

the program

is held

once per

month with

an average

of 8

employees… … each program yields $2,584 in additional revenue over the first six weeks.

… each program yields $2,584 in additional revenue over the first six weeks.

Profitassumesthatexpense

sremainrelativelyconstant.

Expenses are covered in a

later presentation.

From here you can calculate a Benefit-Cost Ratio and arrive at an ROI.