Monday, August 6, 2012

Does Your Training ROI Actually Destroy Shareholder Value?

There is no doubt that the return on investment (ROI) of training is a controversial issue. There is no shortage of books, articles, blog posts, and Twitter chats filled with reasons why determining training ROI is essential and why it is a complete waste of time. For those who do not believe in training ROI, the argument goes something like this: “No one tried to determine the ROI of buying pencils or of email. We bought them because we know they are necessary. There is not ROI on that.” For those who believe in training ROI, the argument goes something like this: “While it is true we do not calculate the ROI of pencils, if an organization is going to spend $500,000 on leadership develop this year, we better have a positive expectation on that investment.”
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