Calculate the ROI of your training courses: 3 simple methods

‍

Investing in employee training is essential to improve their skills and the overall performance of the company. But how do you prove that this investment is profitable? In this article, discover three methods for calculating the return on investment (ROI) of your training courses, as well as five key indicators to measure their impact.

Why measure the ROI of your training courses?

The courses represent a significant investment for the company, both in financial terms and in terms of time. Measuring ROI makes it possible to prove that these expenses are not simply a cost, but a real strategic driver for growth.

For example, sales training that leads to an increase in 15% of sales per customer shows a direct impact on turnover. Measuring this impact makes it possible to justify the allocated budget and to demonstrate that training contributes directly to business goals.

Transforming training into a strategic investment

Calculating ROI makes it possible to transform a simple expense into a strategic investment. By quantifying the benefits of training, you can prove that it improves productivity, reduces costs (such as workplace accidents), or increases sales. It helps you to make informed decisions on the training courses to be prioritized to maximize their impact.

consultancy : Set up pre- and post-training evaluations to compare results and connect progress to your business goals.

3 Methods to calculate the ROI of your training

1. The Kirkpatrick Model: A Four-Step Assessment

The Kirkpatrick model is a reference in the evaluation of training courses. It proposes a gradual approach, starting from immediate reactions from participants to the concrete impact on company performance. It's a bit like planting a seed and following each stage of its growth, from germination to flowering.

• Level 1: Reaction — 💬 Measure participant satisfaction right after the training. This is the equivalent of checking if the “seed” has been planted in fertile soil. Did participants find the training relevant and engaging?
• Level 2: Apprenticeship — 📘 Evaluate the knowledge acquired. Here you check to see if the “seed” has taken root. Have employees assimilated the new skills or knowledge?
• Level 3: Behaviour — 🚀 Analyze how skills are applied in daily work. This corresponds to the growth of the plant: are employees putting into practice what they have learned?
• Level 4: Results — 📈 Measure the impact of training on key performance indicators. It's flowering: you see the concrete fruits of training, such as increased sales, improved productivity, or fewer errors.

Practical example : Training in sales techniques, which leads to a 15% increase in sales in three months. By applying the Kirkpatrick model, you can prove that this increase is related to training and not to other external factors.

2. The Phillips Model: Calculating Financial ROI

The Phillips model goes further than Kirkpatrick by adding a direct economic dimension : the calculation of return on investment (ROI). It allows you to monetize results training, a language that financial managers fully understand. If Kirkpatrick tells you that training works, Phillips shows you At what point it is profitable.

• ROI formula :
• ROI (%) = (Net Gains/Total Costs) x 100
• Costs : Include all costs associated with the training, including the salaries of participants and the time they spend on the training.
• Net earnings : These are financial benefits, such as increased sales, reduced costs, or improved productivity. For example, if training reduces production errors, this can lead to substantial savings.

Practical example : If a sales training course costs €16,500 and generates €200,000 in additional profits, the ROI is 110%. This figure provides a solid argument for continuing to invest in training.

3. Return on expectations (ROE): a qualitative alternative

The Return on expectations (ROE) is ideal for training whose results are not directly quantifiable. It focuses on qualitative indicators, such as employee engagement, customer satisfaction, or team motivation. Imagine that your company invests in stress management training to reduce turnover: here, it's not the money saved that counts the most, but the wellness And the loyalty collaborators.

• When should ROE be used? If your training goals focus on more human aspects, such as corporate culture, the improvement of interpersonal skills, or the reduction in turnover, ROE is a more relevant tool than financial ROI.

Practical example : After training in conflict management, the work climate improves, turnover decreases by 10%, and team morale increases, strengthening cohesion and long-term effectiveness.

How do you choose the right method to measure the ROI of your training courses?

The choice between KING (Return on Investment) and ROE (Back to Expectations) depends on the goals you want to achieve with your training.

• The ROI is ideal if you need to justify the investment in financial terms. It is perfect for demonstrating concrete monetary results such as increasing sales, improving productivity, or reducing costs. Financial departments are particularly sensitive to this approach, as it translates profits into figures.
• The ROE, on the other hand, is more suitable for measuring intangible benefits. If your training is aimed at strengthening the corporate culture, improve the employee satisfaction or develop interpersonal skills, ROE makes it possible to capture these qualitative aspects that financial figures cannot always reflect.

Practical advice : For an overview, it may be interesting to combining the two approaches. For example, leadership training can both reduce turnover (financial impact) and increase team engagement (non-financial impact). Using both methods will allow you to justify the value of the training more fully.

Conclusion: ensure the regular follow-up of your training

So that your courses remain one strategic investment rather than a simple expense, it is essential to prove their impact on a regular basis. By adopting the right valuation method — whether it's the KING for financial results or the ROE for qualitative aspects — and using key indicators, you will be able to adjust your programs and demonstrate their effectiveness over time.

consultancy : Don't limit yourself to a final evaluation. Set up regular follow-ups throughout the training process. This will allow you to make real-time adjustments and to optimize the impact of your training courses even before they are finished.

By integrating these ongoing evaluations, you are strengthening the sustainability of investments in training, while maintaining the commitment of decision makers and continuously improving your learning strategies.

‍

‍