4. Corporate have started investing in training
programs to enable their employees with the
required competencies to perform the job efficiently.
Infosys Limited has established the largest
corporate university at the Mysore Campus for
training and development.
1
2
5. “The world is going to be too tough and competitors too ingenious
as companies are shaken loose from traditional ways of conducting
business. Therefore, the old principles no longer work in the age of
Globalization” (Markovic, 2008)
According to Begel (2008) in the software development IT industry
“Employers recognize that students entering the workforce
directly from university training often do not have the complete
set of software development skills that they will need to be
productive”.
6. “Most companies have failed
the challenge of measuring
the overall benefits after
training”
7. “Estimate ROI on training programs
to measure the overall benefits and
help management in taking
appropriate steps: optimize resource
utilization and deciding on future
investments”
8. Understand the given need and analyze the gap
between the existing models
Propose a model that is best suitable to
address the need in hand and Justify it with
sample data collected from the field.
1
2
9. “Return on Investment (ROI) is a measurement process of
collecting and analyzing data before and after training
programs to determine the benefits of the investment of such
training within the corporation”
The most widely known are Donald Kirkpatrick’s model and Dr.
Jack Phillips models
Variety of Authors and Models
10. Did they like it?
Did they learn?
Did they use it?
Did it impact the
bottom line?
“Kirkpatrick Model
does not Address
the measurement
of ROI”
11. Did they like it?
Did they learn?
Did they use it?
Did it impact the
bottom line?
What is the return
on the invesment?
“Dr. Phillips Model
measures ROI at
one point of time”
12. “Measure net benefits through
an incremental perspective
overtime”
Then,
Incremental ROI comes into
scene
15. Input
Training Program
Infrastructure &
Human Resource
Investment
Data Source – Budget
Production
No. of Trainees
No. of Trainees
No. of Trainees
Exit
Performance
Revenue Generation
Risk Reduction
Return on
Expectation
Above Benchmark
Benchmark
Performance
Below Benchmark
Sitting on Bench
Risk Reduction
Performance
6 month period 12 month period evaluation
Evaluation of L1 & L2 Evaluation of L3 & L4
L5:ROIEvaluation
17. ROI Forms: This model involves the measure of ROI in four
different forms: 1) Performance, 2) Revenue Generation, 3)
Risk Reduction and 4) Return on Expectation
Performance
Revenue
Generation
Risk Reduction
Return on Expectation
18. Performance
The ROI form of Performance is percentage of employees
creating value within a firm in terms of productivity, quality,
cost and time after the process of competency building
through a corporate training program. In short, it is the number
of employees performing at the corporate benchmark.
Performance
19. Revenue
Generation
The ROI form in terms of revenue is the monetary value of
wealth created by the percentage of employees that are
performing well according to the corporate benchmark.
In short, it is the incremental revenue after training.
Revenue
Generation
20. Risk Reduction
The multiple impacts of Training Programs reach the clients,
which are more likely to be satisfied, repeat business and
develop loyalty to the firm. Hence, positive impacts reduce
significantly the risk of the business.
Risk
Reduction
21. Return on Expectation
The ROI form of ROE is aimed to determine the
correspondence between the Expected Results of corporate
training program by the Stakeholders and the Outcomes
provided by employees and supervisors.
Return on
expectation
24. 1) Employees are classified by Project Manager either as above benchmark,
benchmark or below benchmark performers according to their behavior and
results in production.
2) The first period of evaluation is 12 months after the completion of the training
program. The second period of evaluation is 24 months after undergoing
training.
3) It is assumed that “below benchmark performers” do not bring any benefit to
the company, since they are performing the equally as people without any
prior training Manager.
25.
26. 1. Profits made without training must be compared with profits generated after
training.
2. Revenue generation is only possible by benchmark and above benchmark Performers
3. Below benchmark performers do not bring revenue to the company since they are
not demonstrating better performance that an untrained worker. Hence, Poor
performers are equal to untrained employees and this they represent a cost based on
their annual salary.
4. Revenue earned by employees at various levels of performance. Assuming that the
earnings will vary depending on the level of performance of an employee.
27. Assessment of
current ROI in
Training
programs
Assessment of
ROI in Training
with Incremental
Perspective
30. Recap and Phase 1
Methodology
Phase 2 – Data Collection
ROI Calculation
Findings & Suggestions
Statistics
31. Input
Training Program
Infrastructure &
Human Resource
Investment
Data Source – Budget
Production
No. of Trainees
No. of Trainees
No. of Trainees
Exit
Performance
Revenue Generation
Risk Reduction
Return on
Expectation
Above Benchmark
Benchmark
Performance
Below Benchmark
Sitting on Bench
Risk Reduction
Performance
6 month period 12 month period evaluation
Evaluation of L1 & L2 Evaluation of L3 & L4
L5:ROIEvaluation
32. Input
Training Program
Infrastructure &
Human Resource
Investment
Data Source – Budget
Production
No. of Trainees
No. of Trainees
No. of Trainees
Exit
Performance
Outstanding Performers
Above Benchmark
Benchmark
6 month period 12 month period evaluation
Evaluation of L1 & L2 Evaluation of L3 & L4
Below Benchmark
34. • 6 Text Books on ROI (Kirkpatrick’s and Phillips)
• 7 research papers on ROILiterature
Survey
• Questionnaire review by Project Managers and Instep
Project Mentors
• Questionnaire sent to 15 Project Managers
Data
Collection
• Use of the ROI Model and Formulas
• Different forms to Measure ROI for different Stakeholders.
• Calculations are based on 2,500 trainees
Evaluating
results
38. Bassi, et al (1996) reported that 96% of companies he surveyed used some
form of the Kirkpatrick framework to evaluate training and development
programs. But, companies still short in their measurement efforts. In more
detail McMurrer et al. (2000) surveyed the American Society for Training and
Development Benchmarking Forum to determine what percentage each of
Kirkpatrick's four levels is used in organizations. He found that Level 1 usage is
95%, Level 2 usage is 37%, Level 3 usage is 13% and Level 4 usage is only a
roughly 3%.
Level 1: 95%
Level 2: 37%
Level 3: 13%
Level 4: 3%
Twitchell et al. (2000) performed a meta-
analysis of studies executed in the last 40
years. This research indicates ranges for the
use of Kirkpatrick's four levels including 86-
100% for Level 1, 71-90% for Level 2, 43-83%
for Level 3 and 21-49% for Level 4.
Level 1: 86-100%
Level 2: 71-90%
Level 3: 43-83%
Level 4: 21-49%
39. The incremental ROI of Performance change in percentage of employees performing at the
corporate benchmark in terms of productivity, quality, cost and time after training.
1) Performance Benchmark is decided by PM’s.
2) Based on the level of competency and performance.
3) Maximum time to become fully productive is four months.
43. The incremental Revenue ROI form is the monetary revenue change caused by employees
performing as an impact of the training program.
1) Different levels of performers earn singular revenues.
2) Different projects have singular earnings.
3) Below Benchmark performers earn $0 USD for the company
44. 1) Salary to Trainee
2) Salary to Educator
3) Infrastructure
4) Library
5) Computers
6) Software
7) Materials
8) Etc, etc.
Others
45. Cost $ USD Time basis
Salary $ 3,340 6 months
Others $ 400 6 months
*4 months $ 2,260 4 months
Total Cost $ 6,000 /Trainee 6 months
Total Cost $ 1,000 /Trainee 1 month
*Refers to the assumption that 4 months after training are required to reach
benchmark level of performance.
Source: Education and Research Budget 2008-2009.
Confidential
46. Source: DM’s and PM’s
Performance
level
Earning
Rate $USD
Daily
Earnings
Monthly
Earnings % People at
performance
level
Monthly Earnings
by performer
level
OP $ 27/Hr
8.5
Hrs
Day
= $ 230
22
Days
Month
$ 5,049 0 $ -
AB $ 23/Hr = $ 191 $ 4,208 8 $ 33,660
B $ 21/Hr = $ 179 $ 3,927 21 $ 82,467
BB $ - /Hr = $ - 0 71 $ -
Total Monthly Revenue
Generation by 100 trainees $ 116,127
Conf
ident
ial Confide
ntial
47. Source: DM’s and PM’s
Performance
level
Earning
Rate $USD
Daily
Earnings
Montly
Earnings % People at
performance
level
Montly Earnings
by performer
level
OP $ 27/Hr
8.5
Hrs
Day
= $ 230
22
Days
Month
$ 5,049 8 $ 40,392
AB $ 23/Hr = $ 191 $ 4,208 21 $ 88,358
B $ 21/Hr = $ 179 $ 3,927 55 $ 215,985
BB $ - /Hr = $ - 0 16 $ -
Total Monthly Revenue $ 344,735
Conf
ident
ial Confide
ntial
51. •The investment in Training have significant returns for the
company in performance and revenue.
•54% increase in the benchmark performance after training.
•The Revenue ROI of the company after Training is about
407%
•Training duration can be reduce for 8% of the workforce
resulting in early release to production.
52. Improve Quality of
intake
Review and Update Training
Content & Model
Assesment
Model
Course Structure (CS)
E-Learning
Intern Model
Strengthen soft skills
53. 1. Literature Survey:
A. 110 hrs of literature survey
B. 6 textbooks
C. 4 authors
D. 7 research papers
E. 6 web based content
2. Data collection
A. 7 Units
B. 15 Projects
C. Sample Space of 2,700 Software Engineers
D. Period of Data 2008-2009
54. Dr. Sundaresan Krishnan Iyer – E&R
Ms Meenakshi S – E&R
MsAnooja Mary Jacob – E&R
MiguelAngel Fernandez Delgado-MBAIntern
57. Low
customer
turnover
Customer
loyalty
Continuity in
relationship with
customer
High customer
satisfaction
Extensive
training
Employee satisfaction,
positive service attitude
Repeat emphasis on
customer loyalty and
retention
Higher
profit
margins
Broadened
job designsLowered turnover,
high service quality
Above average
wages
Intensified
selection effort
Train, empower frontline
personnel to control quality
Source: Heskett and Schlesinger
58. Source: Lovelock and Wirtz
1. Hire the
Right People
3. Motivate & Energize
Your People
2. Enable Your People
Be the preferred
employer & compete for
talent market share
Intensify the
selection process
Empower Frontline
Build high performance service
delivery teams
Extensive Training
Utilize the full range
of rewards
Service Excellence
& Productivity