ROI of Training Programs

Doing business today, comes with a number of challenges related to change and the operating environment. As such, training is both a profitable and effective undertaking. Like any investment, the R.O.I of training programs can influence the performance of any organization.

Economic volatility, market downturns and disruptive technology have created difficulties for most managers. The recent demise of the Stuttafords Group is testament to how training and adaptability are necessary at all levels of operation. This begs the question, how do you optimize your training efforts ?


The training process begins with a critical analysis of operations. Managers must identify different activities in which training is required. This can be achieved through a comprehensive needs assessment exercise. In so doing, the following questions should be answered:

  • Why do we need training?
  • What type of training do we need?
  • When do we need training?
  • Which department / job / individuals require training?
  • Who will conduct the training?
  • How should the training be delivered?

Training Needs Analysis Best Practices

To increase the R.O.I of training programs, you must start off with a workforce profile. This is gives an overview of current knowledge and skills. Without a clear understanding of the current situation, it may be difficult to enjoy the advantages of a training program.

Compliance requirements are also a major issue to keep up to date with. Top on the list is skills development or lack of it. While there is a lot of focus on requisite compliance, when it comes to skills development, the benefit in value that accrues to organizations and staff through training is undeniable.

When you have comprehensively assessed the need on the ground, it follows that you make a determination of all available resources and those lacking, as far as facilitating the training process is concerned.


After the initial needs assessment, you are now equipped with the necessary information to settle on a training stream. It’s time to engage a training company which will ensure that your needs are sufficiently met.

While some managers may worry about the prospect of paging through listings to find the perfect fit, there are some pointers that you can use to identify the perfect training company.

  1. Proven Track Record

    Many companies may claim to offer employee training, but developing a reputation of positive results when it comes to R.O.I of training programs is no easy feat. By finding trainers who have a history of delivering results, you can be assured that your staff, and bottomline, is in good hands.

  2. Industry Experience

    Another measure that should guide management when looking for a training provider is experience in the field. Training companies that work with established brands, such as the Illovo Sugar team pictured above, are usually abreast with industry standards and practice.

  3. Evidence of Impact & Measurement

    The R.O.I of training programs can only be measured if effective evaluation and reporting are done. A training provider that is able to measure and deliver final results achieved vs. initial training objectives, will go a long way in meeting your goals.

Having followed the outlined steps, management should look forward to an enhancement in key result areas, as well as staff behavior change. Expected outcomes could include: reduced turnover, improved customer response time and higher employee satisfaction.

With this information at hand, managers can effectively implement training programs to peak operational activity in downtimes such as the year end.


With most businesses, there is a tendency for operations to slacken as the financial year comes to a close. To ensure optimal use of resources and set the pace for the coming year,  skills training programs may be the shot in the arm an organization needs.

As the production year progresses, it is typical for any business to come across different hurdles that require evolutionary thinking on the part of management and staff.

It is also important to note that with the extended break, a lot of changes happen in industry. As such, it is vitally important that staff gets frequent training, not only to deal with current work – related issues, but also to prepare for the year ahead.

Over a period of 3 months, in 2015, for instance, the whole supply chain management process as it relates to tendering for services underwent a radical change. Without your finger on the pulse, such developments can be disastrous. It is for this and other reasons year end training can make all the difference.

The need to train staff in this day cannot be over-emphasized. Key to the success of this initiative is the profitability and R.O.I of training programs. To positively impact employee morale, productivity and turnover you have to prioritize adaptability and skills acquisition. This is a sure way to gain a competitive advantage as the year ends and beyond.

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