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A talent development (TD) professional has been asked to analyze training effectiveness in relation to company finances. Specifically, management wants to know if the training will pay for itself in 18 months. Which tool should the TD professional use?
Correct Answer: B
ROI MethodologyfromPhillips' Return on Investment in Training and Performance Improvement Programs (Certification Reading List) states: "ROI calculations show whether financial returns on a training initiative exceed its costs within a specific timeframe". Break-even doesn't measure return; it measures cost recovery point. Reference:Return on Investment in Training and Performance Improvement Programs, Phillips (2012).
