Definition of ROI in Training Programs:
* ROI measures the monetary benefits gained from a training program compared to its costs, expressed as a percentage. It is calculated using the formula: ROI=(TotalBenefits#TotalCosts)TotalCosts×100ROI =
\frac{(Total Benefits - Total Costs)}{Total Costs} \times 100ROI=TotalCosts (TotalBenefits#TotalCosts)×100 Why ROI is the Best Option:
* ROI provides a comprehensive view of both direct and indirect financial outcomes of training, such as productivity increases, error reduction, or improved employee retention.
* It enables decision-makers to evaluate whether the training aligns with organizational goals and justifies the investment.
Eliminating Incorrect Options:
* A. Cost-benefit analysis:Focuses on comparing costs to benefits but does not provide a direct monetary value or percentage.
* B. Learning program costs:Tracks expenses but does not assess program effectiveness.
* C. Learning management system (LMS):Refers to a platform for delivering and managing training but does not measure monetary outcomes.
International HR References:
* Kirkpatrick Model of Training Evaluation:Includes ROI as part of Level 4 evaluation for training impact.
* ASTD Guidelines:Best practices for calculating ROI in employee development programs.