Here are four formulas for calculating the return-on-investment intechnology-based training (TBT):
Cost Savings
| instructor-ledcosts – technology training costs | = | TotalCost Savings |
|
Break-Even Analysis for TBT
Step 1:
TBTdelivery costs
# students | = | Per-StudentDelivery Cost of TBT |
|
Step 2:
instructor-ledtraining delivery [ILT] costs
# students | = | Per-StudentDelivery Cost of ILT |
|
Step 3:
(TBTdesign / development costs – ILT design / development costs)
(step 1 – step 2) | = | Break-EvenPoint |
|
Cost-Benefit Analysis
financialbenefits
cost of training | = | Cost/BenefitRatio |
|
ROI Calculation
(totalbenefits – total costs) * 100
(total costs ) | = | ROI (%) |
|
Excerpted from “What Smart Trainers Know,” by Lorraine L. Ukens, Copyright 2001 by John Wiley & Sons, Inc. This material is used by permission of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc.
