Training as an Investment

SHARE   |   Monday, 11 June 2018   |   By Isang Lekhutile
Training as an Investment

Measuring the effectiveness of training programmes consumes valuable time and resources and many training programmes fail to deliver the expected organisational benefits mainly due to lack of evaluation. The most well-known and used model for measuring the effectiveness of training programmes was developed by Donald Kirkpatrick in the late 1950s.

Dr. Don Kirkpatrick designed a model, which aimed to measure the effectiveness of training programmes. Despite the model being very old (over half a century old) and having been revised by other authors Kirkpatrick model remains vital in training evaluations. For training to be viewed as investment, it needs to me assessed to appreciate its value to business and trainees. Employee training and development is an organisational activity in human resource management, which focuses on enhancing and nurturing employee skills; hence improving individual and organisational performance. As much as organisations are willing to invest in their employees through training they need ROI, therefore they demand training practitioners to give relevant training that will benefit their organisations. ROI and cost-benefit analysis are familiar decision-making tools used in business management and organisations to measure the financial impact (gain or loss) of funding an activity. In simple terms, ROI is the ratio of the net benefits of an investment compared to its total costs. Remember the old saying “there is no free lunch”, accordingly someone is fitting the bill and needs accountability of his money. According to Phillips model of evaluation, training programme implemented should create a chain of impact at several levels beginning at Satisfaction/Planned Action and ending in ROI.

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Mind you in Botswana organisations pay training levy which is based on the company’s turnover and the levy rates will be determined by the turnover. Besides claiming funds from Human Resources Development Council, organisations ought to understand that it is their responsibility to train and develop its employees because they are the most valuable assets driving their success. Investments come in different shapes and forms; nonetheless organisations should measure benefits that an investment on a training programme offers the organisation. To calculate the value and investment on training, the organisation should obtain measurement of cost associated with the training programmes. These costs may vary from organisation to organisation but common costs are the course delivery, travel and accommodation should be calculated. Unfortunately, the financial benefits cannot be measured from the learner reactions to learning but the improved performance after training should be used to provide evidence.  Some organisations go to the extent of calculating the measurements of the benefits associated with the training programme. Effective training programme should yield competent employees and enables organisations to retain their employees, thus reducing the turnover rate and subsequently augment the competitiveness of an organisation. When employees are aware of the investment made by the organisation through training they tend to be motivated to work harder in order to reciprocate the favour. Hard work eventually leads to more returns, and this might be in terms of production or even profit margins. Maximising the potential of the workforce has a direct positive impact on the business or organisation’s profit levels. It is necessary for companies who are in contention for a fair market presence and competition to offer employee training and development programmes to their personnel.

Employees are major assets of every organisation and, according to Hafeer (2015), they determine the direction of an organisation and its success and failure mainly based on their performance. Training can assist employees to understand how their efforts can drive the organisation to its desired success destination. Furthermore, employee training is essential as it allows organisation to stay in the right path as stipulated by its mission and vision.  In conclusion, a lot of researchers on training concur that training improves employees’ morale and ultimately the individual performance. Hence; invest in training and get the benefits. 



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