Friday Keynote: Connecting the Dots on Training ROI: Skills Development to Business Outcomes…

(May 4)

Summary: In this session, Allan presented some attention-getting statistics on Canada’s failing productivity, and showed the link between economy, productivity, and skills. Canadian business invests less money per employee on training when compared to American and European countries. Productivity has declined in small and medium business enterprises over the last 25 years. The major culprit is basic skills, literacy – both requirements to participate in the knowledge society (so impact is economic and social). The statistics presented to evidence that training adds value were mostly from small and medium business data. Understandably, the larger ROI numbers were documented for situations where low-skilled workers are provided with training. Corporate metrics such as shareholders returns were noted to be higher in organizations that invested in training. However, with al this data, Allan still acknowledged that ROI was still a nebulous concept for most, and understanding and interpreting the ROI numbers that come out of a study are still a challenge for most of us.


Ang’s thoughts: A fascinating presentation – moreso again from the point of view from all the questions it stimulated. Yesterday, it was mentioned that the evaluation models put forth by Kirkpatrick and Phillips were applicable to formal training situations which, as we also now know, are about 20-30% of the learning that goes on in an organization. This is the data that is used to calculate ROI (return on investment). I had a chance to speak with Allan after his presentation and asked him for his perspective on a few things. For instance, if up to 80% of learning in an organization is informal, what impact does that have on ROI? If ROI is calculated based only on formal learning, where is the consideration given for the impact or modifying effect of informal learning on ROI? I cannot see how you can control for informal learning effects so that ROI is cleanly and solely the result of formal learning, but Allan is much more the expert in this area and indicated it was possible. However, he acknowledged that he, too, had an interest in the relationship between ROI and informal learning and would do more work in that area in the future. FANTASTIC!

Submitted by: Angela van Barneveld