SkillPath Enterprise Solutions | Training ROI

Training ROI

Training your people brings measurable results

ROI—on-site training presents bottom-line payoffs

According to a study by the Association for Talent Development (ATD) of 575 companies over three years, training that is well-planned, developed and delivered has a powerful impact on an organization's bottom-line results.

Investing in training leads to higher shareholder returns

Consider the following:

  • Firms that invested the most in training and development (measured by total investment per employee and percentage of total gross payroll) earned 45% more than the S&P 500 index average in total shareholder return. These same firms also recorded higher profit margins, higher income per employee and higher price-to-book ratios.
  • Firms that invested $1,500 per employee in training compared with those that spent $125 reported an average of 24% higher gross profit margins and 218% higher revenue per employee
  • An increase of $680 in a company's training expenditures per employee generated, on average, a 6% improvement in total shareholder return

Just as important are the benefits of well-implemented training that are harder to document but generally accepted by most human resources, training and operational professionals:

  • Higher efficiency and smoother operations from less time correcting errors, less duplication of effort and greater cross-functional teamwork
  • Better employee retention from more positive morale and greater employee commitment to organizations that help them grow professionally
  • Cost savings from greater productivity, fewer accidents, fewer machine breakdowns, etc.
  • Greater customer retention from customers who are happier with the services they receive and who build greater trust in the organizations they purchase from

At SkillPath, we believe that it takes great training to get great results. We can implement a variety of evaluation and measurement tools to ensure management can clearly see the positive impact training has. We recommend a coaching day following all instructor-led training to address any pending questions and reinforce the training principles.