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RETURN ON INVESTMENT (ROI)

ROI is a measure of the monetary benefits obtained by an organisation over a specified time period in return for a given investment in a training programme. It is the extent to which the benefits (outputs) of training exceed the costs (inputs). Analysing training programmes using techniques like ROI may help senior management teams to see ‘human capital’ as an investment instead of an expense.

OD ESSENCE:
ROI of learning and development provides meaning evaluation so that training programmes can be dropped, improved or maintained.