Analysing Enterprise Returns on Training.

Recent Australian and overseas studies on evaluation of enterprises' return on training investment (ROTI) were reviewed to identify key issues in encouraging increased evaluation of training benefits by enterprises and successful approaches that may inform future "enterprise-friendly" studies of ROTI. It was concluded that more practical, creative, and cost-effective approaches to determining ROTI are needed so as to encourage more enterprises of all sizes to conduct their own ROTI studies. The following were among the recommendations emerging from the review: (1) adopt a broad definition of training that incorporates all forms of learning and skill formation; (2) use the term ROTI when evaluating enterprise returns from training rather than the narrower quantitative term "return on investment"; (3) develop and use ROTI approaches that provide decision makers with timely, useful, and accessible qualitative and quantitative evidence of the contribution of training to enterprises' operational and strategic priorities; and (4) focus on using existing enterprise data. More than 50 possible training outcomes were identified under the following headings: productivity and efficiency; sales and profitability; quality of products and services; customer service and satisfaction; occupational health and safety; organizational learning and development; and organizational climate and practices. (Contains 54 references.) (MN)