The evaluation of organizational impact from training and the associated return on investment (so-called Level 4/5) has long been the “holy grail” of training evaluation. Despite many decades of advocacy, surveys of practitioners continue to show that it is not often implemented in practice. Most likely this is because practitioners perceive it to be too difficult, expensive and time-consuming. Given the techniques that have been advocated, they are somewhat correct.
Largely overlooked has been a technique advocated for over 60 years by industrial-organizational psychologists called utility analysis. The list of researchers advocating utility analysis reads like a “Who’s Who” of I/O psychology with Wayne Cascio and John Boudreau (2011) being the most current and well-known advocates but with much of the research foundation built by the renowned John Hunter and Frank Schmidt . Thus, it has deep and well-researched roots that have demonstrated its validity. Unfortunately it has not been adopted by practitioners because they mistakenly see the statistics involved as too complex.
TransferLogixTM now implements utility analysis in a practitioner friendly way to provide reasonable valid estimates of organizational impact and return on investment. The result is that every training program can estimate ROI with minimal additional effort.
The results promises to revolutionize ROI estimation because it takes most of the pain out of the process. Instead of being time consuming, hard, and not worth the effort it can now become part of the daily practice of every training organization.
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