The measurement of the effectiveness of online training is a hot topic right now. This article explores how you can use the Kirkpatrick model of training evaluation to measure training effectiveness, its impact, and eLearning ROI.
What Is Training ROI?
Return on Investment (ROI) in training is a critical metric that measures the effectiveness and financial return of educational programs within an organization. It’s not just about the monetary gains; it also encompasses the qualitative improvements in skills, productivity, and organizational culture that result from training. Understanding training ROI is essential for businesses to evaluate how well their investments in employee development are paying off.
Key Components of Training ROI
- Costs versus Benefits:Training ROI compares the cost of training (like materials, instructors, technology) against the benefits (improved performance, higher productivity, reduced errors).
- Quantitative Measures:These include direct financial gains, such as increased sales or reduced operational costs due to improved skills and efficiencies.
- Qualitative Measures:Often overlooked, these refer to intangible benefits like improved employee morale, better teamwork, and enhanced corporate culture.
- Time Frame:ROI is not just a post-training measure. It’s assessed over a period, from immediate impacts to long-term changes in performance and growth.
Why Measure Training ROI?
Measuring the ROI of training programs is crucial for businesses to understand the effectiveness and value of their educational initiatives. It goes beyond mere financial assessment, offering insights into various aspects of organizational growth and employee development.
- Financial Accountability:Ensures that the funds allocated for training are being used effectively, leading to tangible business benefits.
- Improved Decision-Making:Provides data-driven insights for future training investments and strategies.
- Aligning Training with Business Goals:Helps in aligning educational programs with the organization’s overall objectives.
- Identifying Effective Training Methods:Differentiates between the most and least effective training methods, allowing for optimization of resources.
- Enhancing Employee Engagement:Demonstrates to employees that their development is valued, leading to increased motivation and job satisfaction.
- Benchmarking and Continuous Improvement:Sets benchmarks for training effectiveness and guides continuous improvement in training methodologies.
- Competitive Advantage:In the long run, effectively trained employees can provide a significant competitive edge in the market.
Key Challenges of Measuring Training ROI
Measuring the ROI of training programs can be complex, with several factors making it difficult to assess the true impact of training initiatives.
- Attributing Results to Training:Isolating the impact of training from other variables affecting performance can be difficult.
- Long-Term versus Short-Term Impact:Some training benefits take time to manifest and may not be immediately apparent.
- Quantifying Qualitative Benefits:Measuring intangible benefits such as improved morale or stronger leadership skills poses a significant challenge.
- Data Collection and Analysis:Gathering and analyzing relevant data effectively can be resource-intensive.
- Balancing Costs and Benefits:Accurately assessing all costs associated with training, including indirect costs, is crucial but often challenging.
- Changing Business Environments:Rapid changes in business environments can make it difficult to assess long-term training ROI.
- Stakeholder Expectations:Aligning the ROI measurement with the diverse expectations of stakeholders can be complex.
Despite these challenges, organizations can follow a structured approach to measure training ROI effectively.
How Do You Measure Training ROI?
Measuring ROI for training involves a systematic approach combining financial and non-financial assessments.
- Identify Training Costs:This includes direct costs like materials and instructor fees and indirect costs such as time spent by employees in training.
- Define Objectives and Outcomes:Clearly outline what the training aims to achieve, including both skill acquisition and business impacts.
- Gather Data Pre- and Post-Training:Collect relevant data before and after the training to measure changes in performance, productivity, or other relevant metrics.
- Calculate the ROI:Use the formula ROI = (Monetary Benefits – Training Costs) / Training Costs × 100%. This calculation gives a percentage representing the financial return on the training investment.
Effectively measuring training ROI often involves using the Kirkpatrick model of training evaluation, a widely recognized and respected framework.
What Is the Kirkpatrick Model of Training Evaluation?
The Kirkpatrick model of training evaluation is a widely used four-level framework for assessing training effectiveness: Reaction, Learning, Behavior, and Results. Originally developed by Dr. Donald Kirkpatrick in 1959 and updated in 2016 as the New World Kirkpatrick Model, it emphasizes aligning training with organizational goals to maximize ROI.
The Kirkpatrick Model of Training Evaluation – An Overview
With a legacy spanning over half a century, the Kirkpatrick model of training evaluation continues to be a cornerstone of training assessment. It helps organizations measure learner feedback, knowledge acquisition, skill application, and business impact. The model consists of the following four levels:
- Level 1: Reaction– Evaluate how participants reacted to the training.
- Level 2: Learning– Measure the increase in knowledge or capabilities after the training.
- Level 3: Behavior– Observe changes in behavior and application of skills on the job.
- Level 4: Results– Assess the training’s impact on business results and objectives.
Initially, the Kirkpatrick model of training evaluation was viewed as a pyramid, with each level building up from the previous one.
Increasingly, these same 4 levels are viewed as a “chain of evidence,” reflecting a more relevant connection between each level.
The Benefits of Using the Kirkpatrick Model of Training Evaluation
The Kirkpatrick model of training evaluation remains a widely adopted framework for evaluating training effectiveness due to its structured, results-driven approach. Its benefits include:
- Holistic Evaluation – By assessing Reaction, Learning, Behavior, and Results, the model provides a well-rounded view of training impact beyond just participation metrics.
- Emphasis on Outcomes – It prioritizes measuring how training influences real-world performance and business success, ensuring that learning initiatives drive meaningful results.
- Alignment with Business Goals – The model helps organizations tailor training to address specific performance gaps, directly supporting strategic objectives.
- Identifies Strengths & Gaps – Evaluating all four levels allows L&D teams to pinpoint what’s working and what needs improvement, refining content and delivery.
- Data-Driven Decision Making – By structuring evaluation around measurable data, organizations can make informed choices about training investments and enhancements.
- Encourages Continuous Improvement – Ongoing feedback and assessment at each level enable iterative refinements, enhancing long-term training effectiveness.
- Stakeholder Engagement – Clear, structured insights from the model help communicate training value to leadership, securing buy-in and support.
By leveraging these benefits, organizations can ensure their training programs contribute to measurable business success.
How Do You Begin the Exercise to Measure the Effectiveness of Online Training?
At EI, we use the approach shown here. Essentially, we focus on each stage, from TNA to ROI calculation, as the right action at each stage will positively impact the ROI of eLearning.
- Training Needs Analysis (TNA)
This is the baseline and will be eventually used to measure the desired gain for the learners (acquisition of a new skill or fixing a gap) and if this gain resulted in the required impact the business had sought. Capturing the needs of the learners and having clarity on how you will measure their progress (that is, the expected gain) is a key component of the exercise. - Determining the right training format (online, blended, or ILT)
The next step is identifying the right format of training that aligns best with the TNA (Sometimes, training may not be the answer, and you need to identify supporting measures like coaching or mentoring). The selection of the right format is crucial in encouraging the learners to pursue it and also in ensuring that they connect with it, complete it, and apply the learning on the job. - Identifying the learning strategy
The selection of the right learning strategy format is vital in engaging the learners. As we know, only an effective learning strategy can create a sticky learning experience. However, it is equally important to note that having formal training alone may not be enough. We also need to provide room for the application of knowledge and practice or nudges to mastery. Hence, the learning strategy must have a combination of formal training and performance support intervention to manage your mandate successfully. - Determining the gain by the learners
An effective assessment strategy is the main approach to determine this. However, it is important to ensure that the measurement of this gain also factors for the validation of the application of the acquired learning and is not limited to the validation of knowledge acquisition. - Assessing the gain for business
We can look back at the parameters identified during the TNA stage and assess the required gain that has occurred and if the business saw the required impact. - ROI determination is the final outcome of this exercise
Once the gain is monetized and compared with costs, we will arrive at the ROI of your eLearning. Often, this outcome may require revisiting the TNA and reassessing or adjusting the way forward.
A diagram here illustrates how these aspects are interconnected and form a cycle.
How Can You Practically Use the Kirkpatrick Model of Training Evaluation to Determine Training ROI?
To use the Kirkpatrick model of training evaluation, we need to identify two aspects at each level, namely:
- What are we measuring?
- How will we use this outcome (to improve training effectiveness and increase its impact)?
Level 1: Reaction
Objective: At this level, the focus is to determine the learner’s reaction to the training. Today, we have wide-ranging options through Learner Analytics to identify if the learners liked the training, if they found it useful, and if they would be able to apply the learning.
From an evaluation perspective, this feedback enables L&D teams to assess if they are on track or if any further changes are required.
Level 2: Learning
Objective: At this level, the focus is to determine what was learned or gained (this should be attributable directly to the training).
From an evaluation perspective, this feedback enables L&D teams to assess whether they have met their mandate (as defined during TNA), which could include:
- Knowledge gain.
- Acquisition of a new skill.
- Further proficiency gained on an existing skill.
- Behavioral change.
The pointers from this stage of evaluation would point to:
- The need for further training.
- The need to supplement formal training with other measures that could include performance supportintervention or mentoring/coaching.
Level 3: Behavior
Objective: At this level, the focus is to determine if the learner’s behavior changed (again, this should be attributable directly to the training).
From an evaluation perspective, this feedback enables L&D teams to assess if there was a demonstrable change in the learner’s behavior.
Often, this can be tricky. Although learners had successfully cleared the assessment, there is no demonstrable change.
This may need re-assessment to determine why this is not happening.
- Sometimes, it could be because learners have no opportunity to demonstrate what they learned, and often, it may point to the need for reinforcement.
- There may be a need to have refresher programs to be offered over an extended period till the required gain is observed.
Level 4: Impact
Objective: At this level, the focus is to determine if the business saw the gain and if the required impact was created on account of the training.
From an evaluation perspective, this feedback enables L&D teams to review if the expected impact identified during the TNA phase indeed happened.
What Is Level 5 of the Kirkpatrick Model of Training Evaluation?
Level 5 of the Kirkpatrick model of training evaluation extends assessment beyond organizational outcomes to societal impact. J. J. Phillips introduced ROI to quantify the financial gains from training, while Roger Kaufman argued that ROI belongs under Level 4 (Results). Instead, Kaufman proposed Level 5 to evaluate training’s broader impact on society, stakeholders, and the environment, aligning learning with corporate social responsibility (CSR) and sustainability.
How Does the Kirkpatrick-Phillips Model Help Measure Training ROI?
The Kirkpatrick-Phillips Evaluation Model provides a structured approach to measuring ROI in training by comparing development and delivery costs to measurable business outcomes. In eLearning, a positive ROI is achieved when the value gained from training exceeds the investment required for its creation and implementation. By applying these principles, organizations can optimize each stage—from training needs analysis (TNA) to evaluation—ensuring effective learning outcomes and a strong return on investment.
Ultimately, the Kirkpatrick-Phillips Model offers a data-driven, results-focused approach that helps businesses not only justify training investments but also align learning initiatives with strategic objectives. By leveraging this framework, organizations can maximize training impact, foster continuous improvement, and drive sustainable business success. Investing in structured training evaluation ensures that learning initiatives are not just cost centers but strategic drivers of growth.
