Structured Approach to Calculating ROTI PPT


This PPT slide, part of the 24-slide Return on Training Investment (ROTI) PowerPoint presentation, outlines a structured four-step process for calculating Return on Training Investment (ROTI). It emphasizes the importance of selecting appropriate performance measures, gathering relevant data, and ultimately calculating the ROTI. Each step is crucial and has its own requirements, indicating that a thorough approach is necessary for accurate results.

The first step involves choosing the performance measures to use. This is foundational, as the selected metrics will guide the entire analysis. The second step focuses on gathering data on changes, which likely refers to assessing the impact of training on employee performance or organizational outcomes. The third step is about collecting data on costs, encompassing both direct and indirect expenses associated with training initiatives. Finally, the fourth step is the calculation of ROTI itself, which synthesizes the previous steps into a quantifiable measure of training effectiveness.

The slide also hints at the complexity of the ROTI calculation by mentioning the consideration of non-monetary benefits, such as changes in employee attitudes. This suggests that a comprehensive evaluation of training outcomes goes beyond simple financial metrics. The additional benefits noted, like reduced absenteeism and lower turnover rates, highlight the broader implications of effective training programs.

Overall, this slide serves as a clear guide for organizations looking to assess the value of their training investments. It stresses the need for a methodical approach, ensuring that all relevant factors are considered to derive meaningful insights. Understanding this process can help executives make informed decisions about training strategies and resource allocation.




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