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American delegation reveals four steps to check the effectiveness of your in-house skills development training!

by , 28 January 2013
The easiest way to boost the economy is to create jobs and improve employees' skills. An American delegation to SA recently noted 'Skills development is always a global focus as it is what will create real job opportunities'. That's why we have to educate the workforce. But you can't just sit your employees through another PowerPoint presentation and assume they've been effectively trained. You can check how effective your in-house training has been by working out your Return on Training Investment (ROTI) score. The higher it is, the more effective your training. There are four simple steps to working out your ROTI score.

A delegation from the American Society for Human Resource Management visited South Africa in November to share knowledge and best practice.
 
'Global trends in human resource management focus on talent management including attraction, retention, engagement and skills assessment,' says Howard Wallack, the vice president global business development at the Society for Human Resources Management.
 
'Of course skills development is always a global focus as it is what will create real job opportunities. We have to educate the workforce'.
 
ROTI is the easiest way to check if your in-house skills development training has been effective
 
But how do you check whether your in-house skills development training has been effective?
 
The purpose of training is to develop business-critical, job-related skills and knowledge to those employees that do not have them, according to Janine Nieuwoudt, editor-in-chief of the Practical Guide to Human Resources Management.
 
The easiest way to check whether your training has been effective is to calculate your Return on Training Investment.
 
Return on Training Investment (ROTI) is a performance measure you can use to calculate how well the money you invest in training your employees is used, according to the Labour Bulletin.
 
Here's how to measure your ROTI in four simple steps
 
1.    First, gather company statistics before and after your training
This includes how many employees you have, how much they earn per year and your reason for training them, such as staff retention.
 
2.    Calculate the rand value of the benefits you want to achieve from your training
For example, you can find out how much keeping an employee would save your company in recruiting fees. To find out the rand value to replace one employee, multiply the employees' average earnings before overtime by the cost of employee turnover – this should be 50% of the employee's annual salary.
 
3.    Figure out the benefit to cost ratio
The total rand value of benefits / cost of training = benefit to cost ratio
 
4.    Calculate your ROTI
This is the total benefit minus the cost of training the employee.
 
If your final ROTI score is high, you're using your training budget well and your in-house training is likely to be effective.

Find out what all your skills development recruirements are here.


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