The Return-On-Investment (ROI) Forecasting Tool [ZIP] provides valuable information that helps estimate and calculate your automation training ROI. Understanding how to forecast and measure your ROI potential prior to each training event is essential to determining the value of your employee training investments.
The ROI Forecasting tool includes common manufacturing metrics related to production, quality and service that are affected by employee training. Similar to an online calculator, choose which metrics apply to your organization and input the data. This tool can be used in two valuable ways:
- Download and use the results for justifying any training expense.
- Download the tool and compare the forecasted training ROI with actual results realized after the training is completed.
The Pre-Training ROI Forecasting Model presents the methodology used to create our ROI Forecasting Tool. This model is used to apply consistent measurement and ROI calculation practices to every training event. Roll over each block to learn about each step in the Pre-Training ROI Forecasting Model.
|Pre-Training ROI Forecasting Model
|Determine Training Cost
||Consider these costs: materials, instructor, training facility, equipment, travel/lodging/meals, number of students and time away from the job.
|Identify & Calculate Cost Metrics Affected by Workforce
||Metrics include the cost of downtime, vendor support, overtime, waste, maintenance, etc. Use the Metric Selection Guide [PDF] on this website to choose metrics for measuring the impact of training on your business.
|Estimate Percent Improvement as a Result of Training
||Industry standard for estimated annual impact from training is 8 - 13%.
|Calculate the Return on Investment
||Calculate the forecasted ROI using the total projected savings and costs. ROI% = ((Net Savings-Cost)/Cost) x 100. Refer to the ROI Tool for details about this calculation.
|Forecast Any Intangible Benefits of Training
||Results that are hard to measure and not easily converted to monetary value. Examples include, improved teamwork, reduced complaints or conflicts, improved communication, increased job satisfaction, increased confidence, etc.