Investing in training and development is a cornerstone of organisational growth, but measuring the return on that investment (ROI) can often be challenging. While many businesses focus solely on financial outcomes, the real value of training lies in its ability to drive sustainable behavioural change. This blog explores a practical approach to measuring ROI in training and development, emphasising the importance of combining measurable outcomes with observable behaviours.
The True Purpose of Training
Training and development programmes aim to equip participants with new skills and knowledge that directly impact their performance. However, the real measure of success lies in whether these skills translate into consistent behavioural changes. As Alex Selwood, Founder of Expression for Growth, explains, "Training works when it translates to behaviour change. Without that, even the best-designed programmes may fail to deliver meaningful results."
For example, one participant in a training programme applied a newly learned behaviour and secured a multi-million-pound deal. This single action not only delivered a significant ROI but also demonstrated the value of embedding repeatable behaviours that drive long-term business outcomes.
Setting the Foundation for ROI Measurement
To effectively measure ROI, companies need to define success before the training begins. This involves identifying key metrics and behavioural goals that align with broader business objectives. Alex highlights the importance of upfront conversations with stakeholders to clarify expectations, saying, “Let’s be really clear about the measures you want to change—both business performance and observable behaviours.”
Key areas to measure include:
- Business Performance Metrics such as revenue growth, profitability, or customer retention provide tangible evidence of training’s impact.
- Behavioural Shifts in actions, language, and decision-making processes are critical indicators of success.
- Cultural Impact such as improvements in the way teams communicate and collaborate can be measured qualitatively and quantitatively.
A Framework for Measuring ROI
To ensure meaningful measurement, focus on four indices:
- Desired Business Outcomes: Identify clear, measurable targets, such as an increase in sales or market share.
- Observable Behavioural Changes: Look for specific, repeatable actions that participants adopt post-training.
- Language and Culture Shifts: Monitor how the training influences team dynamics, communication styles, and shared values.
- Coaching and Reinforcement: Evaluate how leaders and managers support the application of learning through active coaching and feedback.
This framework provides a balanced view, combining quantitative metrics with qualitative observations to capture the full impact of training initiatives.
Sustainable Behavioural Change Drives Results
While financial outcomes are an essential part of measuring ROI, they only tell part of the story. As Gareth Moxom, Trainer, Facilitator and Business Coach, points out, “It’s the behaviour that’s repeatable. That’s what gets the return up even more.” Sustainable behavioural changes create a ripple effect, enhancing individual performance, team effectiveness, and ultimately, organisational success.
Moreover, these behaviours are directly connected to business results. For instance, in sales training, fostering behaviours that increase customer trust and engagement can lead to higher conversion rates and stronger client relationships.
Steps to Measuring ROI in Training
To summarise, here are the key steps to measure ROI effectively:
- Define Success Early – Engage stakeholders to identify desired outcomes and behaviours before the training begins.
- Use a Balanced Approach – Measure both quantitative results (e.g., revenue, profit) and qualitative changes (e.g., behaviours, culture).
- Observe and Reinforce – Ensure leaders and managers are actively supporting participants to apply their learning in real-world scenarios.
- Track and Adjust – Regularly review progress against your framework and make adjustments to enhance effectiveness.
Final Thoughts
Measuring ROI in training and development requires a thoughtful and structured approach. By focusing on both outcomes and behaviours, organisations can ensure their investments deliver long-term value. As Alex aptly puts it, “Have the confidence to measure what you want to change—not just the returns, but also the behaviours.”
Training is not just about immediate results; it’s about equipping individuals with the tools and mindsets to thrive in an ever-changing business landscape. With the right measurement framework, organisations can unlock the true potential of their teams and achieve sustainable success.
To learn more about how our Precision solutions can help your team develop the skills they need for the future, get in touch and talk to one of our experts.