Since 1998, money spent on learning and development as a retention tool has increased 15%. However, when times are tight, all programs are held under scrutiny to see how they contribute to the bottom line. If training programs are to survive, they need to prove their value.

General statistics about training strongly support the value of the time and money invested. Companies that spend more than the average amount on training have a higher placement of internal hires and lower annual turnover rates. In addition, the value of an individual program can be measured fairly effectively using objective data. Jack Phillips, an expert on measurement, evaluation, and return on investment offers the following steps to show a link between training and business results:

1. Determine how the training is connected to a business need.
2. Make sure the program has clear objectives.
3. Determine the return on investment of the training by following these steps:

a. Collect data to demonstrate the change in behavior
b. Isolate the effect of training
c. Convert the data to monetary value
d. Tabulate program costs
e. Calculate the return on investment