The Human Resources Forum (THRF) started 2017 with a seminar titled “Methods to Create Returns on Investment”. Hosted by the University of Wollongong in Dubai (UOWD), 40 members of the HR profession, staff and students attended the presentation delivered by Mr Joe McClary.
Return on Investment (ROI) is a results-focused performance measure used to justify expenses and make evidence-based decisions. With ever tighter budgets, technology on the rise and living in a knowledge-driven economy, an evaluation of a company’s ROI helps to ensure that they produce the most desirable outcomes with the limited resources available. This is a valuable tool in the decision-making process for all managers.
In challenging times, the training budget is one of the first areas for review; therefore, the human resources industry needs to focus on measuring the value of learning programmes, to ensure they contribute to the overall performance of a company, as well as the performance of an individual.
Mr McClary discussed the four critical steps in the ROI process model: 1. Evaluation planning, by setting objectives of what is to be achieved, 2. Data collection, which needs to take place during and after the learning program, through methods such as surveys, self-assessments, performance demonstrations, 3. Data analysis, and lastly, 4. Reporting the results.
“To properly determine ROI, variables must be isolated and not be exposed to other variables that might influence the results”, commented Mr McClary. Once the variables are isolated, various techniques are used to convert the data into monetary value.
Additionally, the presentation provided valuable insight into the Kirkpatrick Model of training evaluation. The four levels included: Reaction, which measure how trainees reacted to the training; Learning, which measures what they have learned; Behaviour, which measures how the trainees applied the information they have learned and finally; Results, which determines the targeted outcome of the specific training.
The seminar provided students and HR professionals with an in-depth understanding of the ROI process. Furthermore they learned how to apply ROI successfully in other applications such as Learning and Development, Career Development , Competency Systems , E-Learning, Leadership Development and Executive meetings to name a few.
Joe McClary is a non-profit Certified Association Executive with substantial experience in developing creative, technology driven and revenue generating member programmes for associations. As a former education consultant, Mr McClary has extensive experience with education standards, regulation, technology and course delivery. He worked with regulatory agencies and more than 400 course providers to assist them in meeting professional education standards.
THRF in conjunction with UOWD regularly hosts lectures on HR related issues. For more information about THRF contact firstname.lastname@example.org