Level 5 Evaluation: Returns
Dr. Jack Phillips was not satisfied with Kirkpatrick's four levels. He believed that only by conducting an evaluation to determine the Return on Investment (ROI), could a company discover the monetary or financial benefits of the training program compared to the cost of implementing the training.
Thus, the fifth level of training evaluation is developed by collecting Level 4 results, converting the data to monetary values, and comparing them to the cost of the training program to represent the return on training investment.
For instance, if the benefits (savings) due to fewer accident costs and workers compensation payments for last year was $400,000 and the cost of conducting training is $40,000, the training ROI (%) for last year would be ($400,000-$40,000)/$40,000)x 100 or 900%. In other words, last year the company saved NINE-TIMES the cost of training ($360,000/$40,000). Now that's ROI!!!
Knowledge Check Choose the best answer for the question.
7-6. What is the method used to measure Phillips' Level 5 (Returns) evaluation?
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