How do I collect ROTI data and create the ROTI report?

There are 4 key steps to collecting ROTI data and creating the ROTI report.

Step 1: Choose the performance measures you want to use.

First you will need to work with key stakeholders to choose the relevant business performance measures you want to use as a basis for the ROTI analysis. These measures should be linked to the original training objectives.

Examples of measures include changes to:

  • productivity/output rates
  • sales volumes
  • employee turnover rates
  • customer satisfaction and retention rates
  • number of customer complaints
  • wastage rates
  • non-compliance
  • rate of accidents per year
  • number of sick-absence days per month
  • number of cancelled training days/sessions
  • recruitment costs.

It is essential that the measures you choose:

  • are relevant, ie. changes to them are attributable to the training. (Note: As there are factors other than the training that may influence changes to the selected measures, stakeholders will need to estimate the proportion of change which can be directly attributed to each factor.)
  • are measurable, or can be reasonably estimated by key stakeholders
  • can be assigned a financial value by stakeholders.

This last requirement may sometimes mean defining or estimating the financial value of changes in performance that are not usually measured in this way.

Step 2: Gather data on changes

Next you will need to gather data on the selected performance measures. You will need to collect the following:

  • financial data in relation to the changes in performance
  • estimates of the % influence of the training on these changes relative to other possible influences.

Note: Example ROTI questions and evaluations are provided within TrainingCheck.

You will need to collect this data from stakeholders who both have access to the relevant performance/financial data and are in a good position to estimate the likely influence of the learning programme on changes to this data. This may include operational managers and/or other key experts in the organisation, eg, within Finance, Operations and Human Resources departments.

You can use TrainingCheck to create and deploy your ROTI evaluation(s) in the usual way, ie using email or via your company webpage. However, you may find it just as effective to collect the data through other methods, such as face to face meetings or desk research.

Whichever data collection method(s) you choose, once you have gathered the data you will need to enter it manually into the TrainingCheck ROTI Calculator. Just click on the ROTI Calculator tab to open the Calculator, and then enter the performance data, source (ie who provided the data) and % influence of the training programme into the relevant sections. The total financial benefit attributable to the training will then be calculated automatocally according to the following formula:

Total Financial Benefit of Performance Change x % Influence of the Training = Total Financial Benefit Attributable to the Training

For example, if the total financial benefit of a improvements in staff retention is £10,000, and the training is estimated to have been responsible for 50% of that change, then you get the following:

£10,000 x 50% = £5,000 Total Financial Benefit Attributable to the Training

It is this figure (ie £5,000) which will be used as part of the final ROTI calculation.

Step 3: Add data on Costs

Once you have added the financial benefits from training programme, you will then need to enter details of the costs associated with the training. To begin this process, click the [Add Data on Costs] button on the ROTI Calculator page. This will launch the ‘Cost Calculator’. Then just enter the details of costs as prompted.

Costs associated with a training programme fall under the following broad categories:

  • management
  • development costs (eg developer fees, design, printing)
  • delivery costs (eg facilitator fees, venue, learning materials)
  • attendance costs (eg employee release costs, travel, accommodation)
  • overheads.

The Cost Calculator provides guidance on how these costs can be broken down and calculated.

If your organisation has its own method for calculating costs associated with each training programme, you can choose to enter the total cost directly into the final ‘Costs/overheads not included’ section at the end of the Cost Calculator.

Notes on entering costs:

  • Salary costs should include all benefits (usually between 25% and 50% of the base salary). This should be both for the programme participant and for all others involved in the management, administration, delivery and evaluation etc of the programme.
  • To calculate employee release costs, first you need to calculate the salary per day – to find this add together the salary and benefits per year then divide this by the number of work days per year. To calculate the release costs multiply the salary per day by the total number of days attending the training.
  • For large groups of learners you may wish to use average hourly rates rather than actual rates.
  • Costs associated with ‘backfilling’ jobs of learners’ and any overtime needed should also be included.
  • You may also consider including costs associated with supporting employees to apply their learning to the workplace (eg on-the-job coaching).
  • Costs associated with equipment such as laptops and computers should be apportioned if these are used for other training programmes. Only the depreciation cost for the ROI period should be included.

Step 4: Create the report

Once all of the data on financial benefits and costs associated with a training programme have been entered into the ROTI Calculator, you will be able to generate the ROTI report. Just click the [Create Report] button on the final page of the Cost Calculator.

The report will include a summary of the benefits and costs added and provide an analysis of the the ROTI %, the Benefit to Cost ratio and the Payback Period. ROTI Reports are stored on the My Reports page and can be edoted there.


Article Quick Jump :