For other Informa Webinars: http://www.informa-mea.com/webinars To view recording: https://youtu.be/rf3quA1xqIs or watch the video at end of the slide When companies are looking to cut costs in this economic environment, invariably the training budget becomes a target. We have consistently failed to measure the return on training and, therefore, have no defense when our budgets are cut. About the Presenter: Paul Walsh is a professional Human Resources Trainer, Consultant and Practitioner with over 20 years’ experience in the GCC, MENA and Asia.

1. Defend Your Training Budget
By
Paul Walsh

2. About The HR Observer
• The HR Observer is an initiative by Informa Middle East
aimed at becoming a platform for HR professionals in the
Middle East to exchange insights and expertise, both online
and offline, in an effort to take the industry forward
• The initiative features a blog, LinkedIn group, Twitter feed,
online webinars and a series of offline informal networking
functions

3. Housekeeping
• The slides will be available on our SlideShare page,
and a link will be emailed to you
• The recording of the webinar will be available to
view, and a link will be emailed to you
• Please take the time to complete the post-webinar
survey that will pop up at the end
• Questions will be answered at the end of the
webinar

4. Today’s Presenter
Paul Walsh is a professional Human Resources Trainer, Consultant and practitioner
with over 20 years’ experience in the GCC, MENA and Asia. He currently mixes his
consultancy work with lectures at Further and Higher Education Colleges and
Universities in the UK.
Well known in the Gulf region; his unique experience in Human Resources, Finance
and Operations ensures he brings real practical examples and a wealth of experience
to his HR courses on talent management, recruitment, competencies, training and
development, performance management, HR budgeting and manpower planning.
He has also undertaken consultancy work in Qatar, Pakistan, Malaysia, Hong Kong,
UAE, Oman, Bahrain and Egypt. He has worked with clients in the oil & gas, banking,
telecommunications, retail, construction and automotive sectors.
Paul now runs his own consultancy, specialising in HR, Finance and Leadership. He
also spends time teaching adults with learning difficulties, basic business and retail
skills. Paul has a Postgraduate Diploma in Business Administration from Lancaster
University, a Postgraduate Certificate in Education and Training from the University of
Huddersfield as well as a Certificate in Teaching English to Speakers of other
Languages from Trinity College, London.

5. WEBINAR
DEFENDING YOUR TRAINING BUDGET
Join us in this webinar with Paul Walsh, a leading HR Consultant and Trainer in the
region, to discuss, question and improve how we can defend our training budget.
When companies are looking to cut costs in this economic environment, invariably
the training budget becomes a target. We have consistently failed to measure the
return on training and, therefore, have no defence when our budgets are cut.
In this short Webinar we will have a brief look at Return on Training Investment.
It is a subject that has been discussed in HR circles since 1991 …. And we are still
struggling to design and implement an effective way of measuring our return.
The webinar will show various methods of obtaining ROTI and discuss the steps you
can take to get your department ready for defending your training budget in the
coming years

6. The Four Levels of Training Evaluation
Level 1 - Reaction
Level 2 - Learning
Level 3 – Behavior
Application
Level 4 – Business
Impact
Four Levels
of Training
Effectiveness

7. Available Data
• Financial Performance
• Productivity
• Turnover
• Sales
• Defect Rates
• Customer Satisfaction
• AND...........???

8. Exampl : Measuring Defect Results
0.00
50.00
100.00
150.00
200.00
Program :
Quality or
Excellence
Results after
3 months of
training, number
of defects per
Million dropped
to 80 units/day
120 units
80 units
Before training After training

9. 0.00
10.00
20.00
30.00
40.00
50.00
Example : Measuring Sales Results
Programme :
Sales Training
Results after 3
months number of
sales per
salesman increase
to 30 units/month.
20 units
30 units
Before Programme After Programme

10. ROI Model
Collect
Data
Isolate the
Effects of HR &
Training
Convert Data
to Monetary
Values
Calculate ROI
of HR &
Training
Tabulate
Program
Costs
Identify
Intangible
Benefits

11. Isolating the Effects of HR
Methods to Isolate
the Effects of HR
Using
Control Group
Trend
Lines
Participants
Estimate
Supervisors of
Participants
Estimate

12. Trend Lines Analysis
Jan Feb Mar Apr JulJunMay Aug
VolumeofSales
The difference
represents the
estimated impact
of initative.
Trend Projection
Actual sales performance
Training Takes Place

13. 1 Training Program 50% 70%
2 Change in Procedures 10% 80%
3 Adjustment in Standards 10% 50%
4 Revision to Incentive Plan 20% 90%
5 Increased Management Attention 10% 50%
6 Other - -
Percent
Improvement
Caused by
Confidence
Expressed as
a Percent
Factors Which Influenced
ImprovementNo.
Isolating the Effects of Training
Example of a Participant’s Estimation
• The confidence percentage is multiplied by the estimate (50 % x 70 %) to
produce a usable training factor value of 35 %
• This adjusted percentage is then multiplied by the actual amount of
improvement (post-program minus pre-program value) to isolate the portion
attributed to training
• The adjusted improvement is now ready for conversion to monetary values,
and used in the return on investment

14. The Training Budget
• An assessment of performance before and after the
training must take place.
• This must become part of the normal nomination
process.
• Start with the expensive training
• Ask what would happen if the training did not take
place?

15. RAISING SKILL LEVELS
• 0 No Ability
• 1 Little Ability
• 2 Understands the Skill
• 3 Performs with Guidance
• 4 Performs Independently
• 5 Can Coach Others

16. INTO METRICS
• Baseline Skill set before training.
• Reviewed at a suitable period after training.
• Improvement to be assigned a value or weight – eg an
improvement in a skill that is used 50% of an employees
time is given a weight of 0.05
• Economic value is salary * weighting.

17. METRICS EXAMPLE
• An employee is assessed before training at
level 3
• 3 months after training he is assessed at level 4
• The skill is used 50% of the time spent in work.
• His salary is $60,000 per year
• The training costs are $1,200 (total)
• Using the Phillips weighted approach - $60,000
x 0.05 = $3,000
• This is the value that training has added

18. SUMMARY
• The information to measure the impact of
“Hard” skills training already exists
• Soft Skills – using Philips equation gives us the
ability to compare training programmes and
their effectiveness.
• We only have to try!