By CorporateTraining360 Editorial Team Further reading: Harvard Business Review; eLearning Industry
Frequently Asked Questions
What is the formula for training ROI?
The Phillips ROI formula is (Benefits – Costs) ÷ Costs × 100 = ROI%. For example, if a program costs $25,000 and delivers $100,000 in measurable business gains, your ROI is 300%.
How long does it take to see a return on training investment?
It depends on the program. Simple technical training can show results in a few weeks, while leadership or behavior-change programs typically need 6 to 12 months before tangible outcomes appear.
Can you measure ROI for soft skills training?
Yes, but pair it with a qualitative approach. Track observable behavior changes, manager feedback, retention, and engagement scores, then convert improvements into estimated dollar values using your own internal data.
What’s the difference between Kirkpatrick and Phillips?
Kirkpatrick’s model has four levels: Reaction, Learning, Behavior, and Results. Phillips adds a fifth level for financial ROI, which converts results into monetary benefits and compares them directly against total program costs.