Return on investment

Calculating whether the mentor/mentee training has been cost-effective is a difficult process. Jack J. Phillips is well known in the area of Return On Investment (ROI) evaluations. He describes a basic five-step formula for calculating ROI.

Step 1

Collect level-4 evaluation data by asking, ‘Is there a change in job performance that is positive and measurable?’

Step 2

Isolate the effects of the training from other factors that may have contributed to the results.

Step 3

Convert the results to monetary benefits.

Step 4

Total the cost of training.

Step 5

Compare the monetary benefits with the costs. The non-monetary benefits can be presented as additional, though intangible, evidence of the programme's success.

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