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Assessing the value of employee training.

R Blomberg1, E Levy, A Anderson

  • 1Training and Development, Rochester Methodist Hospital, Minnesota.

Health Care Management Review
|January 1, 1988
PubMed
Summary

Evaluating employee training programs is crucial due to limited economic resources. Cost-benefit analysis provides a framework for assessing management development initiatives and their return on investment.

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Area of Science:

  • Business Administration
  • Human Resource Management
  • Organizational Psychology

Background:

  • Economic constraints necessitate efficient allocation of resources for employee development.
  • Effective training programs are vital for organizational success and employee growth.
  • Evaluating the financial impact of training is essential for strategic decision-making.

Purpose of the Study:

  • To highlight the importance of cost-benefit assessment in employee training programs.
  • To review the role of evaluation in the training process.
  • To apply cost-benefit analysis specifically to management development programs.

Main Methods:

  • Literature review on training evaluation methodologies.
  • Framework analysis of cost-benefit assessment principles.
  • Case study application to management development programming.

Main Results:

  • Cost-benefit assessment is a critical tool for justifying training investments.
  • Evaluation metrics provide data for financial impact analysis.
  • Management development programs can be effectively evaluated using cost-benefit models.

Conclusions:

  • Implementing cost-benefit assessment enhances the strategic value of employee training.
  • Rigorous evaluation ensures that training investments yield tangible economic benefits.
  • Financial scrutiny of management development programs optimizes resource utilization and program effectiveness.

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