Level 5: ROI

Return on Investment

Phillips’s ROI approach has been referred as the 5th level of evaluation. It certainly plays in an important role, because learning budgets can be determined by how much the investment is worth. Sadly, learning tends to be regarded as an expense, when it should be considered an investment. The reason that learning is regarded as an expense is because most training organizations do not report on business results or return on investment for training. Once a training organization begins reporting on financial returns, then they are looked upon as an investment. Why would anyone not spend money on something that has been proven to return that money and then some.

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