What Is Return On Investment (ROI?

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Return on Investment (ROI) and Training
Return on Investment (ROI) is the most recognized form of measure used by business to determine the worth of that business. Return on Investment is the analysis of total benefits minus the total cost divided by total cost multiplied by 100 to give you a percentage. This indicator then tells the organization if the investment was worthwhile. Trainers and training department use ROI as a justification for their existence. This paper will look at return on investment and what factors are used in the calculation of ROI by the trainers, training department and the organization, in turn by section, with a conclusion to end.
Trainers’ evaluation using ROI
Trainers need to verify that their students have grasped the training and that the time
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Trainer cost, manuals = 10@ $200= $2000, 3 x10 students= 30 tests @ $50=$150, total cost $2150 budget available $3500. Using the testing information of the 10 students the trainer in conjunction with the metric of students’ pre training performance (50 pieces per-hr.) Organization standard is 100 pieces per- hr.) Production cost is $10 per-hour wages, selling price per piece $20. The 10 students’ pre training was 50 pieces per hour, Organization standard 100 per hour@ $10 per-hour costs $1000 to produce, sells for $20, at 100 per hr. = $2000 - $1000= $1000 x10= $10,000 potential profit, at standard rate. At 50 per hr.at $10 per-hr. cost =$500 sells at $20 = $1000, $1000-$500=$500x10= $5000 potential profit. Post-training had 7 students’ producing 95 pieces per-hour and 3 students’ producing 75 pieces per-hour. The seven (7) students producing 95 pieces at $10 cost = $950, selling at 95x$20 =$1900, $1900-$950=$950 Profit x7 =$6,650. These 7 give the trainer a 95% return on training, the Three (3) producing 75 pieces per hour at $10 = $750

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