In a world where training drives business strategy, measuring its impact is crucial. Dr. Ajit Kumar Kar outlines three practical approaches, ROI, ROTI and ROE, that help organisations justify investment, track outcomes and align learning with performance. Discover how to make training accountable, strategic, and report well for future investment.
In today’s volatile business landscape, training is no longer optional, it’s a strategic enabler. Companies invest in training for a number of reasons:
- Bridge skill gaps (digital, managerial, technical, behavioural)
- Boost productivity and performance by reducing errors and improving speed
- Increase engagement and retention as employees stay longer when growth is supported
- Align people with strategy as training ensures culture and capability match business goals
Training fuels people’s growth to match the pace of the business by equipping them with the right skills, knowledge, and mindset to adapt to evolving challenges. As organisations innovate, expand, and compete in dynamic markets, well-structured training ensures that employees not only keep up but also contribute actively to driving progress. It builds confidence, enhances performance, and creates a workforce that grows in tandem with organizational goals, ensuring sustained success.
The challenge: Measuring effectiveness
CEOs and HR leaders often ask questions around “What did this training deliver?” and “Was the time and money worth it?”. This makes it essential to measure training impact logically, through approaches such as ROI, ROTI, and ROE, all explained below.
ROI – Return on Investment
Definition: Measures the financial return of training compared to its cost.
Formula:
Steps to calculate:
- Identify benefits (eg sales increase, cost savings, productivity gains)
- Quantify benefits in monetary terms
- Subtract training costs (facilitators, materials, employee time)
- Apply formula
Example:
- Training Costs = £500,000
- Benefits (productivity gain, reduced errors, etc.) = £1,500,000
Logic: ROI answers the question “Did the training make business sense financially?”
ROTI – Return on Time Invested
Definition: Measures if the time spent in training was worthwhile for participants.
Method: Usually measured through surveys/feedback forms at the end of training.
Formula (simplified):
Scale example: (1 = Not worth it, 5 = Highly worth it)
If 80% participants rate the session 4 or 5 then you have high ROTI.
Logic: ROTI answers the question “Was employees’ time used effectively?”
ROE – Return on Expectations
Definition: Assesses whether training met stakeholders’ strategic expectations, which isn’t always measurable financially.
Method:
- Define expectations with leaders before training (eg improve collaboration, leadership readiness, digital adoption)
- Translate expectations into measurable outcomes (KPIs, survey scores, observation, business metrics)
- Assess post-training impact against these outcomes
Example:
- Expectation: Improve cross-department collaboration
- Pre-training employee survey score = 62%
- Post-training employee survey score = 78%
- ROE achieved
Logic: ROE answers the question “Did the training deliver on the purpose it was designed for?”
Model comparisons
| Metric | Focus | Key Question Answered | Example Outcome |
| ROI | Financial Return | Did the training generate measurable business results? | Higher sales, reduced errors |
| ROTI | Time Value | Was the time invested in training worth it? | Participants report 90% satisfaction |
| ROE | Strategic Impact | Did the program meet expectations of leaders & learners? | Improved teamwork and innovation |
Think of this as a three-level measurement model:
- ROI = Financial impact (bottom line)
- ROTI = Time effectiveness (learner’s view)
- ROE = Strategic alignment (leader’s view)
Measuring only one is incomplete as real training impact is proven when all three are addressed. Training is not an expense, it’s an investment in people and performance. But to justify and maximise this investment, companies must measure outcomes systematically.
- ROI proves financial returns
- ROTI ensures training time is well spent
- ROE confirms alignment with expectations
Together, they provide a logical, 360° view of training effectiveness, making learning and development initiative a true engine of growth, engagement, and transformation.
Dr. Ajit Kumar Kar is Dean, Management Studies and the Regional College of Management, Bhubaneswar and Practice Head – People & Culture and The MindMasters
