Research On Return Of Training Investment

As knowledge economy comes to our society, the essence of competition transfers from capital to human resources. As one of the important tool for raising the quality of human resources, training became a management hot topic and the core of raising efficiency. Although recognizing the importance of training, when Human resources department faced with all sorts of training courses, how to choose become a difficult decision. It is very difficult for people to measure the cost and benefit of training, this results into the hardness of providing figures to measure the rationality of the return of training investment. First, this thesis introduces some theories of training effect evaluation, then from practice aspect, it introduces some measure models for the return of training investment, and discuss the problems of these models. Second, this thesis analyzes the traits of training investment and illustrates three classes of employees based on professional level; then this thesis analyzes the cost and benefit of training investment, and raises the common model for calculating the return of training investment. Third, this thesis analyzes the specific model for each class and proposes how to increase the return of training investment. Last, this thesis uses this model in a true case to show how to use it in practice and points out the limitation of this thesis.