5 min read

How to master training ROI measurement for your team

Picture of Compono Compono February 21, 2026

Training ROI measurement is the process of calculating the financial and operational value generated by employee development programmes against the total cost of investment. To truly understand if your learning initiatives are working, you need to look beyond completion rates and start measuring tangible behavioural changes and business outcomes. Moving from 'gut feeling' to data-driven insights allows HR leaders to secure larger budgets and align people development with the broader company strategy.

Key takeaways
Effective training ROI measurement requires baseline data collected before the programme begins to track genuine improvement.
The Phillips ROI Model adds a fifth level to Kirkpatrick’s framework, specifically converting business impact into a clear financial ratio.
Measuring 'soft' skills like communication is possible by tracking secondary metrics such as reduced conflict or increased project speed.
Successful L&D reporting focuses on business outcomes, such as reduced turnover or increased sales, rather than just 'smile sheets'.

The challenge of proving development value

Most People leaders have been there – you’ve rolled out a brilliant new leadership programme, the feedback is glowing, and the energy in the room was electric. But when the CFO asks for the specific impact on the bottom line, the conversation gets a little quieter. The struggle with training ROI measurement isn't a lack of results; it's often a lack of a structured framework to capture them. Without a clear way to link learning to performance, training is often viewed as a cost centre rather than a value driver. In a modern workplace, simply ticking a box for compliance or 'upskilling' isn't enough. We need to prove that the time employees spend away from their desks is actually making them better at their jobs and making the business more resilient. At Compono, we believe that development should never be a guessing game. When you understand the natural work preferences of your team, you can tailor training that actually sticks. By using tools like the The Evaluator assessment, you can identify which team members are naturally inclined toward analytical growth and who might need a different approach to stay engaged.

Moving beyond the Kirkpatrick Model

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For decades, the Kirkpatrick Model has been the gold standard for training evaluation. It tracks reaction, learning, behaviour, and results. While this is a fantastic foundation, modern training ROI measurement often requires the 'fifth level' – the actual return on investment. This is where we translate those 'results' into hard currency. Level four might tell you that customer service scores improved by 15% after a workshop. Level five asks: What is that 15% worth to the business in terms of customer retention and lifetime value? To get this right, you need to isolate the effects of the training. If sales went up, was it because of the new training, or did the market just improve? Using control groups or trend line analysis helps ensure your data is honest and reliable. When we look at the Compono Develop module, we focus on this exact alignment. By mapping learning pathways to specific skill gaps identified in performance reviews, the 'results' become much easier to track. You aren't just training for the sake of it; you are solving a specific business problem that already has a metric attached to it.

Identifying the right metrics for soft skills

One of the biggest hurdles in training ROI measurement is dealing with 'soft' skills. How do you put a dollar value on empathy, better listening, or improved collaboration? The trick is to stop looking for a direct 'empathy-to-dollar' link and start looking at the friction points those skills reduce. For example, if you train your The Coordinators in advanced project management and emotional intelligence, you should see a decrease in 're-work' or project delays. You might see a drop in voluntary turnover because the team feels better supported. These are 'hard' metrics born from 'soft' skills. By tracking the cost of hiring a replacement – which can be up to double an employee's salary – a small increase in retention provides a massive ROI. We often see this in our work with culture and engagement. When a team understands their work personality, conflict decreases. If you can measure the amount of time managers spend mediating disputes before and after a team-building intervention, you have a clear, time-based ROI. It’s about being creative with the data you already have in your HRIS or project management tools.

Calculating the final ROI formula

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Once you have isolated the benefits, it’s time for the math. The standard formula for training ROI measurement is: ((Total Benefit – Training Costs) / Training Costs) x 100. It sounds simple, but the 'Total Benefit' is where most people stumble. You must include everything from increased productivity and saved time to reduced waste and improved safety records. On the 'Costs' side, don't just include the invoice from the training provider. You need to factor in the 'opportunity cost' of the employees' time, the administrative hours spent organising the event, and any materials or travel involved. Transparency here is vital – if you under-report the costs, your ROI figure will look inflated and lose credibility with senior leadership. At Compono, we’ve spent over a decade researching what makes teams high-performing. Our Culture, Engagement & Performance Model shows that when training is aligned with an individual's natural strengths, the 'Total Benefit' part of the equation skyrockets. People learn faster and apply that knowledge more consistently when it feels like a natural extension of who they are.

The role of baseline data and timing

Timing is everything in training ROI measurement. If you only measure results a week after the programme, you’re measuring 'recency bias', not long-term value. True ROI is found in the 'maintenance' phase – three to six months after the training has ended. Has the new behaviour become a habit, or have people slipped back into their old ways? This is why baseline data is non-negotiable. You cannot prove improvement if you don't know where you started. Before any training begins, record the current state of the metrics you hope to change. Whether it’s the number of support tickets closed per hour or the engagement score of a specific department, that starting number is the most important part of your final report.

Key insights
Always calculate the opportunity cost of employee time to ensure your training ROI measurement is accurate and credible.
Isolate the effects of training by comparing trained groups against non-trained groups to account for external market factors.
Focus on 'lagging' indicators like retention and 'leading' indicators like skill competency scores to get a full picture of value.
Use a consistent framework across all departments so that leadership can compare the effectiveness of different development initiatives.

Where to from here?

Explore: Compono Platform
Talk to an expert: Book in a 15-minute chat to get a walkthrough of how Compono can help you measure and improve team performance.

Frequently asked questions

How do I start measuring training ROI if I have no data?

The best way to start is by choosing one small, high-impact programme. Identify one specific metric it is supposed to improve – like sales calls made or error rates – and record that number for 30 days before the training starts. This creates your baseline without needing years of historical data.

What is a 'good' ROI for employee training?

While it varies by industry, any positive ROI is a win. However, many professional development programmes aim for a 100–200% return. The key is not just the number, but the consistency of the measurement and the story it tells about team growth.

Can I measure ROI for mandatory compliance training?

Yes, but the 'benefit' here is usually 'cost avoidance'. You measure the ROI by looking at the potential cost of fines, legal fees, or insurance premium increases that are avoided by having a fully compliant and trained workforce.

How often should I report on training ROI?

For major initiatives, a 90-day post-training report is standard. This allows enough time for the new behaviours to impact business results while keeping the momentum of the programme fresh in the minds of stakeholders.

Do I need expensive software for training ROI measurement?

Not necessarily. While platforms like Compono help by automating the collection of engagement and performance data, you can start with simple spreadsheets. The most important 'tool' is a disciplined process for collecting data before and after the training occurs.