Asked by zenish neupane on Sep 29, 2024

If a training program costs $2,000 per employee and the benefit of the program is $5,000 per employee, then the ROI is 1.50, or 150 percent.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, comparing the magnitude and timing of gains to costs.

ROI

A metric used to evaluate the efficiency or profitability of an investment, comparing net gain to initial cost.

  • Familiarize oneself with the association between benefit-cost ratio and return on investment in the appraisal of training endeavors.
  • Evaluate the utility of training strategies and deduce their significance in decision-making contexts.