ROI gives way to ROE

By Brendan Nagle
|Canadian HR Reporter|Last Updated: 07/15/2002

In the retail sector, as in many other industries, the effects of training are being measured in new ways. The classic return on investment or ROI is being supplanted by return on expectation or ROE.

ROI is a difficult thing to measure reliably. An effective attempt to understand the degree to which a single training event affects the bottom line directly is a costly and complex affair involving not just the learner but also instructors, supervisors, managers and accountants.

The process can take a year or more to complete, and when it’s over, the results are questionable since the improved performance could just as easily have been due to a shift in the company’s competition or market share.