One of the core tenets of a changing professional landscape is the need for effective employee learning and development programs. In volatile work environments, where industry demands are constantly evolving, employees need to keep pace with the change. To address the knowledge and skills gaps, training programs become essential.

  1. History Of The Philips ROI Model

  2. Development Of The Philips ROI Model

  3. Implementing Change In Your Organization

While effective training programs and tools are needed for employee development, there should be checks and balances to measure the effectiveness as well. Just like businesses gauge the return on investment (ROI) to gauge business success, training evaluation can be done with the help of the Jack Philips ROI model.

History Of The Philips ROI Model

Training is a much-needed investment for any organization as it helps drive productivity, boost revenue and meet strategic goals. Employee training tools are, therefore, essential for business growth and profitability. Over time, several training evaluation models have emerged that helped investigate and analyze the effectiveness of training programs. The Jack Philips ROI model is one such training framework that helps analyze the success of learning and development programs.

However, to understand the Philips ROI model, we need to consider the Donald Kirkpatrick training evaluation model first. The ROI model proposed by Philips is an extension of the Kirkpatrick model. Kirkpatrick was an American professor who provided a practical and flexible solution for designing employee training through his framework. Here is a glimpse of the Kirkpatrick model of evaluation:

  • Level 1: Reaction

It’s important to establish the initial reaction of a participant to a training program. Was the training informative? Was it useful? Was the trainer engaging? Was the information presented in an easy-to-understand manner?

  • Level 2: Learning

Assessing what employees have learned and mapping or benchmarking learning outcomes are essential in measuring the skills of the training cohort against those employees who haven’t gone through the training yet.

  • Level 3: Behavior

Around three to six months after training, it’s time to test if it has resulted in the behavior change that was hoped for. Some of the methods include observation, online evaluation, peer feedback and supervisor feedback.

  • Level 4: Results

This is where an organization evaluates whether the training has achieved the desired outcomes. It’s the toughest and most important level.

Development Of The Philips ROI Model

Jack J. Philips, a world-renowned expert on measurement and evaluation and chair of the ROI Institute, suggested that for a training program to be implemented successfully, the ROI should be calculated. Therefore, his Return On Investment model used for measuring the success of employee training evaluation revised the Kirkpatrick model and incorporated a fifth level. Let’s take a look at the sequence of this model:

  • Level 1: Reaction

The first level is to gauge the reaction of participants. Feedback can be collected through questionnaires and short surveys to assess whether learning conditions were in place.

  • Level 2: Learning

The second level helps evaluate whether learning took place or not. Similar to the Kirkpatrick model, participants are provided with multiple choice tests or quizzes before or after training.

  • Level 3: Application And Implementation

The third level assesses what participants have learned by looking at workplace behavior. This helps track whether training has translated into necessary changes.

  • Level 4: Impact

Kirkpatrick’s fourth level focuses on results but Philips’ model looks at impact. It helps identify whether external factors, other than training, were instrumental in driving change.

  • Level 5: Return On Investment

The fifth level was added to carry out a cost-benefit analysis and check whether the training programs or tools were effective in driving desirable outcomes.

In a nutshell, the ROI model helps organizations measure if the amount of money and resources they dedicated toward employee development have produced measurable returns or not.

Implementing Change In Your Organization

Several organizations today have embraced the need for continuous learning and development. The Philips ROI model is one of the instruments to drive change. However, if your organization wants to keep pace with current industry needs, you need to identify strong leaders who will encourage the holistic development of employees.

Harappa’s High Performing Leaders Program is designed for enterprises that want to drive transformative behavioral outcomes among employees. Learners will not only acquire new behaviors but also develop the right mindset to drive innovation and champion out-of-the-box solutions. This unique blended learning program, trusted by 50+ leading organizations, will help your workplace achieve peak performance. Schedule a demo to find out!

Explore Harappa Diaries to learn more about topics such as Outcome-Based EducationOn-The-Job Training TechniquesOff-The-Job Methods and the Necessity Of Employee Training that will help organizations tap into their employee’s potential.

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