Training Programs Evaluation Using ROI Model: Case of Saipa Company

Today most experts agree that in a highly competitive world, product lines or technology are not considered as competitive advantages for organizations, whereas, HR and manager’s ability to manage people in an organization brings about superiority for an organization among competitors. Therefore, the development of this valuable resource is considered to be vital for organization’s success. Staff training and Development constitutes a strategic and important issue for an organization and through it organizations’ human capital is transformed into permanent capital. While the importance and necessity of designing and implementing training in organizations has become popular and well accepted, what has become extremely important is the effective evaluation of training programs. In the present study we used the return on investment model to assess training courses at Saipa Company’s Maintenance unit. Results showed that the rate of return on investment for these courses was 35.6%. In addition, reduction in employee transfers, increased employee job satisfaction, increased customer satisfaction, reduction in employee absenteeism, increased employee progress, reduction in employee turnover, increased employee engagement and decreased rate of occupational accidents has brought about intangible benefits for the organization.