Challenges Of Measuring Return On Investment Of Training And Development Programmes At Christian Mission Aid In Nairobi, Kenya

Abstract

The importance of measurement of return on investment of training and development programmes is to show the actual results and contributions in an accurate and credible way. It also assists in prioritizing and expanding training and development areas by finding out which programmes contribute the most to CMA’s output. The objective of the study was to establish the challenges of measuring return on investment of training and development programmes. The study focused on Christian Mission Aid in Nairobi Kenya and rate of response was seven. The data was collected using interview guide and analyzed by content analysis. Training and development programmes at CMA have equipped employees with relevant knowledge, skills and abilities to perform their responsibilities and roles effectively. The methods used in training and development programmes include both on-the-job and off-the-job trainings. Training needs analysis exercise is conducted to find out employees’ performance gap. Measurement of ROI in training and development programmes are benefit cost ratio, ROI percentage, break even time and payback period methods. The study found out that the challenges of measuring ROI of training and development programmes are isolating the effects of training and development programmes, converting behavioural change to financial terms, lack of expertise to measure ROI,HR department as an income generating and not expenditure centre, cost and time consuming and benefits of ROI. The study concluded that the SMT ought to set specific targets for employees’ performance appraisal, divide performance in qualitative and quantitative indicators, train managers on the best ROI method, SMT to support HR department activities, allocate time and financial resources as well as link training and development programmes to the impact of the organization’s objectives. The study recommends that SMT should set specific targets to measure actual performance, ROI process to link programmes measurements to TNA, establishment of recognized method of ROI measurement, policy formulation in the areas of training and development programmes should be revised in order to incorporate the implementation of measurement of ROI in training and development programmes