Question

What is return on expectations (ROE)? How can it be used to show the costs and benefits of training without collecting statistics and conducting analyses? Explain its strengths and weaknesses compared to a cost-benefit analysis.

Answer 1

What is return on expectations (ROE)? How can it be used to show the costs and benefits of training without collecting statistics and conducting analyses? Explain its strengths and weaknesses compared to a cost-benefit analysis.

Return on expectation (ROE): Return on expectation is a behavioral training approach to determine the organization’s value over the training being provided. It validates the impact of training on business objectives. The training sessions are held to provide high return on expectation. So, if the company has a high return on expectation the company will be able satisfy their stakeholders.

Evaluating the cost and benefit of the training being provided is vital. In most of the techniques the cost and benefits of the training is shown in number. For example: The cost spent on providing the training, and profit earned using the skill being trained. The cost and benefits of training without collecting statistics or conducting analysis can be done through emphasizing on how well the trained individuals are performing. Improved performance is the only way to improve the operational activities and meet the organizational goals.

The strength of return on expectation over cost-benefit analysis is that, ROE is a means for future investment, whereas cost-benefit analysis is a means to justify the bottom line. The weakness of ROE is that it does not include statistics and is dependable on performance of the individuals.