Compensation for Participants
These costs comprise the salaries and benefits paid to participants for the time they are in a program. If the program is two days long, salaries and benefits for your participants for those two days are costs of the program.
Typically, HRD professionals do not know what individual people earn, but can obtain that information by asking the compensation department to provide a figure for an average salary paid to the various levels of people who will be attending. The average salary is then multiplied by the number of people attending the program, to derive a compensation estimate.
If the ROI ratio is less than one, then the training program costs more than it returns to the organization. Such a program needs to be either modified or dropped (there may, of course, be times when some noneconomic or legally mandated reason exists to continue a certain training program; even here, how- ever, if the ROI for the program is negative, some rethinking or reworking of the program is likely in order).
