In Search of the Holy Grail: Return on Investment Evaluation in Human Resource Development

Abstract

The problem and the solution. Much of the human resource development (HRD) evaluation literature focuses on the Kirkpatrick four-level approach and emphasizes the importance of measuring the return on investment (ROI) of HRD initiatives or programs. This article argues that, in many cases, ROI does not provide the kind of information needed by decision makers. What is needed is a systems model that examines the effect of organizational and environmental factors on the intended outcomes of an HRD initiative or program. Such a model can help to frame any evaluation, including one that focuses on ROI.