Methods of Evaluating the Costs and Benefits of Training in the Distributive Industry in Great Britain

Abstract

The research took place under the sponsorship of the Distributive Industry Training Board, and a background to the distributive industry and the D.I.T.B. is described. Various reasons for assessing the value of training are discussed, and criteria are established for choosing the training to be studied. The place of cost/benefit assessment is considered in the context of accepted models of evaluation, and it is found that the two main problems involved are the measurement of results of training, and the contamination of these results by other factors; various other difficulties are also identified. A model is developed for comparing the costs and benefits of training, with a view to estimating optimum levels of training, and a system described for costing and budgeting training in distribution. Previous research into cost/benefit assessment of distributive training is described, and the applicability of the model to these studies is tested. Details are then given of the research carried out into training in bacon preparation, customer relations, management development, sales and vocational preparation, and into the setting of training priorities. The model is tested in these areas, and found to be applicable, though with certain reservations. The research shows that training can be cost effective in certain instances, but that every activity needs to be evaluated individually, and that various principles must be borne in mind by the evaluator. Thus not all results will be identified, estimation should be carried out conservatively, statistical approaches are seldom appropriate, and greater management motivation for the activity is required. A practical approach to evaluation for management is described, together with its feasibility in the distributive industry. Finally, evaluation is justified as an activity, by reference both to previous literature and to the case studies of this research; and recommendations are made for making these results known, and for carrying out further studies.