Learning ROI | How to Measure with the Phillips Model?

A common scenario in almost every organisation goes as follows. You have put in all the effort and resources into developing and managing the training for the employees. But now, when it comes to the question of what all that value would look like if we put it into numbers, stating something exact is not easy. 

The challenging thing is that some of the factors are tangible, while some are intangible. So, how do you put that all together and understand the ROI of your learning and development efforts? 

In this article, we will find the answer to that exact question using the Philips Model. It not only helps to understand the impact of the training but also the ROI itself. 

What is ROI in learning and development?

When we talk about ROI in learning and development, it is not only about money in and money out. Yes, on the one hand, we are looking at the return your organisation gains compared to what it spent on training. In simple terms, ROI shows up as a formula:

(Gains from learning – Cost of learning) ÷ Cost of learning × 100

But on the other hand, there is more to it than just finding this percentage. You might ask yourself questions like

• Are the ROI results you got enough?
• Do they truly reflect the value and change of the training?
• Is there something you can do better to achieve higher results within the scope of the training? 

For you not to get confused with all that, we need to differentiate between the impact of the training and the actual ROI. Impact is about what you can see on the ground. Do people communicate better after the workshop? Do managers coach more often?

But ROI is when you take those changes and turn them into measurable value, sometimes financial, sometimes not.

Depending on what ROI is in your case, the way you measure it would also be different. For example, is it the boost in productivity after a new process is introduced? Or is it simply the profit your business makes at the end of the year?

You might just have a profitable year because of factors such as market performance, not just the training. 

In their interview, the co-founder of Expression for Growth shared how they approach measuring the ROI. And he highlighted the importance of measuring the behavior. 

“One process that we always do with organizations with whom we partner is to have a conversation about what they want to change and what measures they want to change. For example, you want people to change the language they are using around a certain topic, or you want to see coaching in action”. 

Alex Selwood

Co-founder Expression for Growth 

So, what also matters is how you measure that behaviour change and observe if it is repeatable. Only after you have this framework clearly written down can you observe your return on investment. 

What is Philips' ROI method? 

The Phillips ROI Method is a five-level framework that helps you measure not only the outcomes of training but also its return on investment. It builds on the well-known Kirkpatrick Model by adding a final step that converts results into monetary value. This framework was published in the book “Return on Investment in Training and Performance" in 1980. 

While the Kirkpatrick Model stops at showing whether training worked, the Phillips Model goes one step further. It puts a number on the value of training by comparing costs with business impact. 

So, what can you measure with it? The framework focuses on

• How the participants respond to the training
• What knowledge or skills did they gain
• How much they apply what they learned back at work
• The financial return compared to the cost of training

Let’s look at each of these levels in turn and see how they help you measure ROI step by step. 

How to measure the learning ROI on 5 levels?

For each level of Philips' ROI method, we will analyze what it measures, how you can collect data for that, and provide an example. 

#1 Reaction

What do you measure?

The first level of the Phillips Model looks at how your people feel about the training. It measures their immediate reaction. Was it useful? Was it engaging? Did it meet their expectations? This matters because if your employees do not buy into the training at this stage, the chances of them applying it later go down fast.

What methods can you use to collect data?

• Post-training surveys
• Feedback forms (digital or paper)
• Quick polls during or after sessions
• Short interviews or focus groups 

The questions you include in the polls and surveys should cover aspects such as their satisfaction with the training material, learning experience, and training delivery. 

• Example 

A logistics company rolled out a time-management workshop for 85 team leaders. The aim was to help them plan shifts better, cut down overtime, and improve how they balance workloads across their teams.

After the workshop, participants filled in a quick survey on the training. The results came in like this (on a 5-point scale):

• Trainer delivery: 4.5
• Usefulness of content: 3.8
• Engagement during session: 4.2
• Overall satisfaction: 4.0 

The numbers showed that while the trainer kept the group engaged and the delivery landed well, the content did not feel fully practical for their daily challenges. The L&D team decided to follow up with a set of real-world planning templates and examples from within the company, so future sessions felt more grounded in their day-to-day work.

#2 Learning

What do you measure? 

At this stage, you measure whether the training actually delivered the outcomes that you set. So, we move from participant feedback to the actual results you got. 

What methods can you use to collect data? 

• Pre- and post-training tests or quizzes
• Practical exercises and assignments
• Problem-solving tasks

If you are using an LMS like Uteach, the learning results are easy to track. For example, you can access the quiz reports to see the number of right and wrong answers, duration, points, etc. 

• Example 

A retail company ran a product knowledge program for 120 store associates to help them answer customer questions with confidence and increase upselling. Before the training, associates completed a short online quiz. The average score was 62%. After the program, they received the final quiz, and the average went up to 86%.

The results showed clear knowledge gains, but when broken down by topic, the lowest improvement was in the “handling objections” section. Based on this, the L&D team decided to add more role-play practice in that area for the next group of learners.

#3 Application and implementation

What do you measure?

However, the opposite scenario is also possible when the learners do not achieve the outcomes set for the training. On the level of application, you discover how they managed to acquire the necessary skills, and if they did not, what were the causes of it. 

So to speak, you measure knowledge, skills, or attitudes gained through the program.

What methods can you use to collect data? 

• Observation checklists completed by managers
• Follow-up surveys for participants and their supervisors
• Performance monitoring (KPIs tied to new skills)
• On-the-job assignments or projects 

• Example

A software company delivered a leadership program for 15 mid-level managers, focusing on delegation and team motivation. Three months later, the evaluation combined 360-degree feedback with performance reviews.

The results showed that

• 70% agreed that their delegation skills improved
• 80% of the peers agreed that their manager was successful in keeping the team motivated 

#4 Impact

What do you measure? 

At this level, you move beyond behavior and look at the bigger picture. Business impact is about what changes in the organisation as a result of training. Does the company see measurable improvements in performance, efficiency, or customer results?

What data do you need to collect?

• Performance metrics tied to training goals (sales closed, error rates, customer satisfaction)
• Business KPIs before and after training
• Comparison of trained vs. untrained groups
• Quality indicators (complaints resolved, defects reduced, etc.)

• Example

An organisation wanted to know if their sales training program was truly moving the needle or if rising sales were mainly due to market conditions. To find out, they compared two groups: sales reps who completed the training and those who did not.

Over a three-month period, the results were clear:

• Trained sales reps closed 28% more deals than the untrained group
• Average deal size for trained reps increased by 15%
• Untrained reps showed little change compared to the previous quarter

#5 Return on investment 

What do you measure?

This is where you put numbers on the table and calculate the return compared to the cost of training. So to speak, the last level is one of the key differentiators between the ROI measurement frameworks of Philip and Kirkpatrick. 

What data do you need to collect?

• Direct financial benefits (sales revenue, production gains, cost savings)
• Training costs (materials, facilitation, travel, employee time)
• Comparison data from a control group
• Any other costs linked to implementing the training

• Example

A manufacturing company introduced a training program for assembly line supervisors to improve quality control and reduce defects. To measure ROI, they compared the performance of trained supervisors with that of those who had not taken the program.

The benefits came to about $2,940 per participant in reduced rework and higher output. The total cost of training, including facilitation, materials, travel, and time away from the line, was $2,100 per participant.

ROI = (2,940 – 2,100) ÷ 2,100 × 100 = 40%

So, the return for each participant is 40% which is quite good. 

FAQ

What metrics do I need to measure to get the learning ROI? 

To measure learning ROI, you need to track both tangible and intangible metrics. Tangible metrics are the ones you can put numbers on easily. Think sales figures, error rates, production output, customer satisfaction scores, or time saved. These directly show how the training affected business results.

“Tangible metrics are easy to develop and track, which makes them an appealing option for a lot of professionals. Some common tangible metrics, both in terms of costs and benefits, include things like costs associated with learning needs, assessment design, development implementation, and learning evaluation costs. However, they aren’t always indicative of success. In some cases, such as when it comes to employee engagement, intangible data can trump tangible information.” 

The L&D Academy

Intangible metrics capture the softer but equally important outcomes. These include employee engagement, teamwork, communication skills, problem-solving, and confidence levels.

“Intangible metrics are the most difficult to measure, but they are also one of the most important ones. They include the extent to which your learners feel that the training has helped them improve their work performance in the work environment.” 

The L&D Academy

What are the 4 types of training evaluation? 

The 4 types of training evaluation are included in the framework of Kirkpatrick’s Model. They include: 

• Level 1: Reaction. Measures how participants feel about the training. Did they find it engaging and relevant?
• Level 2: Learning. Measures what participants actually learned. Did they gain new knowledge, skills, or attitudes?
• Level 3: Behavior. Measures whether participants apply what they learned back on the job. Are their actions changing in the workplace?
• Level 4: Results. Measures the impact on business outcomes. Did the training improve performance, productivity, or revenue?

How do you calculate ROI for L&D? 

Calculating ROI in learning and development means comparing the financial benefits of training with its total cost. The formula is simple:

ROI = (Benefits – Cost of Training) ÷ Cost of Training × 100

Start by identifying the benefits your training produced, like increased sales, higher productivity, or cost savings. Then add up all training costs, including facilitation, materials, travel, and the time employees spent away from their work. Subtract the cost from the benefits, divide by the cost, and multiply by 100 to get a percentage.

How Uteach helps you measure the ROI for your business  

Measuring the ROI of your training programs does not have to be complicated. LMS platforms like Uteach simplify the process by collecting and organizing all the data in one place. 

You can track participation, test results, skill improvements, and behavior changes over time. This makes it easier to see how your training connects to business outcomes.

With Uteach, you can monitor learning progress and generate reports that show knowledge and performance gains. If you want to understand the value of your training more clearly, book a demo with a Uteach specialist to see how the platform supports your learning and development goals.