Guidance when Using the Benefit to Cost Ratio

How to take your use of EPI one step further

Present a metric that points to financial benefits of your training efforts

Then consider the Benefit to Cost Ratio, an ROI indicator from a finance perspective that is simply the monetized benefit divided by the cost of the training.

Benefit to Cost Ratio (BCR) is a proxy measure based on the extent that training impacts an individual’s performance or productivity compared to the costs. Training helps make someone better at one or more parts of their job, which allows them to work faster, better, etc. This improvement is quantified and compared against their salary to represent the “benefit.” Although the BCR is not necessarily an indication of hard dollars being brought in through revenue, it is a good proxy measure for the extent training is impacting individual and business performance, relative to the cost.

Where can I find my data?

Review MTM's Executive Summary Report.

How could I present the data?

The BCR data point - such as “7.05” - is saying that for every dollar spent, roughly 7 dollars were returned in benefit.

See more examples of presenting this data in the Stakeholder Presentation Template.

Review the attached presentation for more detailed guidance:

Benefit to Cost Ratio Presentation (PPT document)