Phillips ROI Methodology

The Phillips ROI Methodology is a training evaluation framework that extends the Kirkpatrick Model by adding a fifth level focused on measuring the financial return on investment (ROI) of learning programs. Developed by Jack J. Phillips, the model helps organizations quantify the business value of training by comparing program benefits to costs.

Overview

The Phillips model builds on the four levels of the Kirkpatrick Model and introduces a fifth level to address a critical question: Was the training worth the investment? Each level represents a deeper layer of evaluation, moving from participant feedback to financial impact.

Each of the five levels are explained below:

Level 1: Reaction

Level 1 gathers learners’ immediate impressions of the training experience. This includes how satisfied participants were, whether they found the content relevant to their roles and how engaged they felt during the program. While this level does not measure learning or performance outcomes, it provides important context for understanding the overall effectiveness of the experience and identifying areas for improvement. Consistently low reaction scores may indicate issues with content quality, delivery methods or alignment with learner needs. Because it is relatively easy to collect through surveys or feedback tools, this level is widely used across training programs.

Level 2: Learning

Level 2 focuses on the degree to which participants gained the intended knowledge, skills and attitudes as a result of the training. This includes increases in knowledge, improvements in skills and, in some cases, shifts in attitudes or confidence. Measuring learning helps determine whether the program achieved its intended objectives and whether the content and instructional design were effective. Organizations often use assessments such as quizzes, simulations, or pre- and post-training comparisons to evaluate progress. Insights from this level can guide refinements to course design, ensuring that learning outcomes are clearly defined and achieved.

Level 3: Behavior

Level 3 evaluation examines whether participants apply what they learned once they return to the workplace. This level looks at changes in on-the-job behavior, performance and decision-making over time. Measuring behavior change can be more complex than earlier levels because it requires observation after the training has concluded and may be influenced by factors such as manager support, workplace culture or access to resources. Data is often gathered through manager feedback, peer input, self-assessments or performance metrics. A lack of behavior change does not necessarily mean learning did not occur; it may indicate barriers to application that need to be addressed.

Level 4: Results

Level 4 measures the broader impact of training on organizational outcomes. This includes tangible improvements such as increased productivity, higher quality output, reduced costs, improved efficiency, stronger employee retention or growth in revenue. The goal is to connect learning initiatives to business performance and demonstrate that training contributes to organizational success. This level requires careful selection of metrics and, ideally, comparison of performance data before and after the training. One of the key challenges is isolating the effects of training from other variables that may influence results, such as market conditions or operational changes.

Level 5: ROI

Level 5 calculates the financial return of the training program by comparing the monetary value of its benefits to its total costs. This level builds on Level 4 by converting outcomes into financial terms and determining whether the program delivered a positive return. ROI is typically expressed as a percentage using the formula:

ROI (%) = (Net Program Benefits ÷ Program Costs) × 100

To produce credible results, learning leaders must isolate the impact of training and account for all associated costs, including development, delivery and participant time. Although it requires more effort and rigor, this level provides the strongest evidence of training’s value and supports more informed decision-making about future investments.

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