Page 10: of Maritime Reporter Magazine (May 2023)

Training Tips for Ships

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Tip #47

THE ELUSIVE

TRAINING ROI

By Murray Goldberg he maritime industry is a safety-critical sector that to quantify the exact ROI of high-quality training. Still, sev- is responsible for the wellbeing of countless of? - eral indicators suggest that the investment is worthwhile. For cers, crew and passengers. As technology advances instance, a reduction in accidents and incidents can lead to

Tand the industry grows, it is crucial that we priori- signi? cant cost savings in terms of repairs, legal fees, and in- tize high-quality training and assessment and utilize analytics surance premiums. Additionally, the improved ef? ciency re- to continuously improve our training programs. But how do sulting from better training can increase pro? tability. Finally, we know when we have done enough or spent enough on our training analytics can be used to identify gaps in training and training programs? One answer is through a Return on Invest- assessment, allowing for targeted improvements that yield a ment (ROI) calculation. And while it may be dif? cult to pin higher ROI.

down an exact ROI for our efforts, there are some basic prin- Despite the dif? culty in determining de? nitive ROI calcu- ciples we can use to help us know when we need to do more or lations, there are some simple approaches we can use to ob- when we have reached the point of diminishing returns. tain some measurements of ROI on training programs. Let’s

We are all well aware of the bene? ts of high-quality train- look at some common-sense, usable approaches that we in the ing. It reduces the risk of accidents and incidents which can maritime industry can use to effectively evaluate the ROI of lead to loss of life, damage to property, and environmental training and assessment initiatives.

disasters. Effective training and assessment also contribute to First, to determine the level of return, we need ? rst to iden- the overall ef? ciency of the maritime industry. Well-trained tify the return we hope to see. This means establishing clear crew members can optimize the use of resources and reduce training objectives that align with the company’s overall operational costs. goals around improved performance, reduced incidents, and

Although we all likely agree with the above, it is dif? cult increased operational ef? ciency. These objectives should be 10 Maritime Reporter & Engineering News • May 2023

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