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HRD intervention is a process much more complex than accounting because the former involves dynamic human behaviors. Benefits derived from HRD intervention often tangle with the impact of other organizational variables.
Thus, ROI measurement for HRD programs requires identifying the HRD benefits and separating them from other impacts, if the ROI measurements are to be accurate (Wang, 2000).
The task of conducting rigorous and reliable ROI evaluation of training exceeds the resources and expertise of most organizations. Cost-effective ROI evaluation of training must overcome the following challenges and obstacles: -
Attribution of Effects to training is very difficult due to the influence on firm performance of a complex myriad of other factors. Variables such as markets, revenues, costs, interest rates and many other factors enter into profit determination, making it difficult to isolate the impact of any incremental training expenditure. Most ROI figures aren't precise, though they tend to be as accurate as many other estimates that organizations routinely make.
Evaluation is complicated by serious problems with data collection and measurement.
Costs of Training are generally known up front, often before the training takes place, but benefits may accrue slowly over time and may depend on such unpredictable factors as turnover rates among workers who are trained.
Objectives of Training are often murky and the rate of return cannot be measured if the meaning of return cannot be defined in quantifiable terms.
Cultural Resistance may be the main reason ROI is not measured for training. Some managers view ROI studies simply as promotion and marketing by the training department. Moreover, the "best practice" companies in terms of training are often the most resistant, accepting the value of training as an article of faith.
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 Siddharth Nagpal has done BBS (Batch of 2000-03) from College of Business Studies, University of Delhi, and is currently pursuing MBA from XLRI Jamshedpur.
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