Finding the ROI to Employee Training
In order to grow a successful business, companies need to invest in their employees, ensuring each employee’s skills are used to their full potential and contribute to the overall company goals. A common method of employee training is called learning and development, or L&D. L&D includes courses on compliance, soft skills, product training, onboarding, and more, and is designed to align employee capabilities to business goals. The question is: does it work?
The easiest way to measure the success of L&D programs is through ROI calculators. Unfortunately, only 8% of L&D teams calculate their ROI, which means the vast majority of L&D programs do not consider success metrics at all.
When calculating ROI, organizations should take several factors into account, such as time, effort, and money. It can take between 55 and 177 hours to create 20 minutes of corporate learning; this time imbalance should be considered when it comes to determining whether or not an L&D program is worthwhile. Considering cost, whether it be of transportation, hotels, venues, equipment, etc, is also important, as in-person training sessions can be extremely expensive.
Some companies turn to online or alternative models in the hopes of reducing time, effort, and monetary expenditures. However, these models are not always cheaper. For example, LinkedIn’s Content Library costs $180,000 per 1,000 learners, making it an expensive investment.
When done improperly, L&D programs can lead to exorbitant costs, while not generating much positive change in participants. However, L&D programs do not have to be this way. By measuring ROI with a tool like Arist’s ROI Calculator, companies can identify whether or not they are gaining revenue through L&D programs, and how effective these programs are overall.
Artist’s programs are proven to cost less across the board, whether it be in time, money, or energy. For example, creating a microlearning program through Artist takes between two and eight hours, and employees can complete the training in under ten minutes. These changes can boost ROI, which has positive impacts on employee satisfaction; employees have reported feeling 30% more confident in performing their roles, and experience a 90% increase in adoption of learning.
Companies around the globe have begun to use Arist to calculate ROI and improve their L&D programs. Creating a successful business requires efficiency in all areas, including training. Examining the inputs and outputs of L&D through ROI can make a big difference in company success.