Corporate Education: Optimize Learning & Development Programs with Effective ROI calculation

Aligning capabilities with business goals is most effectively achieved through Learning and Development, which serves as the most direct pathway. These L&D programs are completed by millions of employees each year in courses such as Product Training and Onboarding. 

On average, companies spend about $1,308.67 dollars on training per learner based on their size. While expenses are part of understanding the impact of these programs, it is critical to effectively measure its ROI which is more than just a numbers game. Earlier, metrics such as lower employee churn and higher engagement were considered. However, post the pandemic, more relevant metrics such as percent of employees to complete a webinar matter. 

Calculating ROI is important but a predominant portion of L&D programs don’t have success metrics attached to it. The formula for ROI has two components which are the L&D benefits and the cost of L&D. The cost includes expenses such as time, effort and money. Employees need to sacrifice valuable working time to complete these traditional courses, which unfavorably impacts all of the above expenses. 

Alternatives such as online training modes aren’t cheaper either with the most expensive common platforms ranging from $96k to $180k. Secondly, do the programs really help employees reach their potential? 25% of employees forget what they learned almost immediately and the impact is on both fronts. 35% of organizations say they lack access to the right training content. 

In order to accurately assess your L&D ROI, it is essential to obtain a corporate learning program that encompasses purposeful, accessible, and scientifically supported content. L&D,  more importantly, associates ROI to non-traditional KPIs. Not to mention the fact that it saves time, money and energy. 

It takes two to eight hours to push microlearning and takes employees just five to seven minutes to complete. For every 1,000 learners, it saves $96,000. It also can save L&D teams up to 82% on course creation and delivery. It also positively impacts organizations as 30% employees feel more confident in performing their roles and 95% increase the speed of learning creation. The last, very underrated, aspect of it helps reach learners across the world. It is also loved by learners across the globe in countries such as Madagascar, Kenya, Sudan and Nigeria.

Source: Arist