to increase the ROI on learning
Have you ever been in a training where you were asked to fill out a questionnaire at the end of the training? How did you determine what exactly you had learned during the training? Was your opinion on the return of investment of the training subjective or based on facts?
Training used to be an expense on a company's balance sheet. But times are changing and companies are learning too. Can we actually measure the results of classes we have taken?
Yes we can. For each training, the Return on Investment can be calculated. The same way that you can calculate the return on any investment, you can also calculate how many dollars are returned for each dollar invested in a training program.
So is the learning and development sector turning into another financial sector?
Yes and no. Figures are a becoming increasingly important. And by including figures in the evaluation of a learning program, learning and development may all of a sudden be put on the agenda of top management. So the role of learning and development is gaining importance. Learning and development remains a human element. After all, it's all about developing people. But figures make the importance of learning and development visible and tangible. Therefore the ROI on learning is actually a great tool to realize learning and development objectives in an organization.
What are key elements that you should keep in mind when calculating the ROI of a training project?
#1. Define the business objectives of your training program.
If you know the aim of a training program, you will also know what you would like to measure. Make sure that the e-learning program is in sync with the business objective.
#2. Engage learners
The more people are participate in a training program, the more data that you collect, and the better you can calculate the ROI on your training program. User engagement may be increased in various ways. Make sure that the content is accurate and relevant to the learner. The design has to be appealing and intuitive. Gamification can be applied to further increase the user engagement.
#3. Collect data
Data collection is the start of any ROI calculation. e-Learning and m-learning help us here. Computers and mobile devices are great data collectors. This data sits at the basis of your ROI calculation. But also: smart evaluations with your staff can enable you to get data from the participants. The more data, the better.
#4. Calculate the ROI
The ROI (%) is defined as:
Wow, and all of a sudden you are involved in financial calculations! Don't worry, this is all there is to it. Calculating the return on education ensures that you develop learning programs that yield maximum returns for both the learners, the top management of your organization and as a consequence for yourself also.
#5. Maximize the ROI
This is where the role of a teacher or learning & development specialist becomes interesting. There are many ways to maximize the ROI on a training program. Both online training courses that are adaptive as well as face-to-face training programs that are personalized, can increase the ROI.
What are the dos and don'ts when looking to increase the return on education? What are best practices? This is very much dependent on the training subject, the audience, the objective. Ask around and I am sure that many people will be pleased to share their experiences with you.
ROI on training has become a subject of study. More and more organizations realize that training should be at the heart of the organization and can create competitive advantage. But how to convince senior management? The ROI Methodology is the further development of Donald Kirkpatrick’s model in which he defined 4 levels: Satisfaction, Learning, Behavior and Result.
Jack and Patti Philips of the ROI Institute added ROI as the 5th level and made the model operational through practical tools and guiding principle. You can be trained and certified for the ROI Methodology, thus becoming a true expert on Return on Education. For more information see www.roiinstitute.net and www.roinavigator.com .
Article provided by Drillster
Using figures to prove what the result of a training program has been. Moving away from the evaluation forms in which we used to indicate how much we appreciated the trainer and liked the lunch. Interested in more information? We’ll be happy to talk to you. Contact us via firstname.lastname@example.org