An eLearning program is considered successful when you can demonstrate that the value it brings to the table outweighs its cost. Businesses carefully look into eLearning ROI to gauge their investment in online training is helping them with financial gains or not.
To achieve a good return on investment, the training initiative must be able to present a benefit that is greater than the initial investment. While the concept of ROI in corporate training seems straightforward, quantifying it can be tedious.
To calculate the eLearning ROI there is definitely a mathematical formula. Financial gains can be considered as the benefits achieved from the training program and divide it by the actual amount spent on the program. Motive of eLearning ROI is mainly to measure performance and gauge the efficiency of training investment. Businesses can also calculate how much is the decision investing in eLearning training favorable. Similarly, Paradiso brings you a list of few factors that can be considered to measure ROI metrics for learning and development.
Considering the mathematical approach, to calculate the ROI eLearning can be easily achieved by the formula;
While calculating eLearning ROI, companies count every ounce of dollar invested in the project. Take for example, an XYZ company invested $60,000 in employee training. They also managed to increase sales and earned $170,000.
ROI= (170,000 – 60,000)/60,000*100 = 183%
Every dollar invested in the training program; the company gets $2.83
A significant number of business executives are still reluctant or cynical about eLearning, and they are eager to point out flaws. When you can demonstrate that your eLearning activities will solve actual business problems and will have a positive effect on the company’s bottom line as a result of those efforts, hesitation to opt eLearning will fade. You’ll be better off in the long run if you can make a strong business case for the importance and benefits of implementing eLearning. This is where eLearning ROI metrics have an important role to play.
Key Performance Indicators, or KPIs, are the most effective resources you have at your fingertips for building a use case for investing in eLearning programs. KPIs or eLearning ROI metrics for learning and development are bound to vary from company to company within industries. Some general KPIs or eLearning ROI metrics for learning and development are sales performance indicators, performance improvement indicators and performance quality indicators to analyze and improve your ROI eLearning.
During the initial stage of design and development process, determine the real business need driving the learning and your needs will help you in improving ROI. Through clearly understanding of business expectations, you will be able to create an aligned product that hits the mark.
To improve eLearning ROI, training needs to be tied to real performance improvements is a good investment. Through determining performance outcomes and links to KPIs and organizational objectives, you can design training that teaches content that learners really need to know. This ROI metrics for learning and development reflects post-training learner performance and offer a way to assess the effect and success of the training.
Involve subject matter experts (SMEs) from the early stages of the project. This is to ensure the learning needs are achieved as offering the correct content in eLearning programs plays an important role and is one of the ROI metrics for learning and development. Find out what learners really need to know and imply it in the training from the beginning.
Learner-centric training focuses on situational context and provides the strongest link to in-house experiences that yields greater ROI. Focus on producing content that is important and applicable to the learner’s everyday position and activities, so it can be immediately applied rather than remaining theoretical.
To attain maximum ROI eLearning solutions such as Paradiso Learning offers user feedback to its audience. So how to proceed with the user feedback strategy? Before the official launch, organize a pilot run with a small group of learners to complete and review the training. This will aid in identifying and resolving problems while the project is still in progress.
Since sharing and debating content promotes information retention, engaging eLearning gets people talking and yields a higher ROI. Consider using an e-learning solutions such as LMS that allows social networking while deploying eLearning. Consider aligning eLearning with a company-wide strategy such as Paradiso Solutions to ensure more exposure and opportunities for discussion.
Paradiso eLearning solutions with the most up-to-date industry-standard design strategies and technologies have a long product life. Create learning strategies that allow you to reuse and repurpose material so you don’t have to start from scratch the next time. Always bear in mind design and development approaches that make updating content simple and KPIs need.
You can be on the winning streak while joining hands with Paradiso Solutions and measure eLearning ROI to gain all the profits you desire. Paradiso believes learning happens through connection, emotion, practice, and experience. By framing your evaluation in a more human way with Paradiso Solutions, you’ll gain a better perspective to create, execute, and adapt your eLearning so it’s as effective as possible.