Measuring e-Learning ROI
Demonstrating your e-learning program's ROI through actual cost savings and business impact helps to secure executive support for continued learning investment.
The question is: is it worth the effort?
Despite the extra work required to measure ROI, most learning professionals believe that it is well worth the effort. It proves that learning professionals understand business needs and the importance of driving business results.
ROI analysis can also promote higher levels of managerial support throughout the organization, creating a more positive partnership between the learning department and the business stakeholders.
In the early stages of e-learning adoption, companies often focus solely on cost savings. This can be measured by comparing the cost of delivering e-learning to other forms of learning such as internally provided classroom training, external providers of training or tuition credits. In addition to the training costs, be sure to include the costs of travel, hotel stays and meals.
Another important measure is time away from the job: for training that is delivered outside the workplace, that may require overnight travel, has a much greater impact on productivity than e-learning that is delivered right to the desktop.
To go beyond simple cost savings it is important to look more closely at the type of training being delivered and how it aligns with business goals. What is the skill being developed? What is the value of increasing that skill to the performance of the job? What is the value of that job to the company's overall mission? For companies that have established a system of job roles and competencies, it is easier to measure the positive impact of training for an individual. In some cases, such as compliance training, the value of the learning may lie in cost-avoidance (reduction of legal costs, downtime and accidents).
When learning professionals understand the business objectives they can create aligned learning programs that are highly-efficient in driving the desired business outcomes. When these programs are set up in a way that is measurable from the start, the value of learning can also be clearly demonstrated.
e-Learning ROI Resources
- White Paper: Scrap Learning Guide
Ensure your learners get the most out of your training programs—learn how to reduce "scrap learning," training that's delivered, but not applied on the job. These simple tips help you maximize your learning ROI. - Video: What Customers Are Saying About e-Learning ROI
Hear how this Senior Manager of Learning & Development was able to calculate and demonstrate his e-learning ROI and communicate it throughout his organization. - Research: Achieving Real Business Value with Learning and Development
This study of human resources, learning and line business professionals reveals the current state of learning and development, its role within talent management, and the value organizations derive from it. - Blog: The State of e-Learning Investment—a Measure of Success
Learning Reimagined February 1, 2011 by Kevin Young
According to Bersin & Associates, it seems there's a silver lining to the recessionary cloud: companies have been forced to focus on the issues that really matter, intensifying the focus on workforce planning, with a result that business and talent strategies are more closely aligned. - White Paper: What Return on Investment Does e-learning Provide?
Organizations invest in e-learning solutions with the expectation they will have a measurable impact on performance by achieving specific business outcomes. Measuring the value of learning solutions allows you to demonstrate the return on investment in training. - White Paper: SkillSoft Impact Analysis
This paper provides an overview of SkillSoft's Impact Analysis, which is a simplified process and toolkit offered to support SkillSoft clients in demonstrating the impact of e-learning investments in both qualitative and quantitative terms.
