How to Measure ROI of Employee Training Programs? - MindScroll Blog Cover Image

How to Measure ROI of Employee Training Programs?

Published 3 years ago by Sana Bhat

ROI can be defined as a measurable rise in skills, greater revenue or the number of trained staff. Depending on different situations, it can have different meanings for different people. As the returns produced will be different for your workforce and businesses. There is also no single way to measure your ROI. There are various elements to consider. Such as your objectives, current know-how of your staff, employee feedback and their performance. Moreover, it’s not a one-time event. It is a continuous process where your staff learns and masters the skills needed for their growth. All this can make calculating ROI very difficult.

Employee training and development costs time, money and a lot of effort. It requires careful planning, resource allotment, and budgeting. It has also many hidden and direct costs. So, it’s obvious that you want to know the value of your programs. You also want to know if your budget is well utilized. Thus, measuring ROI (Return on Investment) can be very helpful. So, will it be worth the expenses? Will it benefit your employees and your company? In this blog article, we show you 5 simple ways to measure your ROI of training programs.

How to Measure ROI of Employee Training and Development?

1. Calculate the Engagement

You can evaluate engagement with course completion rates. You can also check it by the number of staff who participated in online workshops and events. Calculate the time that your workforce spends on an activity/eLearning course. Calculate how frequently they curated content in the form of discussions. These actions will show their engagement. These results can be then used to compare programs against each other. Thus, you can know the value that each program produced.

2. Assess the Training

About 90% of organizations conduct post-event feedback surveys to measure their ROI of training programs. These are a great way to keep your workers engaged and motivated. But a study by McKinsey revealed that many organizations don’t even track their staff feedback. Yet feedback surveys are still helpful in finding what they think. You can use questions like if they feel that they got useful skills and knowledge and if they are able to use it in their jobs. And if you use Likert scale reply option surveys, this feedback could be then transferred into numerical scores.

3. Measure the Learning

Many companies use a Learning Management System (LMS) that gives reports that you can use to find out the impact of your online training programs. These include drop-out rates and the time spent to complete such activities. There are also other ways to analyze the learning process. Knowledge recall tests and competency evaluations can provide scores to measure it. This is why the abilities and skills that your workforce gain is an important ROI measurement.

4. Get a Commitment

You can ask your workers to make a commitment at the end of each session. Such as what action will they take? What change will they do in their jobs? Follow up. Send them a reminder after each session. Research shows that commitment in front of others has a significant effect on behavior.

5. Use the Knowledge

Online employee training and development aren’t effective if your workforce doesn’t know how and when to use them. It’s when they put it into practice, you’ll start to see its real impact. This is done when they can practice their new skills and knowledge in job tasks, role-plays, and gamification. Then ratings or scores from these activities can be used to measure ROI.

Final Word

By now you will have a good idea of measuring ROI. You can see how measuring ROI can be beneficial for your company. You can track the effectiveness of your programs. You can also track if you’re reaching your business goals. As you assess your programs, collect staff feedback and make other improvements, your ROI will continue to increase.

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