The world’s top performing business leaders understand the importance of properly evaluating the Return On
Investment of corporate training programs. To thrive in business today,
training must be done effectively and efficiently.
Understanding the return on investment for employee training
can aid in making better business decisions and can quickly strengthen a team
and employee engagement.
While it may be appealing to have a simple formula to
measure training analytics quickly to make clear cut decisions, the process is
Despite this, measuring ROI for L&D is critical.
How to Measure ROI in Corporate
The first step in
measuring the benefits of corporate training is to ask questions long before
you launch your training program.
In an ideal world, an executive from your HR team will help
create your corporate content. However, more is needed for maximum results.
The individuals you’re educating should also be involved in
guiding the content. Research consistently reveals that adult learners can only
absorb information if they have a compelling reason to do so.
Start by taking a survey to figure out what is on the hearts
and minds of your learners. Then incorporate those preferences into your
The next step is
to measure their engagement in your training sessions.
Utilize immersive learning tools and various assessments to
see how your learners are engaging during training. This gives you real-time
access to their experience with your program.
Finally, ask the
right questions during training. It may be tempting to ask standard follow up
questions, but it is far more effective to use deep learning questions to get
to the heart of their experience.
Create scenarios and ask your learners what the next best
step would be, then have your learners rank one another on their response. This
encourages them to put their responses into real-world situations.
Stay innovative in measuring ROI for your training programs
and don’t hesitate to adjust your strategy for better results.
The Role of Big Data
Of course, without big data,
it is difficult to measure just about anything these days. Setting aside a
significant budget for Measurement, Evaluation, Metrics, and Analytics (MEMA)
will aid in exploring just how valuable your learning and development programs
Evaluation is everyone’s responsibility and tracking how
your team members are functioning within their roles benefits every level of
Big data capture is complex,
and large data sets reveal patterns that affect your decision-making. It also
measures the effectiveness of your current training program and can also
suggest changes to improve it. It can even decipher the relationship between
training and employee retention.
To put it simply, your big data budget could very well hold
you back from long-term benefits waiting to reveal themselves.
What’s the Benefit of Measuring ROI?
Corporate management often sees training programs as cost
centers, but if training outcomes are married to business outcomes a positive
impact on performance and productivity are worth the investment.
An understanding of the ROI of learning and development can
help HR departments invest intelligently, predict the evolution of employees,
and increase productivity more effectively.
Additionally, looks like the biggest blind spots can actually
be covering hidden problems associated with coaching, mentoring, and employee
In the end, you don’t know what you don’t know, and
measuring the ROI on your corporate training strategies can help your
organization create a streamlined training approach that works.