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Measuring the ROI of Corporate Learning

Learning and development is the most direct route to aligning capabilities to business end goals. In fact, millions of employees complete learning and development programs every year, including courses on compliance, soft skills, upskilling, and many many more. Especially in the wake of COVID-19, companies are investing in training more than ever. Whether it is a small, medium, or large company, measuring the return on investment (ROI) of L&D is critical to tracking impact.

Along with learning and development, new metrics are also worth considering, such as increased sales, employee confidence, and engagement level. In addition, pre-COVID metrics are less likely to matter since things have changed so much since. The number of people who attended training, how many people traveled for professional development, and the percent of employees who completed a webinar, for example, have become less relevant. Currently, only 8% of L&D teams calculate their return on investment, meaning that the other 92% of programs don’t have any attached success metrics. 

It is relatively simple to calculate the return on investment of learning and development. However, guides are important, as calculating an honest return can become challenging, especially with less specific metrics. Time, effort, and money are the main components to the formula, helping companies to calculate the expenses involved with their operations. In terms of time, it can take between 55 and 177 hours to create just 20 minutes of effective corporate learning for their employees. On top of that, employees may need to sacrifice valuable working time to complete traditional courses. Finally, the average in-person training session can cost up to $40,000. This includes tertiary costs, putting tremendous financial burden on many companies. To make matters more difficult, online or alternative models are not always cheaper. Common platforms to hold these events can cost up to nearly $200,000 for every 1,000 learners. The bottom line remains that many organizations feel they are unequipped, and many employees are left unsatisfied.


The result of these L&D struggles is a large amount of wasted time, money, and resources. Studies have shown that ineffective training costs $1.35 million per 1,000 employees. Also, only 10% of the money spent on traditional learning and development delivers any tangible result for companies. Despite all of these grievances, however, there are solutions out there for those struggling in this department. It comes down to finding the right tool for the job; To effectively measure L&D and ROI, the company must acquire a corporate learning program with purpose, accessibility and science-backed content. Fortunately, there are several services focused on improving the state of businesses big and small in this area. As many Fortune 500 companies begin to indulge in these services, many are seeing an increase in confidence, engagement, mobility, quality, and employee retention. These services can also help with alleviating time, money, and energy waste so that companies can focus on allocating those resources more effectively.

Reach learners around the world, boost ROI and revenue in multiple ways, create better relationships with employees, and take business to the next level with learning and development.

Measuring the ROI of corporate learning
Source: Arist

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