Creating a program today is easier than ever, but proving it’s merit poses more than a simple challenge. Luckily there is a simple formula that can be used to achieve this end. The Return on Investment (ROI) of a Learning and Development (L&D) program can be calculated using this formula. L&D ROI = (L&D Benefits – Cost of L&D) / Cost of L&D x 100.
At a glance this looks complex, but it’s conceptually quite simple. Do the benefits outweigh the cost? A simple model like this is great for analyzing any L&D program. Now what causes a low or high ROI value? There are a few key factors. The first is getting someone through the entire process. This means it’s not just the initial engagement, but retaining attention and causing tangible changes in behavior that are essential.
The second is lowering costs. A great way to do this is making sure the production of a program is fully digital. The third is proper metrics and analysis of one’s own program. Even if one creates the most genius and revolutionary learning program, if one can’t tell it’s not worth anything. Tracking how people are learning, how the bottom line is affected, concrete statistics like these are essential.
Naturally these are just a few possible steps of many. There is so much that can be done to maximize ROI in L&D programs. The most important thing to remember though truly is output. There’s nothing worse than hundreds of hours going into a launch no one cares about. Make sure the potential of the program is understood as well as the program itself. That is the key to a successful launch.
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Source: Arist