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Skilling up your staff is a considerable investment. There is of course the time and money spent on the training. There is also the potential cost savings gained through improved productivity, which can vary significantly depending on the quality of the instruction.
So how do you calculate the return on investment? That is, what are the earnings over the costs of training?
Calculating your ROI is paramount to quantifying training success and making the case for future learning and development sessions.
Here are two basic steps in creating an L&D ROI report.
1. Collecting Data
You will first need to collect data on efficiencies gained through training. The metrics will depend on the type of training provided. A learning and development module focusing on harnessing the power of Microsoft Teams, for example, will evaluate time savings in categories such as communications and information-sharing. Thoroughly weigh your options regarding what metrics to use. Regardless of the data type, one common denominator is that data capture should take place a few months after the training. At this point, staff’s behavioural improvements facilitated by training will have rooted and been ongoing long enough to provide a useful data sample.
Here are a couple of L&D metrics to consider:
Ask training participants to complete a survey that asks them how they have incorporated learned skills on the job. Craft the L&D survey to inquire about specific aptitudes directly related to the training, but don’t stop there. Delve into broader abilities that boost efficiency, such as collaboration and stress reduction. Develop a method to appraise their learning in each category, such as using a scale. Consider giving surveys to supervisors to assess their impressions of their teams’ learning.
The Priority Management Difference: All of our training participants receive a survey four months post-training session. This survey is carefully calibrated to ask questions that demonstrate the extent of skills application in the workplace. Participants are surveyed on aptitudes specific to each training, as well as other key efficiency indicators, such as time management and prioritization.
Harness In-House Data
Your organization likely has relevant data sets that can be pulled to substantiate behavioural improvements realized through training. Time reports related to tasks or projects could be valuable. Sales or conversion numbers can tell an important story, as can customer reviews and feedback.
Learn More: Proven and Effective Professional Training
2. Generate an Impact Report
To generate a report illustrating gains from training, make a calculation using the efficiency data you have collected and combine it with training costs. Your methodology will depend on the data sets used, but essentially you take the gains from time saved thanks to the training minus the costs of the training. This will generate a number reflecting the current time/cost savings. You can also forecast time/cost savings with this data.
The Priority Management Difference: Priority Management generates Impact Reports for all clients. The participant survey data is entered into our proprietary impact calculator. This generates a precise appraisal of how behavioural improvements learned in training have affected individuals and groups of participants. Our exclusive Impact Report also features an ROI breakdown so you can analyze the merits of training and budget for future learning and development sessions.
Our Data Speaks for Us
In 2022, Priority Management surveyed nearly 350 workers in 55 companies around the globe. We compiled all surveys into a comprehensive 2022 Impact Survey Results Report.
The data speaks volumes.
The average increase in effectiveness on discrete tasks is between 34-57%. In total, participants say they gained 54 minutes each day thanks to skills acquired in our learning and development sessions. Beyond saving time, participants report increased productivity and minimized stress.
We pride ourselves in delivering real-world, measurable training outcomes. The reason we have been so successful for over 40 years in instructing workers in skills and best practices is that all training is tailored to the client’s specific work conditions and needs.
We are not a training provider - we are a training partner.
We collaborate closely before, during and after training to ensure behavioural improvements, which are those positive work habits that translate into saved minutes and gained productivity.
Contact us and find out how we can create an L&D training program with an impressive ROI that makes your staff more efficient and makes you - the learning and development lead - look like a rock star!