With investments into something, businesses expect a certain amount of return out of it. One of the most critical areas where companies invest their money is employee training. They realize that well-trained employees will help in generating more revenue. Hence, they are investing in digital training/eLearning that is more advantageous than traditional training practice. Said that it is crucial to measure and optimize eLearning ROI.
Online content creation platforms, learning management systems (LMS), content delivery platforms, etc. are the requirements of eLearning. Businesses expect recurring advantages with these on-time investments, and to determine these advantages accurately, you must calculate the eLearning ROI and take appropriate measures to optimize the ROI.
Calculating eLearning ROI
In the traditional approach to calculate the ROI, one had to divide the return on actual investment by the cost incurred. In the same way, for calculating the eLearning ROI, the benefits through the training program have to be divided by the actual amount of money spent on the training program.
eLearning program cost typically includes the following:
- Course development cost
- LMS cost
- Administrative costs
- Infrastructure cost
All of the above are considered while calculating the ROI of an eLearning program.
The use of Kirkpatrick’s model of evaluation can methodologically rationalize the calculation of ROI. Let’s have a look at the framework for training evaluation, according to the Kirkpatrick model.
- Reaction: You can measure this factor by taking regular feedbacks from the learners
- Learning: Here, you can measure the skills and knowledge gained from the eLearning program. You can measure this aspect by conducting assessments.
- Behavioral Changes: Organizations can assess the amount of recently procured learning to utilize a combination of strategies.
- Outcome: Organizations can measure whether the eLearning course improved business outcomes.
How To Optimize Your eLearning ROI?
Identify Knowledge Gaps By Conducting Training Needs Analysis
You must analyze and identify the training needs of your employees to improve your training and eLearning ROI. Conducting training needs analysis enables you to determine the knowledge gaps in the present training program.
For instance, if you create a training program to train your employees on course B, but they require a training program on course A, it will increase the current knowledge gap. You can increase the knowledge and efficiency by developing training modules that employees need. It will improve productivity and training ROI.
Ensure A Responsive & Mobile-Friendly eLearning Module
Mobile-friendly training is a must for a mobile-oriented workforce. As such, the L&D teams need to reach out to the best eLearning companies to design a mobile-friendly eLearning module. It will ensure that the employees have continued access to the training modules.
Businesses today are driven by just-in-time information, and it should always be there at the fingertips of every employee. A mobile-friendly eLearning module that can be accessed anytime and anywhere can fulfill this requirement. It contributes a great deal to the return on training investment.
Increase Engagement By Gamifying eLearning Module
Kirkpatrick’s model, as mentioned earlier, can also help you in measuring eLearning ROI depending on the knowledge and skills gained from the training program. Hence, any measure to improve employee engagement and retention of knowledge will play a significant role in increasing the training ROI.
Over the years, enterprises have been leveraging the benefits of gamification. It boosts employees’ motivation and improves engagement in the workplace. Gamification in the eLearning module enables the employees to view and measure their performance and make necessary improvements if required.
Determining the effectiveness of a training program is critical for businesses, and this can be achieved by calculating the training and eLearning ROI. L&D teams can strategize appropriate ways of improving engagement based on the results.
Optimizing training ROI is equally essential for organizations. To do that, they must concentrate on creating training content that suits the learning needs of their employees.