| "Investment"
in e-Learning By
Doug Webster / December 2006
Putting your organization's money into an e-learning
course may seem more like a frivolous expense than an
investment. "Soft skills" training seems to
have an invisible and immeasurable ROI. However, it
is possible to put a monetary value on "soft skills"
training to demonstrate its financial value to your
company.
Here are 5 steps to follow to determine the ROI
of your training program:
1. Measure the initial reaction to the training
Ask the trainees what they thought of the course. Have
them fill out a post-assessment survey to see how much
they feel they learned from the program.
2. Analyze the learning
Test the trainees on the material at hand to find out
how much of it they actually absorbed. All KnowledgeStart
courses provide a test within the program that will
send results to the course administrator for review,
as well as printable take-aways outlining course material.
Poor results on the testing often lead to a poor or
disappointing ROI.
3. Analyze the skills gained over the long term
Assess whether on-the-job behavior has changed. Collect
data over a long period of time, say a year, and compare
it to the same statistics before the course was implemented.
KnowledgeStart courses have been proven to reduce turnover,
conflict, discrimination claims, and lawsuits.
4. Measure the business impact
Determine how much money has been saved or gained due
to the results discovered from Step 3. How much money
has been saved in training costs by reducing turnover?
How much money has been gained by increasing productivity?
You may be surprised at the numbers you see.
5. Analyze the actual ROI
See how the "purchase" of your e-learning
program has become an "investment." Subtract
the cost of the program from the benefits found in Step
4, and divide the difference by the total cost of the
program:
Benefits - Cost
-----------------------
Total Cost
The resulting percentage will determine how many cents
on the dollar you have saved directly by investing in
your training program.
Who We Are
KnowledgeStart is an employee development company which, for the past seven
years, has specialized in online training for its U.S. and global clients.
We are a leading provider of award-winning e-learning programs and platforms
that maximize learning, increase collaboration and retention, and improve
competitive edge. Over the years, we have excelled in
enhancing organizational and individual productivity in topics such as
Diversity and Inclusion,
Generational Differences,
Harassment Prevention,
Business Ethics, and
Substance Abuse Prevention.
KnowledgeStart understands that every decision made by your employees eventually
crosses someone's path somehow and can often have a "ripple effect" across your
entire organization. Even the smallest of decisions can have a BIG impact on
your company and the people around you. Your workplace is an incredibly
inter-connected environment.
Through this understanding and our collective skill sets and experiences with
leading companies, we are proud to deliver innovative approaches to employee
training, compliance, and outcome measurement software.
Visit our website:
http://www.knowledgestart.com
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