While workplace training programmes are typically an effective method of developing the skills of employees across an entire business, they can be challenging to measure in terms of return on investment (ROI).
For those in charge of learning and development in the workplace, proving the value of training courses is something that should be prioritised. In order to do this, two things need to be considered. Firstly, are the methods in place suitable for the needs of the workforce? Secondly, is the cost of these methods providing tangible results in real-time?
To better implement a strategy to ensure that training programmes are as effective as possible, it is wise to understand exactly what a return on investment is, and how it can be applied to benefit employees at all levels.
What is a return on investment?
Return on investment, in simple terms, is precisely measuring the gain or loss generated on an investment relative to the amount of money contributed. When it comes to workplace training, it can be applied to indicate how beneficial a specific investment is when measured against business performance over a certain period.
When it comes to training, a carefully calculated return on investment will highlight to business leaders how efficient their training programmes are, as well as highlighting any areas that need either more or less financial support in the future.
Why is ROI important in workplace training?
Return on investment, workplace training programmes and long term success are all intrinsically linked. According to SH!FT, businesses that offer comprehensive training courses enjoy a 24% higher profit margin than those who spend less on training.
Without the metrics in place to assess and analyse the direct impact of a training programme on the workforce both in terms of engagement and financial gain, there will be no indication of whether or not the programme is beneficial at all, and can lose businesses a significant amount of time and money long term.
Measuring and reporting on ROI from workplace training is also essential in maintaining a culture of learning throughout the entire company. If employees are actively aware that the effectiveness of their training is being measured directly against the goals and KPIs of the business, they are more likely to engage with their programmes and offer their own suggestions for improvement.
MDA Training’s approach to return on investment in the workplace
Here at MDA Training, we utilise experiential learning methods to create relevant, compelling and unique training solutions that deliver a substantial return on investment.
Working directly with our clients, we are able to reflect specific requirements as well as KPIs into a training programme that motivates and engages employees in order to drive change on an organisational scale. For more information on our methods, read our blog on how experiential learning can help your leaders gain confidence in their roles here.
Ignoring the direct return on investment that specific workplace training programmes may or may not bring can be seriously damaging for businesses of all sizes. Every element of general operations needs to be analysed in full in terms of its value to the company, and training is no exception.