When an enterprise invests its capital into something, they expect a certain return on their investment. Employee training is a critical area where enterprises invest their money into. Because a well-trained workforce will help generate more revenue. And therefore, when digitization was the need of the hour, enterprises invested into digital training or eLearning, which proved quite beneficial compared to the old training approach. This is where measuring and optimize elearning roi comes into the picture.
eLearning demanded digital devices, content delivery platforms, online content creation platforms, learning management systems and so on. And in exchange for these one-time investments, enterprises need recurring benefits. To accurately determine these benefits, it is essential to calculate the eLearning ROI and then take steps to optimize the ROI.
How to calculate eLearning ROI
The traditional method of calculating the return on investment was to divide the benefit or return on actual investment by the cost incurred. Similarly, to calculate the eLearning ROI, financial gains can be considered as the benefits achieved from the training program and divide it by the actual amount spent on the program.
The cost of an eLearning program includes the cost of course development, cost of learning management system, administrative cost of managing the initiative, as well as infrastructure costs. All these are to be considered while calculating the ROI.
Calculation of ROI in a methodological manner can be rationalized with the use of Kirkpatrick’s model of evaluation by adding the fifth level as Return on Investment. Given below is the framework for training evaluation as per the Kirkpatrick model.
Level 1: Reaction – This factor can be measured by taking feedback from the learners.
Level 2: Learning – At this stage you gauge the knowledge and skills gained from the learning program. This aspect can be measured with the help of tests and assessments.
Level 3: Behavioral Changes – Organizations need to utilize a blend of strategies to survey the amount of recently procured learning that is being applied at work.
Level 4: Results – Here the organizations measure whether the course helped improve business results.\
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