top of page

Measuring the ROI of eLearning: A Step-by-Step Guide for Managers


A hand dropping a coin on piles of coins to showing increasing return on investment

eLearning programs have become integral to modern employee training strategies, offering scalable and adaptable learning experiences. However, with this shift toward digital training, measuring the return on investment (ROI) of such programs has become a critical but often challenging endeavour.


Managers looking to assess the effectiveness of their eLearning initiatives need a clear framework to guide them through the process. This step-by-step guide is designed to help you not only understand the concept of ROI in eLearning but also to implement a detailed measurement strategy that delivers actionable insights and justifies your expenditure.


Step 1: Define Clear Learning Objectives

The foundation of any ROI measurement is a comprehensive understanding of what success looks like. In the context of eLearning, this means setting clear, measurable objectives for your eLearning program. Begin by asking:


  • What skills or knowledge are we aiming to impart?

  • How will this eLearning impact employee performance?

  • What are the specific business outcomes we expect to see?


By defining these objectives, you establish a baseline against which to measure the success of your eLearning program.


Step 2: Identify Key Performance Indicators (KPIs)

With your objectives in place, the next step is to define the KPIs that will help you track progress. KPIs might include:


  • Course Completion Rates.

  • Knowledge retention rates.

  • Increase in sales, productivity, or customer satisfaction.

  • Reduction in turnover or absenteeism.


Select KPIs that directly relate to your defined objectives and that can be quantified over time.


Step 3: Assess Your Baseline and Implementation Costs

Before you can measure improvement, you need to know where you started. Gather data on your current KPIs to establish a baseline. Then calculate the total cost of implementing the eLearning program, including development, platform, and administrative costs.


This step is crucial in demonstrating not just the ROI but also the cost-effectiveness of eLearning compared to traditional training methods.


Step 4: Measure Immediate Training Impact

Directly after the completion of the eLearning program, measure the immediate impact on the chosen KPIs. This might involve conducting pre- and post-learning assessments, evaluating initial skill application, or gathering feedback from participants.


Quantifying the immediate impact provides insight into the effectiveness of the eLearning content and delivery methods and guides any necessary program adjustments.


Step 5: Calculate Behavioural Change and Application Cost

This step requires a longer-term approach. Here, you will measure how behaviour and application over time have changed. Are employees consistently applying the knowledge gained? Are the behaviours sustained over time?


Be prepared to invest time in continued measurement over a reasonable period to accurately gauge the eLearning’s lasting impact. This data provides a more comprehensive view of the program's effectiveness and its ongoing contribution to organisational goals.


Step 6: Determine the ROI

At this stage, you are ready to calculate the ROI. Total the benefits from the eLearning program – increased productivity, reduced errors, etc. – and subtract the costs associated with the program. Divide the resulting figure by the total investment and multiply by 100 to express as a percentage.


A positive ROI indicates that the eLearning program is contributing value to the organisation beyond its initial costs. This calculation serves as a powerful tool for decision-makers in justifying and scaling your training efforts.


Step 7: Continuously Improve and Re-evaluate

ROI measurement is not a one-time activity. It is an iterative process that requires continual evaluation and improvement. Regularly re-evaluate your eLearning program against business objectives and adjust measurement strategies and content as necessary.


This ongoing commitment to improvement ensures that your eLearning initiatives stay aligned with organisational needs and continue to deliver a positive ROI.


Measuring the ROI of eLearning is a multifaceted process that starts with setting clear objectives and ends with a comprehensive analysis of your program's impact on the business. By following this step-by-step guide, managers can ensure that their eLearning investment is not just spent but leveraged to drive real business results.




 

3 views0 comments

Comments


bottom of page