I think most L&D practitioners (and their bosses) would agree that training return on investment is pretty high on their list of ‘important things’.
What is training ROI?
Training ROI stands for training return on investment. It is a measure of training success in terms of meeting your desired objectives. ROI is most often viewed as a financial measure that accounts for the benefits of training in relation to the money invested in an intervention.
ROI gets to the bottom line, measuring business results that result from training. It does not measure the lower-level results that you would typically associate with a ‘happy sheet’ evaluation, such as learner satisfaction and the distance travelled in learning.
What’s the outlook for training ROI?
An employment survey by the UKCES shows employers continue to invest in training. In fact, 60% of the UK’s workforce has undertaken training equating to £42 billion. That’s an average of £1,500 per employee.
Unfortunately, few organisations take steps beyond making an initial financial pledge. This means that learning and training seldom achieve the desired objectives.
As Jay Bahlis says in a paper on maximising training impact;
“Whether training decisions are based upon financial measures – such as Return On Investment (ROI), or qualitative measures – such as Return On Expectations (ROE), the ultimate objective should always be the same – generate the greatest benefit (value) at the lowest possible cost”
10 tips for maximising your return on investment in training:
#1. Use training as a strategic business tool
All too often, companies employ training as a remedy to strengthen weaknesses in a team, rather than as a strategic part of organisational development.
As Investors in People UK has stated, aligning employees’ skills and development areas with an organisation’s strategy will boost the overall performance of a business.
#2. Have clear organisational goals in mind for training
An organisation should continually ask itself what its goals for training are and what benefits it will receive from improving knowledge and skills, as well as creating behavioural change in the workforce.
You should explicitly communicate these aims and goals to the employee so they understand what is expected of them before, during and after the training. Explaining the bigger picture will encourage them to align with the overall business vision.
#3. Identify skills gaps accurately by asking for outside help
Don’t be afraid to engage external support to help identify gaps and potential interventions.
An external consultant will be able to look at business needs objectively and identify skill gaps. It is often difficult to see past the person in real need of further support, particularly in a small business.
#4. Ask your people to commit to what they want from the training
Establishing organisational goals is essential, but it’s also vital that your people understand the value of training from an individual and personal perspective.
Ask them to consider what the training might entail and what they hope to gain from it.
A helpful technique is to encourage your team members to write down questions before the training and challenge them to answer them during the intervention.
Don’t forget to ensure they are clear on what you need them to know and do, as your objectives will determine your own perception of whether the training was a success.
#5. Create a clear and focused environment
Most of us have busy lives and multiple tasks to complete in the working day. To get maximum benefit from a training programme, you staff must focus and be free from distractions.
That means no phones, no meetings to attend, no e-mails to respond to, etc.
In the lead-up to a training intervention, provide your team with deadlines for updating their schedules.
A proactive and attentive approach to learning will pave the way for effective learning, transfer, and retention, and ultimately lead to an increased return on investment.
#6. Ensure that the training meets the needs that YOU have
Ensure training intervention aims are tailored to your business proposition. A generic training programme may not be the answer to your skills gaps and thus is unlikely to improve performance in your business.
Of course, this is not always the case. However, if ROI is a key driver (and why wouldn’t it be), then the choice between an ‘off the peg’ or a tailored/bespoke inetervention should be a real consideration.
If you decide that bespoke is the way to go, then ask for a consultation and ensure you receive a proposal tailored to fit your organisation, providing the outcomes you need.
#7. Evaluate job behaviour before and after training
It is very important to evaluate job behaviour before and after training to see exactly what impact the training has made.
And don’t stop there. Continue to monitor changes to ensure your training investment has longevity. Post-training evaluation sheets are not enough. A good training provider will work with you to effectively evaluate your return on investment.
#8. Aim to foster personal and professional development
Organisations that truly promote and foster learning will see a much greater return on training investment and subsequent increases in performance; with that in mind, organisations should look to the development of 4 key factors that can play a crucial role in building a learning organisation:
- Leadership behaviour that provides positive reinforcement and reward for all learning, both formal and informal
- Systematic learning processes and practices that promote learning and its positive application in the workplace
- Create a supportive learning environment where employees feel ‘safe’ and have time to practice and reflect without fear of failure or mistake
- A method of aligning individual learning goals and interventions with organisation objectives so that employees can recognise how they fit in to the bigger picture
#9. Ensure you consistent engage employees
Lack of motivation or even boredom can be the downfall of a potentially effective training programme.
Make sure you fully engage your team and keep them
focused throughout the duration of their training. If something isn’t working, or your team are los
ing concentration, communicate this with your training provider.
Good professional providers are flexible, so if your team is not responding well to an aspect of their training, the provider will adapt their style or delivery. Programmes should be continuously improved and adapted to create the best results.
#10. Consider training as you would a project
Think about training as a project; the greatest ROI is achieved from training that is well planned, organised and systematically controlled (allowing for fresh thinking and innovation of course).
As with any project you should set out by defining your exact objectives, deciding exactly what it is you are looking to achieve. Once you know the desired impact it is time to engage all stakeholders, ensuring they know what you expect of them at all stages.
You will need to decide on the most suitable methods of training, and determine the true costs whilst planning how you will best measure the ROI that training should have.
The training should be well designed and organised in a way that maximises learning and its application.
Upon completion, the training should be evaluated and the ROI measured. Close the ‘project’ by considering lessons learned and actions to ensure future training ROI is further maximised. More to follow on this in future blogs.
Implementation
Implementing the previous tips and treating training investment as a project with measurable time-bound outcomes should provide a significant chance of maximising your training return on investment.
