When was the last time your company spent money when the question of ROI was not raised? In the 90s? Never? Every manager worth her paycheck needs to consider the benefit of every investment and expense. Training is no exception. Here are some ways to think about the benefits of training and how you will measure it that will satisfy everyone.
Include your ROI calculations from the start. Why are you going to deliver this training? What do you need to change that includes training as part of the solution? Think about what you want to change, how training can assist, and how you will measure it. Getting approvals for this and future training initiatives will require this crucial step.
Where is the organization now (especially compared to your strongest competitor)? Some baseline measurements can be crucial in determining the need for training and the effectiveness of the path that your organization takes. How is your organization performing relative to competitors or other units within your company? Identify a handful of metrics that you want to improve with training as the solution.
What employee behaviors will change with training? Your training focus and goals will always include some behavioral changes in the trainees. How can you measure whether or not that has happened? Think about customer surveys, secret shoppers, risk reporting or new tools that you can create to measure the training’s effectiveness.
Monetize the measurements. Not every metric will easily convert to dollars, but most will. If you make the effort to do it, you can answer the ROI question easily for this and future initiatives. Here are some data points to consider: Customer acquisition costs, sales closing percentages, cost per incident (e.g., safety, HR, complaints). Show the financial improvement that comes from your training initiatives and follow-up.
What are your dashboard items and how can behavioral changes driven by effective training improve results? If you can answer that question, you can not only justify training, but you can articulate the costs of not training. How are you helping your competitors by not investing in staff development?
Learning Dynamics has over 30 years of experience helping its clients maximize their training ROI with its consultative results-based approach. Contact us today to discuss how we can help your organization meet its goals with the help of customized training solutions.