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ROI of further training: Measuring progress and unleashing potential

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ROI on continuing education: Methods & calculation

Further training is a central component for the success of any company. In times of tight budgets, however, it is crucial to prove the benefits of learning measures. But how can the return on investment (ROI) of further training really be measured and evaluated? And what measurement methods are there besides ROI to comprehensively assess the success of training?

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Why is personnel development important?

Personnel development is of central importance to companies for various reasons. It increases efficiency and productivity through the acquisition of specialist knowledge and expertise. By upskilling and promoting a learning culture , it supports innovation and flexibility. Investing in employees' skills enables companies to react more flexibly to market changes and remain competitive. In addition, personnel development contributes to increasing employee satisfaction and reduces staff turnover by offering further training opportunities. Lower staff turnover can lead to monetary savings. Last but not least, it secures the future competitiveness of the company and increases its attractiveness on the labor market.

The challenges of ROI measurement

Further training often incurs costs that are easy to quantify, such as trainer fees or travel expenses. The benefits , on the other hand, cannot always be expressed directly and exclusively in monetary terms. Positive effects such as higher employee satisfaction, increased innovative ability or the acquisition of new skills are difficult to quantify. A purely financial view therefore does not do justice to the benefits of further training.

ROI as an important indicator

The ROI on training is a financial indicator that shows the ratio of profit to capital employed as a percentage. For further training, it is calculated as follows:

ROI (%) = (benefit of a further training offer (in euros) - cost of a further training offer) / cost of a further training offer × 100

An ROI for training of over 100% is considered successful. However, the ROI focuses on measurable benefits and costs and ignores important effects that are difficult to quantify.

New measurement methods for a comprehensive assessment

In order to examine the success of further training more comprehensively, further measurement methods are needed. The Kirkpatrick model offers a way of looking at the effectiveness of learning measures on a broader basis. It bases the assessment on the four levels of reaction, learning, behavior and results. By looking at these levels, it is possible to comprehensively measure and analyze the impact of training on learners and the company

Visualization of the Kirkpatrick model with the 4 phases reaction, learning, behavior, results
Kirkpatrick model

An extension of the Kirkpatrick model is the Learning Transfer Evaluation Model (LTEM), which extends the measurement of learning success to a total of eight phases.

LTEM Learning Transfer Evaluation Model: Phases and key questions per phase
Phases and key questions in the Learning Transfer Evaluation Model

Digital learning as a solution for measurability problems

Digital learning content and learning platforms can help to overcome the challenges of measuring the success of continuing education. They enable automated data collection, promote the transfer of learning and increase the ROI for continuing education.

Advantages of digital learning:

  • Automated data collection and clear dashboards
  • Flexible learning content that can be easily integrated into everyday working life
  • Promotion of learning transfer through self-directed learning and networking opportunities
  • Reduced costs due to fewer face-to-face training sessions

Conclusion

Measuring the ROI on training is complex, but crucial in order to prove the value of learning measures. In addition to ROI, there are other measurement methods that enable a comprehensive evaluation. Digital learning can help to improve measurability, increase learning success and optimize ROI.

Curious?

Download our white paper "ROI of further training: How digital learning and goal definition make benefits measurable" and find out how you can systematically measure and optimize the success of your training measures!

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