Understanding and Maximizing the ROI of Your Online Training Programs

Due to the rise of remote working capabilities, many employees are actively choosing to work from a remote location. The COVID-19 pandemic has forced organizations to enable their employees to Work from Home instead of commuting to the office. All this has affected the way training programs are delivered. Instead of hosting training workshops and programs in house, organizations are offering online alternatives to the same.

Just like any other training program, online learning and development projects need evaluation to showcase its Return on Investment (ROI). 

Understanding ROI for Training Programs

To calculate the ROI of a training program, divide the program costs by the benefits it offers.

Consider the following example for a program that intends to improve employee performance. The time saved or an increase in the employees' output as a result of the participation in the development or training program can be an example of performance improvement. Then convert these gains or benefits to monetary values for the calculation of ROI.

For a positive return on investment, the development program should be able to present gains that are higher than the investments made in the program.

Understanding ROI in Online Training Scenarios

It is necessary to calculate the costs involved to determine the ROI. For an online program, it can be a tricky task determining the different direct and indirect costs involved. The measurement of ROI in such settings can result in some difficulty for the organization, but it is not impossible.

To simplify this process, let's first understand the different costs that are necessary when it comes to online training programs.

Some of those potential costs can include the ones given below. 

• The costs of developing the e-learning or online training program
• The effort and time needed by the different subject matter experts involved in the program
• The costs associated with infrastructure and other support related costs 
• The time and effort used by the group responsible for the coordination of the development and delivery of the online training and learning program
• Other additional costs required for updating and improving the eLearning program

Once you know the possible costs associated with such online learning programs, it will be easier for you to calculate the ROI of those programs.

You can consider the following tips to help you maximize the ROI of the online training programs.

5 Tips to Maximize the ROI for Online Training Programs

• Create Objectives at all Levels

For any program, the first step is to perform the training needs analysis.  It helps determine the competency mapping, current and expected, and also helps establish the focus of the program. Here, you will also identify the expected outcomes of the program. For a successful program, create objectives at the following levels:

• Level 1 - Objectives related to online training reaction
• Level 2 - Objectives related to the acquisition of new skills
• Level 3 - Objectives related to the application of learning
• Level 4 - Objectives related to business impact
• Level 5 - Objectives related to the ROI

• Choose the Right Learning Strategy

To help the program participants develop proficiency, one needs to focus on choosing the right learning strategy. 

Nowadays, the options are immense thanks to advancements in technology. There are several immersive learning strategies to choose from now. Some of the potential ones that you can choose from are:

• Gamification
• Microlearning
• Stories
• Videos 
• Interactive videos
• Scenarios
• When applied correctly, participants can acquire new skills efficiently and effectively, leading to better ROI.

• Select the Right Assessment Strategy

Once you have made the right choice of learning strategy and implemented it, it is time to think about the assessment strategies. Here are some ideas that you can apply:

Use Interesting assessment formats, like gamified quizzes or scenarios.
Informal learning approaches for evaluations, like role plays, can validate the learners' practice or knowledge.

It is important to note that the focus must not solely be on the scores participants achieve at the end of online programs. Instead, they should cover an extended period for assessing for sustaining the proficiency levels. This approach also helps to determine if the program can be improved.  

• Determine the Right Learning Options

Too often, organizations end up limiting themselves to a single type of training, which is typically structured and formal. However, it is best not to depend on a single strategy for a virtual setting. A couple of options that you can include are as follows:

• Social Learning – This involves learning by listening, watching, doing, and sharing in a social context.
• Informal Learning – This type of learning is unstructured and takes place in non-traditional settings. For example, it can be self-directed by the learner or can happen via discussion forums or group discussions.

• Gather Feedback

When it comes to measuring the effectiveness of learning programs, feedback is critical. The same applies when you are offering online training. It is imperative to gather feedback from the participants not only while the online learning programs are being developed but also after implementation.

Gathering continuous feedback will help you in making improvements continuously for maximizing the returns on investment. Some of the areas that feedback can help with include the following:

• What is the reaction to the learning program?
• Is the program helping participants achieve their objectives?
• Are there proper supporting parts for facilitating the application of the training? For example, learning aids or support tools.
• Is there enough space for remediation and reinforcement of training?
• Are there options for constructive feedback to participants?
• Gather information on the enablers and barriers to learning and its application.

These tips and ideas should help you to create a robust online training and learning structure in your organization while the world grapples with remote working. 

A Certified ROI Professional® can help you immensely in implementing a successful online training initiative. If you are interested in becoming one or are looking for other resources on ROI Methodology, visit ROI Institute India.