Learning and Development is a common and direct way of matching employee skills with business goals. It has the potential to generate massive success in a business; however, it is often misused and ineffective. How can businesses ensure that their learning and development programs are creating positive results?
The answer exists in calculating the ROI of learning and development programs. Companies like Arist have ROI calculating tools that can help businesses analyze the efficacy of their programs. These measurements are vital because ineffective training costs $1,350 per employee, and only 10% of the money spent on traditional learning and development programs leads to measurable results.
In addition to delivering financial blows, learning and development programs can also fail to motivate, teach, and inspire its participants. In fact, 25% of participants forget what they learned almost immediately. When done wrong, learning and development can do more harm than good.
How does ROI measurement work? Arist calculates ROI by attaching value to modern KPIs, such as confidence lift, frequency of application, and employee retention. It draws from science to meet businesses where they are and deliver a cost-effective reading on program effectiveness. Businesses looking to implement learning and development programs may want to consider calculating the ROI of these programs to ensure genuine success.
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Source: Arist
