When most companies seek to invest in something, return on investment (ROI) is the key metric that is usually highlighted. Usually, ROI is calculated when acquiring new assets and, ideally, finding the highest ROI to begin investing in. But recently, there has been a new method to boost ROI. Learning and development programs (L&D) involve educating and providing new tools to employees to boost productivity and income.
L&D is not a new concept. However, it has undergone dramatic overhauls in regard to how companies attempt to measure its impact. Few companies measure the effect of L&D on ROI, only 8%. Previously, companies concerned themselves with the number of people who were trained. Unfortunately, this operates under the assumption that all training provided is effective, which is untrue in real-world applications. Now, companies measure sales related to training as well as employee confidence and engagement, which is much more representative of overall company success. As a result, the amount of capital wasted on ineffectiveness is decreasing significantly. Only 10% of the money spent on L&D previously translated to company performance. So, what are some of the methods to train employees more effectively?
Currently, online training has been perceived much more favourably than in-person training. For in-person training, the training costs around $40K, and the associated accommodation costs. Also, time and effort are spent creating corporate training and consuming the content. Whereas online alternatives often mitigate or eliminate these costs. Despite this, some online options still need to be revised. Artist, however, has emerged as resource-efficient as well as effective for the company’s overall ROI. This is done by better connecting with employees to boost their confidence and speed of learning. Ultimately, L&D has proven itself to be valuable to companies. By investing in better alternatives, more companies can enjoy the ROI benefits L&D provides.
To understand better, take a look at the infographic below: