When budget cuts are necessary, often the first budgets to be sacrificed include those for training and staff development. Justifying the cost of initial training and ongoing development schemes can be challenging for businesses that are not seeing a good return on their investment in this area.
However there is no disputing that learning and development has a key role to play in the growth, expansion and overall improvement of the business in many ways such as improving efficiency, productivity and customer satisfaction. So how can you measure the ROI of your learning and development to ensure it generates a profit?
Unique measurements for ROI of training
Every business will have different targets and indicators of growth and improvement, and learning and development is no exception to this. Depending on the sector, type of business and the way it operates, the outcomes of training should be measurable in some way.
For example, if there is training that covers something like customer service, and customers that are contacted directly then start to consistently make repeat purchases more often than before, this could be an indicator that the customer service training is successful, and at the same time profit is being generated.
Measuring output and efficiency
Other measures of the ROI from staff training include the output of staff. Has staff training on new processes meant that they have worked to shorter deadlines with ease, and increased the efficiency of the way that they are working? Perhaps work has become more focused and staff morale has improved. All of these things should also be reflected financially as an increase in profit in order to demonstrate the ROI that investing into learning and development has provided.
Making a profit externally
Have you considered that you could also increase the ROI from your training by offering it as a service externally? Where you are offering a useful service to your in-house staff, external contractors, part-time staff or agency staff might be interested in undertaking the same training to help with their personal development, which of course brings in profit for you through them paying for training, but is also demonstrated by the additional benefits that they bring to your business when working for you or in partnership with you.
Find out more about measuring the ROI of your learning and development by getting in touch with the Enterprise Study team on 01242 254 254 who will be able to give you advice that is tailored to your business.