Calculating the Cost of Learning and Development ROI

ROI is calculated by subtracting the cost of Learning and Development (L&D) from the benefits of L&D, dividing this number by the cost of L&D and multiplying it by 100. It is an important metric for measuring the impact of L&D: a high ROI can indicate that the benefits of a program outweigh the cost and a low ROI can indicate that the costs outweigh the benefits. 

However, although measuring the ROI of L&D is critical to tracking impact, new metrics are also worth considering. For instance, increased sales due to training, greater employee confidence and higher employee engagement are also important to take into consideration when weighing success metrics. Only 8% of L&D teams calculate their ROI, which means that 93% of L&D programs do not have success metrics attached to their L&D at all. 

In fact, L&D is the most direct route to aligning employees to business goals. Millions of employees complete L&D programs every year, including courses on compliance, soft skills, upskilling, product training, onboarding and reskilling.
Programs can use an L&D tool such as Arist to shift to a more continuous learning model. Arist is a microlearning platform that allows for quicker iteration and higher engagement. It also promotes greater confidence in employees, product knowledge and soft skills using tools and devices that employees already use.

Measuring the ROI of corporate learning
Source: Arist

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