The economics of corporate learning are important to corporate success, although they can be complicated at first glance. How can companies utilize an economic perspective to evaluate corporate learning? The key is measuring ROI.
Learning and development is the most direct method of syncing employee skill sets with company goals and projects. It involves many types of development programs, and millions of employees use it every year. Common courses include compliance, soft skills, and upskilling. Learning and development is only becoming more common, with companies of all sizes investing more money in training than ever before.
However, only 8% of learning and development teams calculate the ROI of their programs. For the other 92%, there are no success metrics attached with training, meaning it can be unclear whether or not training is cost-effective. Unfortunately, learning and developments are often more harmful than beneficial, racking up massive costs and failing to promote employee satisfaction. In fact, studies suggest that 25% of participants forget what they learned almost immediately.
To address the failings of learning and development programs, companies can consider using ROI calculators to evaluate the success of their programs and make adjustments if necessary. ROI calculators work by attaching value to KPIs like internal mobility and employee retention. Using calculators can save time, money, and energy, while also resulting in higher revenue and employee satisfaction.