Return on Investment (ROI)

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Return on Investment (ROI)

Return on Investment (ROI)

Clients are often concerned with the training's return on investment (ROI). After investing money, time, and resources to train employees, it becomes important for stakeholders to know that the instruction has paid off.

Importance of Measuring ROI

Return on investment for clients can justify the money and resources spent on the training. In an era when companies are cutting costs, training is often an expense that must be justified to upper management to be approved. Therefore, organizations want to know that it will be worth the investment. They want a tangible way to measure results and see change.

For instructional design professionals, return on investment can equate to satisfied clients, which can in turn lead to repeat business.

How to Measure ROI

Measuring ROI can depend on the training need that was addressed. For example, if the training was to address an increase in customer complaint calls to a company, then to measure return on investment, the organization would determine how many complaint calls were coming in after training was completed.

If the goal of the course was to increase sales in an organization, a measurable return on investment would be increasing sales figures.

In our business writing course, measuring the ROI could first include assessing learners post-training. Can they now write an appropriate business communication? In other words, can they apply what they have learned, achieving the course's objective?

The original issue that precipitated the need for the learning was customer complaints. Have complaints decreased since the training was completed? This would indicate that value was achieved and the training was indeed successful.