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In today’s tech-driven world there isn’t too much dispute about the fact that elearning is one of the most effective methods for corporations to conduct employee training.
The hurdle that elearning developers must overcome is establishing their return on investment or ROI. They find themselves in a position of needing to validate that their program has distinct advantages.
The cost-effectiveness, flexibility, and convenience of e-learning programs are just the tip of the iceberg when it comes to the reasons corporations utilize them. As with all corporate initiatives, it is necessary to determine the value of the training program for the company.
For elearning developers to prove their product is worth the investment, they first must find a way to measure the ROI.
First, a simple definition of Return on Investment:
“A measurable unit that represents an excess of value received (Return) over the cost (Investment) incurred for the program.”
In order for a program to be considered successful, it must generate a positive return. This return may be represented by higher productivity resulting in greater profits or it may represented by a decrease in accidents in the workplace. The ROI must be linked to meeting the specific training needs of the company.
What needs to be considered when figuring up the ROI of an elearning program?
The first thing to look at is the cost or the investment.
The required workforce. How many personnel are required to implement the program? Don’t forget to include the cost for any outside consulting that is needed. There are also administration, development, and management costs that should be factored in.
Possible technological upgrades. Are there new technologies needed for this new program? Does any older equipment need to be upgraded in order to handle this latest system? These costs also need to be a part of the ROI equation.
Program content. Whether the content is custom or “off-the-shelf,” it is still a significant portion of the overall cost of the program. In addition, an off-the-shelf choice may require some changes to make it more suitable for the particular business utilizing it.
Miscellaneous costs. There can be costs related to a change in programs that aren’t as apparent. For example, personnel can be changed around or resources may need to be distributed differently. Expect some hidden costs.
The next consideration is the benefit or return for a company utilizing elearning programs.
Adaptability. Employees are given the ability to learn anywhere they wish and at a time that is convenient for them. This increases the chances that workers will be more welcoming to those learning experiences that enhance their job performance. Job satisfaction may increase.
Fewer interruptions. Corporations won’t have to change schedules or try to fill in gaps because large groups of employees are in training sessions. The productivity level can remain at its normal rate because employees have the flexibility to do their training tasks on their own time.
Individualized training. The nature of elearning games makes them adaptive to each person and the speed at which they can cover the material.
Saves money. One of the biggest selling-points for elearning developers to remind their clients about is the money that is saved by using elearning programs. Corporations no longer need to pay for their employees to travel for trainings, pay for a trainer, or incur downtime in production, which can be major expenses.
Elearning developers must keep in mind that any elearning program has to prove it is worth the investment. When comparing the costs to the benefits, it should be easy for a business to see that elearning is a valuable option.
Contact Designing Digitally, Inc. to learn how utilizing an elearning company can provide a tangible return on investment for your company.