When deciding to develop and implement a new eLearning course, stakeholders want to know what they are getting out of their investment. Though not all the impact of eLearning can be measured through financial variables, it is an important metric to keep in mind. And as ROI, or return on investment, is an already widely used metric in business, it makes for an effective way to discuss and evaluate an eLearning strategy.
The discussion of the financial return of training and learning strategies was brought up by Jack Philips in the early 2000’s. His work was presented as an addition to Donald Kirkpatrick’s model for training evaluation initially developed in the 1950’s. Kirkpatrick’s work defined 4 phases in evaluating training impact: reaction, learning, behaviour and business impact. Phillips established a fifth phase, ROI, by identifying the need for a bigger focus on comparing financial costs and benefits, ensuring accountability with stakeholders, the longevity of training initiatives and a metric for constant improvement.
ROI as a starting point
When evaluating learning strategies and training alternatives, an analysis of cost and benefits is essential to determine the smartest use of your budget. Digital learning offers great ways to approach a huge variety of topics, but it also presents higher initial investments than more traditional approaches, such as classroom learning. A good starting point is to analyse your options comparatively to determine which one is the best for the organization over time.
When eLearning wins the ROI battle
When compared to the traditional, classroom-based training model, eLearning has some clear benefits in the return on investment front. Every time a classroom training session is run, it incurs recurring costs. The instructor’s hourly wage, transportation costs, and even accommodation will count toward your budget. Do you need to rent space for the course? Better add that too. Multiply each of these costs by the number of sessions taught and you’re starting to get a sense of how these recurring costs can add up over time.
eLearning modules eliminate the need for an instructor and a specific space for the training to take place. These courses have the advantage of being easily repeatable at little to no extra cost for the organization. Although the upfront investment in eLearning is usually higher than setting up a classroom course, digital learning usually wins the overall costing race, long term.
What makes for a high eLearning ROI
Courses that thrive in an eLeaning format and ensure a great ROI share a few common characteristics. When considering what topics you should prioritize as potential eLearning modules, consider the following factors:
High usage
With a high number of learners taking advantage of eLearning, the benefits generated by the course quickly increase. In this scenario, the higher upfront investment quickly pays off by eliminating the need to set up numerous classroom training sessions.
Repeatable
eLearning has the best returns when the content is in constant demand. For example, orientation topics are a logical place to start because all new staff must take them. eLearning makes it easier to execute an ongoing training calendar while maintaining consistency in the delivery. Topics that are strategically repeatable go hand-in-hand with a high-usage audience.
Durable
To extend the active life of an eLearning course is important to consider the information included. Basing a course on data that quickly gets outdated reduces ROI because it creates the need for constant updates. A good eLearning professional is able to help management identify what works better as part of the course.
How to Get the Best ROI from Your eLearning Strategy
When deciding to develop and implement a new eLearning course, stakeholders want to know what they are getting out of their investment. Though not all the impact of eLearning can be measured through financial variables, it is an important metric to keep in mind. And as ROI, or return on investment, is an already widely used metric in business, it makes for an effective way to discuss and evaluate an eLearning strategy.
The discussion of the financial return of training and learning strategies was brought up by Jack Philips in the early 2000’s. His work was presented as an addition to Donald Kirkpatrick’s model for training evaluation initially developed in the 1950’s. Kirkpatrick’s work defined 4 phases in evaluating training impact: reaction, learning, behaviour and business impact. Phillips established a fifth phase, ROI, by identifying the need for a bigger focus on comparing financial costs and benefits, ensuring accountability with stakeholders, the longevity of training initiatives and a metric for constant improvement.
ROI as a starting point
When evaluating learning strategies and training alternatives, an analysis of cost and benefits is essential to determine the smartest use of your budget. Digital learning offers great ways to approach a huge variety of topics, but it also presents higher initial investments than more traditional approaches, such as classroom learning. A good starting point is to analyse your options comparatively to determine which one is the best for the organization over time.
When eLearning wins the ROI battle
When compared to the traditional, classroom-based training model, eLearning has some clear benefits in the return on investment front. Every time a classroom training session is run, it incurs recurring costs. The instructor’s hourly wage, transportation costs, and even accommodation will count toward your budget. Do you need to rent space for the course? Better add that too. Multiply each of these costs by the number of sessions taught and you’re starting to get a sense of how these recurring costs can add up over time.
eLearning modules eliminate the need for an instructor and a specific space for the training to take place. These courses have the advantage of being easily repeatable at little to no extra cost for the organization. Although the upfront investment in eLearning is usually higher than setting up a classroom course, digital learning usually wins the overall costing race, long term.
What makes for a high eLearning ROI
Courses that thrive in an eLeaning format and ensure a great ROI share a few common characteristics. When considering what topics you should prioritize as potential eLearning modules, consider the following factors:
High usage
With a high number of learners taking advantage of eLearning, the benefits generated by the course quickly increase. In this scenario, the higher upfront investment quickly pays off by eliminating the need to set up numerous classroom training sessions.
Repeatable
eLearning has the best returns when the content is in constant demand. For example, orientation topics are a logical place to start because all new staff must take them. eLearning makes it easier to execute an ongoing training calendar while maintaining consistency in the delivery. Topics that are strategically repeatable go hand-in-hand with a high-usage audience.
Durable
To extend the active life of an eLearning course is important to consider the information included. Basing a course on data that quickly gets outdated reduces ROI because it creates the need for constant updates. A good eLearning professional is able to help management identify what works better as part of the course.
Learn more about building a sound eLearning strategy that will help boost ROI in The Six Strategic Pillars of eLearning.
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