Employee training does not come cheap. We know that. And it’s natural to want to know if your training budget is being well spent. That’s why it can be useful to calculate the quantitative ROI of your training. ROI is a useful way to measure whether a given course or training program has been cost-effective. In the following lines, we’ll explore five simple ways to measure the quantitative ROI of any course or training session – stay tuned!
What is ROI?
The traditional ROI formula for training would be: Program benefits (net profit), minus training costs and then divided by program costs. This indicates the amount of euros returned as profit for every dollar spent on a program. It can also be converted to a percentage by multiplying by 100. In addition to the traditional quantitative ROI formula, other methods are sometimes included under the term “return on investment”. One of these is the payback period: the total investment divided by the annual savings, expressed in years.
The payback period calculation works best with long-term parameters, such as improving staff retention levels or reducing costs among staff. The results may only be evident over the long term, so it is best to calculate annual savings through quantitative ROI.
Why calculate the quantitative ROI of employee training?
Quantitative ROI calculations of employee training are intended to answer two very similar questions:
- Are employees acquiring new knowledge and skills that will enable them to increase efficiency and/or reduce company costs?
- Can we measure the cost of this training against the benefits to both the individuals and the organization?
Quantitative ROI can be used to justify the expense of a training course, a business coaching plan, among others. However, when it comes to business coaching, the results are usually qualitative. This prevents the business owner from knowing if the investment in human resource preparation is really profitable. With ChVmpion Mind this reality is completely different. Since, achieving an improvement with ChVmpion Mind means great savings for the company and greater impact for the users. And most important of all, you can obtain a quantitative and qualitative ROI in euros.
ChVmpion Mind allows you to measure quantitative ROI in EUROS…
That’s right, ChVmpion Mind is the first business coaching platform that allows you to measure the quantitative ROI of your company. In addition, at a low cost per employee and with guaranteed results after 21 weeks of constant work. With the ChVmpion Mind platform it is very easy and simple to track the effectiveness of the training and measure the value that the learning you have contributed to create within your team.
And nothing could be more accurate than these words from José L. Meléndez CEO of ChVmpion Mind:
“If coaching is the water for someone to become a champion, ChVmpion Mind is the structure for the champion to drink that water properly.”
Who should use quantitative training ROI calculations?
Quantitative ROI often generates various ideas or concerns about how to measure and use it. In particular, what to focus on and what value to place on the results. If these concerns are shared by team leaders or business owners it means that there is a gap in terms of employee profitability and productivity. Which, gives rise to the search for solutions and alternatives such as business coaching. However, after making an investment in coaching, the results are not always measurable in money. Rather, they are reflected in qualities that do not speak for themselves when it comes to a financial balance sheet.
ChVmpion Mind offers measurable results through quantitative ROI. We know that some organizations lack the confidence or the flexible environment necessary to use ROI results. So, it is important to note that companies must be willing to learn, change and try new things, especially when it comes to employee training development. Organizations that lack the right attitude and approach may not find quantitative ROI calculations useful or valuable. You’re probably wondering, how can I measure my staff’s progress in terms of their personal well-being and its impact on the work performed, or what good does it do me to invest in a program that improves my employees’ habits if it means nothing to my company’s quantifiable ROI?
That said, here are some simple ways to measure the quantitative ROI of staff training:
Option 1. Using a staff training ROI calculator
The first way to measure the quantitative ROI of any training is to use a training ROI calculator. This is a simple way to calculate the ratio of the total cost of the training program to the total benefits of a training program. This option works best for highly structured jobs where monetary benefits are easy to isolate.
Option 2. Use supervisor evaluations to calculate the ROI of staff training.
Quantitative training ROI calculators work very well for easily measurable net benefits, such as sales figures, tasks, highly structured and clearly defined jobs. But what about flexible, unstructured jobs, such as management positions? The most common approach is to use supervisor evaluations. This approach allows you to successfully measure the quantitative ROI of employee training.
Option 3. Create an impact study to calculate employee training ROI
The third simple way to calculate quantitative ROI is to create an impact study. A “business impact” is any change brought about by training. In the evaluation planning phase, you assess the objectives of a program and develop evaluation plans and baseline data. In other words, you decide what inputs and indicators you are looking for. During the data collection phase, data are collected during program implementation, measuring satisfaction, feedback and learning. Most commonly, surveys are used and training participants are asked to rate the training received in terms of satisfaction and feedback.
After the training is completed, data is collected on the implementation, application and business impact of the training. This could include another survey asking participants to conduct a self-evaluation or it could include an observation by peers or supervisors. To measure business impact, you could collect relevant financial data related to the organizations’ operations. In data analysis, we isolate the effects of the program, convert the data into monetary value and calculate quantitative ROI. This includes capturing program costs and identifying intangible measures.
Sounds like a lot of work, right? Well, don’t worry, because with ChVmpion Mind you can do this and much more from true experts in the field with over 20 years of experience.
Option 4. Use ChVmpion Mind as a training effectiveness measurement platform to calculate the quantitative ROI of staff training.
The fourth and possibly the easiest way to measure the quantitative ROI of training is to use ChVmpion Mind as a support. This is a platform for measuring the effectiveness of training. We are the best platform and can help you generate reports for stakeholders to show the impact of training and the value it has brought to the organization. This undoubtedly helps to emphasize the return due to training and justify the initial costs.
ChVmpion Mind is the perfect opportunity to boost the motivation of your staff. Don’t forget that, according to statistics, 54% of employees in Spain claim to feel demotivated in their current job.