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The ROI of LearningWhy measuring learning is key in a new world of work

ABSTRACTA highly engaged workforce is not only more productive–engagedemployees are shown to drive higher levels of customer satisfaction,profit and shareholder returns.1 There is a clear link between learningculture and engagement.2 However, despite billions of dollars spentin learning and development, corporations are failing to engage theirpeople. This apathy is impacting customer satisfaction, profit, revenuegrowth at the corporate level, and is costing the US economy up to 550 billion in lost productivity each year.This paper will examine the shifting demographics and expectations ofthe workplace, looking at the impact of a new generation of millennialworkers on learning engagement, corporate learning, and developmentmethods. It will share resources to enable learning professionals to showthe value of learning by measuring the returns on their training ng-employee-engagement-statistics/Bersin by Deloitte, Becoming Irresistible: A New Model for Employee Engagement (2015)

Disengaged Employees at What Cost?A highly engaged workforce is not only moreproductive. Engaged employees are shown todrive higher levels of customer satisfaction,profit and shareholder returns.3 It is no wonderthat employee engagement is a top-of-mindissue for business leaders, eager to reap thebenefits of a fully engaged workforce to achievetheir business objectives.Employers in all sizes of organizations aremaking heavy investments in training; seekingto activate and engage workers. According toBersin by Deloitte’s 2014 Corporate LearningFactbook, US spending on corporate trainingin 2014 grew by 15% (over the previous year) to 70 billion US and 130 billion worldwide, withthe average company investing nearly 1,000per employee. In 2015, US corporations reporteda further 10% increase in training expenditureswith the highest spending devoted tomanagement and leadership.4And yet despite these significant traininginvestments, something is failing to click.A staggering 68% of employees worldwide arenot engaged (or actively disengaged) at work.5They are simply showing up and killing time,doing the bare minimum required to get theirjob done. This widespread issue of employeedetachment is costing the US economybetween 450 and 550 billion in lostproductivity gagement-stagnant-2015.aspx62015 Gallup Research, Majority of US Employees Not Engaged, Despite Gains in 201434

Training’s Failure of ReturnWith this substantial investment in training, why are westill struggling to increase engagement and prove thevalue of learning and development?Part of the challenge is the changing demographicsof the workforce and the changes in how we work. In2015, millennials (those born between 1980 and 2000)became the largest portion of the workforce.These individuals are ambitious, loyalty-lite, andhungry for development opportunities. They are alsoincredibly tech-savvy: hyper-connected, always-on,social, and mobile. They bring unique learningdemands to an organization, and fully expect thecompany to adapt learning and developmentstrategies to meet their needs.At the same time, across all demographics in theworkforce, our way of working is changing. We aremore connected, the lines between work and homeare more fluid, and innovation and change areexpected and required for businesses to thrive in themarketplace. For individuals, this means there is aneed to keep skills sharp constantly to maintainemployability. As Stephen Covey says in his bookPrimary Greatness: “Security lies in the ability tocontinue to produce what the marketplace wants, andthose wants are constantly changing. Unless peoplelearn, change, grow, and progress to accommodatethe market, there can be no security. Security lies inthe power to continually learn.”7Corporations seeking to attract and retain millennials,and meet the needs for continual learning across theworkforce, will need to shift traditional face-to-facetraining methods to integrate modern online learningplatforms capable of supporting a more dynamic,collaborative learning format while delivering contentin small, easily consumable bit-sized chunks.7Covey, Stephen R. 2015. Primary Greatness - The 12 Levers of Success. New York: Simon and Schuster.

“Employers must adjust corporate values, workplace environment, and team structures tostay competitive. Integrating corporate education into a company’s strategic goals is theway to enact these needed changes and create and maintain an agile business. By investingin corporate learning, employers have the power to address millennial retention in three keyareas: talent attraction; job readiness; and culture change.”- Jason Wingard, Dean and Professor, Columbia University’s School of Professional Studies.8Recognizing that corporate learning goeshand in hand with competitive advantage,global organizations also need to ensure learningopportunities are fully scalable across theirorganization. This means efficiently andcost-effectively providing learning in manylanguages and learning formats, in all parts ofthe world, and via 24/7 access. It’s simply notaffordable to scale traditional face-to-facetraining methods to meet the needs of a large,global, and increasingly virtual enterprise.Another part of the challenge is the abilityto analyze and track returns on learninginvestments. With greater investments inlearning, the need to track and measurelearning programs is ever-increasing–yet manycompanies struggle with return on investmentof learning. According to ATD’s recent studyon Evaluating Learning, 65% of organizationssurveyed do not measure the business resultsof their learning investments.9Learning and development professionals arewell-versed in areas such as learning objectivesand designing effective programs. When it comesto discussing hard measures in financial termsthough, some turn away and avoid this type ofanalysis as they feel ill-equipped to discuss theirprograms in financial terms. However, learningprofessionals who are unfamiliar with return oninvestment can remember that developmentapplies to their work as well–applying a growthmindset, to quote Carol Dweck, and becomingskilled in ROI is an investment in their ownknowledge and career.10Learning is a key component of the new worldof work, and sharing the value of learning isincreasingly important. We’ll review the industrystandards for evaluation and ROI, and sharesome methods to apply these to real worldprograms. This paper can serve as a start onthe journey to being able to speak with confidenceabout the impact of programs, or as a refresherto dust off ROI skills and prove the value oflearning in the ingard/want-millennials-to-stay b 9824258.htmlATD. 2016. Evaluating Learning–Getting to Measurements That Matter. Research report, Alexandria, VA: ATD Research.10https://www.ted.com/talks/carol dweck the power of believing that you can improve?language en89

Tracking LearningEffectiveness a Topic of ConcernWith corporate training investments nowreaching well into the billions, and 90% ofcompanies indicating that building capabilitiesis a top 10 priority for their organization11, it isnot surprising that measurement of trainingeffectiveness is a topic of concern for manytraining and development practitioners. Thisconcern is further magnified for organizationsthat are adopting online learning, as there aretypically higher upfront investment costs thantraining delivered in a traditional classroom-stylesetting, for instance, the purchase of a learningplatform and the adaptation of traditionalinstructor-led curriculum into interactive,dynamic online or blended content.1112When measuring learning anddevelopment effectiveness, organizationstypically want to know: Are learning programs meeting their objectives? What topics are most valuable to learners? Are they using the right delivery methods? Are learners engaged and applying thecontent in their roles? Are learning programs able to demonstratereal/tangible benefit for dollars invested, such as:Improved productivityDecreased errorsHigher customer satisfactionIncreased employee retention12Cermak, Jenny, and Monica McGurk. "Putting a Value on Training."McKinsey & Company. McKinsey & Company, July 2010. Web.Polchin, Rose. "Measuring the Effectiveness of Your Training Program."ICMI. UBM, 2 July 2014. Web.

Determining Training EffectivenessKirkpatrick’s Evaluation ModelOrganizations measuring training effectivenesscan start with Kirkpatrick’s four-level trainingevaluation model, as the de facto industry standard(see sidebar).13 It provides a robust model to examinethe impact of learning, across a variety ofquantitative and qualitative success outcomes.Developed by Dr. Donald Kirkpatrick in1954, the Kirkpatrick Model has becomethe industry standard for trainingevaluation. In 2010, Dr. Jim Kirkpatrick andWendy Kirkpatrick clarified the originalintent of the Kirkpatrick four levels withthe New World Kirkpatrick Model toincorporate greater aspects of employeeengagement.Evaluating the FinancialReturns–Phillips ROI MethodologyLevel 1: ReactionAs executives begin to question training’s valuecontribution to the company’s bottom line, and ascorporations invest in new online learning platforms tocater to the modern workforce needs, measurement ofhard cost returns becomes imperative.Dr. Jack Phillips took Kirkpatrick’s levels and added afifth level for ROI as a measurement of the businessimpact of a training program. Phillips’ methodologycovers the planning, data collection, analysis, andreporting necessary to determine ROI results.14 Phillipsmethodology is used by many training professionalsto examine the return on investment of training.The degree to which participants find thetraining favorable, engaging and relevantto their jobs.Customer SatisfactionThe original definition measured onlyparticipant satisfaction with the training.New World Additions:EngagementThe degree to which participants areactively involved in and contributing tothe learning experience.RelevanceThe degree to which training participantswill have the opportunity to use or applywhat they learned in training on the job. Sidebar continued on next tute/