Return on the Effort: Measuring Learning & Development’s “Other” Impact
If a learning and development organization’s primary goal is offering solutions that impact business results and employee performance, measurement and data is the evidence and proof for achieving the goal. Calculating return on investment (ROI) shows L&D’s impact by uncovering the financial cost compared to benefit for dollars invested in employee development. So how do we measure the impact of effort beyond financial return, business results and employee performance? I’m glad you asked.
Return on investment, impact on business results and employee performance improvement are the greatest indicators of L&D’s impact. There are also indicators for the impact of effort undertaken to provide meaningful, valuable learning solutions. I call these indicators return on the effort (ROtE).
Measures for ROtE (return on the effort) show the intangible benefit for the work L&D organizations and teams are doing to provide value and service to the business. ROtE measures show the indirect impact on business results and employee performance and help with telling the whole learning story. These measures capture perception, position and popularity.
Measure perception, position and popularity for ROtE.
Return on the Effort Measures
Employee satisfaction surveys – These surveys measure the hearts and minds of employees and their perceptions of the business. Survey statements like, "The business creates opportunities for me to learn, grow and develop" or “Learning and professional development is supported and encouraged”, measure what employees think about their learning experience. Exit survey data may also shed light on employees’ perception of L&D. These surveys capture the employee experience with learning and development and show return on the effort for offering learning solutions that meet employees' needs.
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Industry awards and recognition – These accolades are strong indicators of the L&D organization’s position among peers in the industry. Industry awards and recognition focus on innovation, leadership in practice and best-in-class learning solutions. Training Magazine’s Top 125, Chief Learning Officer Learning Elite and Association for Talent Development Awards are examples of awards and recognition. These measures may also show up in “Best Places to Work” awards and invitations to speak at industry events. Receiving an award (or even being nominated) or being recognized for excellence in learning is a great way to measure the return on effort for offering learning solutions that are cutting-edge, high impact or exemplary models of learning.
Self-selected utilization – It’s easy to measure utilization of learning solutions that are mandatory or required for compliance; employees have to do it. What about learning solutions employees seek out on their own? For learning solutions offered by L&D, what is the level of employee engagement and use? If social learning is the offer, are employees engaged through blogging, online discussions, “liking” and sharing? If microlearning is the offer, are employees accessing the content? If elective courses is the offer, are employees enrolling? Employee self-selection and utilization uncovers return on the effort by measuring the popularity of learning solutions employees select themselves.
ROtE helps with telling the whole L&D story.
The data we get from return on effort helps tell the whole L&D story. When we combine ROtE, ROI and data that measures impact on business results and employee performance, we have a powerful, compelling story that shows learning and development’s value in the business. Are you seeing a return on the effort for the learning solutions you offer? It’s a question worth asking and even more important, worth measuring and answering.
About the Author
Kevin M. Yates is a learning and development detective and solves measurement mysteries. He uses facts, clues, evidence, and data to investigate the impact of training and learning.
C-Suite Executive: Chief People and Culture Officer | Life and Leadership Coach | Mentor | International Speaker
9yGreat thinking Kevin, brings a different and valuable perspective; thanks for sharing!
Hello Kevin, thanks for sharing this. As I get more into learning and development I see the importance of measuring the return on investment. Thanks Kim for forwarding.
Thanks for sharing. This is helpful. My volunteer time is devoted to LD. Nice to see a perspective on ROI
Another way to measure perception is through a Net Promoter score. We use this question, "How likely are you to recommend this training to a friend or colleague? (A 0 is not at all likely; a 10 is extremely likely.)" People outside of learning recognize this number. Another way we track perception is what I call a buzz question. How much buzz or internal excitement in the learner did the training create? "How likely are you to share what you learned with others?" We are looking for people to select either, "I already have a plan for how I will share what I learned with others."or, "I am very likely to share what I learned with others." When you mentioned industry awards, another reason to apply for these is to determine a baseline rank and then work to improve your ranking. The best part of your post is, the more data that you have about your learning efforts, the better a story you will have.
Great work, Kevin!