Online employee training offers an unmatched level of convenience and standardization when compared to traditional classroom-based training. Yet before organizations spend any money on a new training program, they want to make sure the benefits outweigh the costs. This is why organizations try to calculate their return on investment (ROI) to determine the effectiveness of online employee training.
What does ROI mean for Online Employee Training?
Revising your company’s training program to include online training is no small task. This is why they want to make sure it is worth the effort. Businesses leverage ROI to determine how successful their programs and other ventures are relative to their costs. It can be calculated using the equation:
ROI = (Gains – Costs)/Costs
It’s easy to determine the cost of online employee training, but how do we know exactly what is gained? While many of the gains from online training are intangible, we can still attribute a monetary value to online training in order to calculate ROI. Once calculated, companies can use this number to get a better understanding of the importance of online training programs.
What are the gains from Online Employee Training?
There have been numerous benefits documented that prove how training videos are effective. Organizations can upload centralized training videos for consistent messages at multiple locations. This allows organizations to easily cover a large breadth of material in a format that appeals to different learning styles.
While these thoughts are important for any organization, they are only qualitative benefits. In order to calculate ROI, we need quantitative values. Such numbers will vary from company to company, but there are a few benefits that apply to all organizations that will give you an idea of what your company’s online training ROI might look like.
For starters, online training videos save training instructors valuable time. If you consider that a training instructor has a medium salary of $60,360 per year according to the Bureau of Labor Statistics, you can better quantify the value of hours saved scheduling, conducting or tracking training. Additionally, since online training can be available to employees at any time, companies can reduce the amount of downtime from classroom training. With most companies reporting an average of $160,000 lost per hour of downtime, the gains from online training really start to pile up!
Finally, it’s important to consider how online safety training videos might improve procedures in the workplace. According to OSHA, there are an average of 3 workplace incidents per 100 employees. If the added effectiveness of online training helps to prevent just one worker injury, this can save a company an average of $38,000 in wages, productivity loss, and medical expenses.
Each company’s ROI will vary based on these numbers and numerous other factors. Don’t forget that your costs will have an impact on your ROI as well. Luckily the costs of creating online video courses and training materials can be dramatically reduced by selecting a training software that offers a variety of important online courses, videos, and downloadable quizzes.
Remember to keep these factors in mind and more the next time you evaluate the ROI of your organization’s training program!