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Demonstrating
Positive Elearning ROI
6 TACTICS FOR SUCCESS
By Savanah Barry | lynda.com
www.lynda.com/industries | enterprisesolutions@lynda.com
2 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
How can you and your organization
demonstrate positive elearning return
on investment (ROI)?
Find out in this guide, which describes six key strategies.
Identify Define Establish Understand Consider Measure
3 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
03 Why elearning?
05 Tactic No. 1: Identify
07 Tactic No. 2: Define
09 Tactic No. 3: Establish
1 2 Tactic No. 4: Understand
14 Tactic No. 5: Consider
22 Tactic No. 6: Measure
26 Achieving Success
27 Authors
28 About lynda.com
Table of Contents
4 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Why Elearning?
Elearning revolutionized how individuals, teams, and entire organizations build skills
and knowledge. Measuring the effectiveness of elearning is critical to confirming
it delivers tangible benefits. Inability to justify value and success erodes stakeholder
buy-in and discourages project champions.
5 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Identify
At its core, elearning is about solving problems. But it’s not
enough to see problems only from the learner or manager perspective.
You also need to understand the business case for elearning.
6 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
TACTIC NO. 1
Identify training needs
Identify training needs in ways that stakeholders will understand by mapping them to the needs of
the business. To get started with an elearning initiative ask, “What are we trying to shift? Do we need
a training strategy to move the business forward? Do we need to adjust operations to streamline
day-to-day activities?”
example:
The sales team at a manufacturing company doesn’t know how to effectively use a new cloud-based application.
Impacts of this include lack of data centralization, a decrease in team collaboration, and an increase in an
already present skills gap. Productivity is down 15 percent. Employee morale and retention is a big problem.
The need is evident. The company needs to invest in providing the sales group with training opportunities that
get all team members up to speed.
7 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Define
It’s important to define the elearning goals for your organization.
It’s even more important to define and set the right goals.
8 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
TACTIC NO. 2
Define goals
With your needs in mind, set goals in collaboration with key
stakeholders. Discuss what a successful elearning program
would look like.
GOALS MIGHT INCLUDE:
75% reduction
in software-related IT help requests
100% of employees
trained on the new software in 3 months
Ongoing training
opportunities for power users
example:
An organization seeks to increase employee productivity so it deploys
a new software application. Currently, each employee spends an
average of two hours per week contacting IT for help or searching
online for assistance getting unstuck. IT is swamped with requests,
leaving inadequate time to work out bugs following the software launch.
9 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Establish
Success metrics should support training needs and confirm that the goals you set are met.
Align your metrics with your goals. Good metrics help benchmark success, and discussing metrics
with stakeholders provides clear understanding of the data you need to collect.
10 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
TACTIC NO. 3
Establish your success metrics
The Kirkpatrick Model, based on four levels of learning evaluation, shows how to measure the
effectiveness of an elearning program.
example:
If the goal is to get 100 percent of a sales team trained on new software, then success metrics should
measure knowledge building. They also should evaluate the result of that learning, or the business impacts.
Your reporting might include:
• Number of training registrants (measures reaction to learning opportunities)
• Number of IT tickets created before and after learning took place (measures behavior change)
• Hours spent on training per employee
Training
Managers
Executives
& CEOs
ManagersSupervisors
FOUR
—
Learning Results
& Impact
—
Has the course helped improve
business results?
ONE
—
Reaction to
the Learning
—
Do the course
participants like it?
THREE
—
Behavior Change
—
Do participants use their
newly acquired skills on the job?
TWO
—
Knowledge
—
What knowledge, skills, attitudes,
confidences, or
commitments were acquired?
EVALUATION LEVEL
EVALUATORS
11 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Metrics To Measure Success
12 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Understand
To fully understand the benefits of elearning, analyze the costs.
This includes immediate and ongoing administrative and subscription costs.
13 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
TACTIC NO. 4
Understand your investments
personnel costs
These costs cover internal employee
and external contractor wages. Also
factored into the equation are project
direction, development, management,
and administrative expenses.
platform costs
These costs cover the monthly or annual
elearning provider subscription. Price
varies depending on the solution and
contract terms.
hidden costs
These costs are associated with
transitioning to a new learning program,
as well as personnel disruptions,
resource reallocations, existing project
deferrals, and team realignments.
14 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Consider
Consider the benefits. Elearning offers a wide range of benefits.
They may not all apply to your organization, but it’s likely that a significant number will.
15 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
TACTIC NO. 5
Consider the benefits
Some benefits can be quantified. These include training cost
reductions, productivity changes, time, and quality. All are examples
of hard data.
Other benefits are more difficult to quantify–but are equally
important–including customer service changes, morale, creativity
boosts, talent development improvements, and organizational
culture shifts.
In addition to these, discuss potential benefits specific to
your organization.
16 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Benefits: Additional Discussion
reDUction of traininG costs
Producing learning content or sending employees to training offsite takes time and costs money. But elearning
happens online, reducing inefficiencies and expenses. ROI goes up when a course costs nothing to develop and
is easily accessed.
reDUction of time spent traininG
In 2013, the average employee spent 31.5 hours in training, with 55 percent of that occurring in a classroom setting,
according to the 2014 Association for Talent Development (ATD) State of the Industry report. But elearning lets
individuals learn at their own pace at times that work best for them. A Brandon Hall Group study reported that elearning
requires from 40 to 60 percent less employee time than when the same material is delivered in a traditional classroom
setting. You can calculate the reduction in training time against each employee’s salary to realize the savings.
improvement in traininG sUccess
Classroom-based instruction is frequently “one-size-fits-all.” But instructor-led training supplemented with elearning
has the highest success rate, because it lets in-person training sessions be focused and personalized to audience
needs, according to Learning Solutions Magazine. Trainees can consume elearning training outside of the classroom
setting and later come to in-person sessions equipped with knowledge for meaningful discussions.
17 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com17 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
improvement in employee onBoarDinG
Organizations lost nearly a quarter of all new employees within a year, according
to the 2012 Allied Workforce Mobility Survey: Onboarding and Retention. Major
contributing factors were underperforming onboarding programs and lack of training.
The study indicated that the cost of not training new employees properly is steep.
Filling one position costs on average $10,731 not including relocation costs, which
alone can reach more than $20,000.
But elearning allows an organization to streamline onboarding by getting new
hires quickly up to speed on software and skills related to their roles. According
to the Aberdeen Group: Onboarding Benchmark Report, organizations reported
that effective onboarding improved retention rates by 52 percent and time to
productivity by 60 percent. For employees, long term outcomes of successful
onboarding included job satisfaction and organizational commitment.
Effective onboarding
IMPROVED
RETENTION RATES
BY 52%
and time to
PRODUCTIVITY
BY 60%*
*Aberdeen Group:
Onboarding Benchmark Report
18 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
improvement in employee retention
Employees who are not provided training opportunities are more likely to find
new jobs, according to the Harvard Business Review. But elearning allows employees
to experience continuous development opportunities, making them feel more
connected to their roles. And having a next level of training always available creates
an environment of perpetual challenge, encouraging the development of a learning
culture. The Society for Human Resource Management (SHRM) describes the cost
to replace an employee as 50 to 250 percent of annual salary and benefits.
fewer online searches
Employees spend hours online looking for answers to simple questions in a vast sea
of information. But effective online training provides instruction on a wide range
of subjects and software applications, aggregating answers in a single resource with
a consistent level of quality.
19 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
increased productivity
Elearning provides ongoing training opportunities, which can boost productivity (often measured by units produced,
items sold, forms processed, and tasks completed). According to an IBM report, companies that use elearning
tools and strategies have the potential to boost productivity by up to 50 percent. For every $1 that company spends
on training, it realizes an estimated $30 worth of productivity.
learning program roi calculator
Plug your data into this equation to evaluate the potential productivity gains and calculate the ROI of
your learning program:
X –[( ) Cost of Elearning
Program
Hours Saved
Per Year
Oganization Wide ]
Cost of Elearning Program
Hours Worked
Per Year
Average Salary
Per Employee
20 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com20 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
increaseD employee enGaGement
Employee engagement is a challenge at many organizations. But workers provided
training that relates to their jobs and supports personal growth are more likely to
feel completely engaged and connected to the workplace, according to the Harvard
Business Review.
When employees are not engaged, they don’t put energy or passion into work.
Actively disengaged employees are distracted and unhappy. Gallup reports that
30 percent of employees are engaged, 52 percent are disengaged, and 18
percent actively disengaged.
A disengaged employee costs an organization approximately $3,400 for every
$10,000 of salary (Gallup). But organizations with highly engaged employees can
decrease turnover by 87 percent (Human Capital Institute).
When compared to competitors, organizations with high employee engagement are
12 percent more profitable and 18 percent more productive (Human Capital Institute).
Organizations with highly
engaged employees can
DECREASE
TURNOVER BY 87%*
*Gallup
A disengaged employee costs
an organization approximately
$3,400 FOR
EVERY $10,000
OF SALARY
EMPLOYEE ENGAGEMENT COST
21 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Often, organizations struggle with how to measure employee engagement.
Gallup proposes asking employees to respond yes or no to the following statements:
yes no
I know what is expected of me at work.
At work, my opinions seem to count.
I have the materials and equipment I need to do my work right.
The mission or purpose of my company makes me feel my job is important.
At work, I have the opportunity to do what I do best every day.
My associates or fellow employees are committed to doing quality work.
In the last seven days, I have received recognition or praise for doing good work.
I have a best friend at work.
My supervisor, or someone at work, seems to care about me as a person.
In the last six months, someone at work has talked to me about my progress.
There is someone at work who encourages my development.
This last year, I have had opportunities at work to learn and grow.
22 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com22 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
A leading indicator of employee engagement is the effectiveness of a manager.
Effective managers empower employees, recognize their contributions, and seek their input. It takes a specific
skill set to be a great manager. Companies that hire or promote effective managers increase the odds of successful
employee engagement. A manager role should be viewed as unique and requiring a specific skill set.
Explore these curated lynda.com online tutorial playlists designed to help managers be more effective:
1. Develop: Empower managers to coach and develop employees,
build business relationships, and provide effective employee feedback.
www.lynda.com/develop
2. Delegate: Explore one of the keys to managerial success—the ability to effectively delegate responsibility.
When managers delegate work to employees, they develop employees’ confidence, leadership, and work skills.
www.lynda.com/delegate
3. Communicate: Effective communication is a fundamental management skill.
Explore how to provide feedback—both good and bad.
www.lynda.com/communicate
23 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Measure
You’ve identified needs, set goals, established success
metrics, analyzed investment costs, and considered likely benefits.
Now its time to measure your elearning success.
24 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
TACTIC NO. 6
Measure training success
Conduct a survey
Distribute pre- and post-learning questionnaires to a variety of
employees from numerous departments—including individual
contributors, managers, and executives. Make sure respondents
represent a cross-section of your organization.
Conduct the pre-learning survey one month before elearning
begins. Share the post-learning survey two months later.
25 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Pre-learning feedback should cover:
• The effectiveness of current training initiatives
• Current opportunities for learning and
development
• Emphasis placed on learning and development
• Resources used for career growth or
skills development
Post-learning feedback should cover:
• The effectiveness of elearning and
new training initiatives
• Current opportunities for development
• Emphasis placed on learning and development
• Skill increases realized as a result of elearning
• Resources used to help in career growth
or skill development
For more information, view a questionnaire that lynda.com clients use to survey
end users and understand the effectiveness of online learning.
26 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Test a focus group
Analyze impacts by researching the effects of your elearning
program. Invite employees to participate as members of a control
group. Test their skills before and after elearning.
Use assessments
Assessments help learners and their organizations measure
improvement. Organizations that use elearning solutions offering
assessments can verify that time spent training was worthwhile.
Analyze impacts by researching the effects of your elearning
program. Invite employees to participate as members of a control
Test a focus group
Analyze impacts by researching the effects of your elearning
group. Test their skills before and after elearning.
27 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Achieving success
Using these tactics, you can be better equipped to demonstrate that your elearning program
has positive ROI. You will have successfully identified training needs, defined your goals,
and established what success looks like. By understanding the costs and benefits of your
elearning program, and how to measure learning, you can set the stage for success.
28 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
Savanah Barry
Lead Generation Specialist
Enterprise Marketing, lynda.com
Savanah Barry is a marketing specialist at lynda.com focused on providing enterprise learning
solutions to academic institutions, businesses, and government agencies. She is passionate about
helping organizations achieve learning goals.
Author
29 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com
For 20 years, lynda.com has helped students, leaders, IT and
design pros, project managers—anyone in any role—build
software, creative, and business skills. We work with the best
instructors. Our production standards are second to none.
And with training that is quick to market, we’ve grown our
online video-based content library to include thousands of
engaging courses.
Now a LinkedIn company, lynda.com serves more than
10,000 organizations. With tutorials presented in five languages,
lynda.com is a global platform for success.
About lynda.com
Contact us for lynda.com
Enterprise Learning Solutions pricing.
US: 1 (888) 335-9632
International: +1 (805) 477-3900
EMEA: +44 (0) 1252 416554
APAC: +61 2 9779 1582
email: enterprisesolutions@lynda.com
web: www.lynda.com/industries

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Demonstrating Positive Elearning ROI

  • 1. Demonstrating Positive Elearning ROI 6 TACTICS FOR SUCCESS By Savanah Barry | lynda.com www.lynda.com/industries | enterprisesolutions@lynda.com
  • 2. 2 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com How can you and your organization demonstrate positive elearning return on investment (ROI)? Find out in this guide, which describes six key strategies. Identify Define Establish Understand Consider Measure
  • 3. 3 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com 03 Why elearning? 05 Tactic No. 1: Identify 07 Tactic No. 2: Define 09 Tactic No. 3: Establish 1 2 Tactic No. 4: Understand 14 Tactic No. 5: Consider 22 Tactic No. 6: Measure 26 Achieving Success 27 Authors 28 About lynda.com Table of Contents
  • 4. 4 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Why Elearning? Elearning revolutionized how individuals, teams, and entire organizations build skills and knowledge. Measuring the effectiveness of elearning is critical to confirming it delivers tangible benefits. Inability to justify value and success erodes stakeholder buy-in and discourages project champions.
  • 5. 5 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Identify At its core, elearning is about solving problems. But it’s not enough to see problems only from the learner or manager perspective. You also need to understand the business case for elearning.
  • 6. 6 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com TACTIC NO. 1 Identify training needs Identify training needs in ways that stakeholders will understand by mapping them to the needs of the business. To get started with an elearning initiative ask, “What are we trying to shift? Do we need a training strategy to move the business forward? Do we need to adjust operations to streamline day-to-day activities?” example: The sales team at a manufacturing company doesn’t know how to effectively use a new cloud-based application. Impacts of this include lack of data centralization, a decrease in team collaboration, and an increase in an already present skills gap. Productivity is down 15 percent. Employee morale and retention is a big problem. The need is evident. The company needs to invest in providing the sales group with training opportunities that get all team members up to speed.
  • 7. 7 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Define It’s important to define the elearning goals for your organization. It’s even more important to define and set the right goals.
  • 8. 8 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com TACTIC NO. 2 Define goals With your needs in mind, set goals in collaboration with key stakeholders. Discuss what a successful elearning program would look like. GOALS MIGHT INCLUDE: 75% reduction in software-related IT help requests 100% of employees trained on the new software in 3 months Ongoing training opportunities for power users example: An organization seeks to increase employee productivity so it deploys a new software application. Currently, each employee spends an average of two hours per week contacting IT for help or searching online for assistance getting unstuck. IT is swamped with requests, leaving inadequate time to work out bugs following the software launch.
  • 9. 9 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Establish Success metrics should support training needs and confirm that the goals you set are met. Align your metrics with your goals. Good metrics help benchmark success, and discussing metrics with stakeholders provides clear understanding of the data you need to collect.
  • 10. 10 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com TACTIC NO. 3 Establish your success metrics The Kirkpatrick Model, based on four levels of learning evaluation, shows how to measure the effectiveness of an elearning program. example: If the goal is to get 100 percent of a sales team trained on new software, then success metrics should measure knowledge building. They also should evaluate the result of that learning, or the business impacts. Your reporting might include: • Number of training registrants (measures reaction to learning opportunities) • Number of IT tickets created before and after learning took place (measures behavior change) • Hours spent on training per employee
  • 11. Training Managers Executives & CEOs ManagersSupervisors FOUR — Learning Results & Impact — Has the course helped improve business results? ONE — Reaction to the Learning — Do the course participants like it? THREE — Behavior Change — Do participants use their newly acquired skills on the job? TWO — Knowledge — What knowledge, skills, attitudes, confidences, or commitments were acquired? EVALUATION LEVEL EVALUATORS 11 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Metrics To Measure Success
  • 12. 12 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Understand To fully understand the benefits of elearning, analyze the costs. This includes immediate and ongoing administrative and subscription costs.
  • 13. 13 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com TACTIC NO. 4 Understand your investments personnel costs These costs cover internal employee and external contractor wages. Also factored into the equation are project direction, development, management, and administrative expenses. platform costs These costs cover the monthly or annual elearning provider subscription. Price varies depending on the solution and contract terms. hidden costs These costs are associated with transitioning to a new learning program, as well as personnel disruptions, resource reallocations, existing project deferrals, and team realignments.
  • 14. 14 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Consider Consider the benefits. Elearning offers a wide range of benefits. They may not all apply to your organization, but it’s likely that a significant number will.
  • 15. 15 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com TACTIC NO. 5 Consider the benefits Some benefits can be quantified. These include training cost reductions, productivity changes, time, and quality. All are examples of hard data. Other benefits are more difficult to quantify–but are equally important–including customer service changes, morale, creativity boosts, talent development improvements, and organizational culture shifts. In addition to these, discuss potential benefits specific to your organization.
  • 16. 16 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Benefits: Additional Discussion reDUction of traininG costs Producing learning content or sending employees to training offsite takes time and costs money. But elearning happens online, reducing inefficiencies and expenses. ROI goes up when a course costs nothing to develop and is easily accessed. reDUction of time spent traininG In 2013, the average employee spent 31.5 hours in training, with 55 percent of that occurring in a classroom setting, according to the 2014 Association for Talent Development (ATD) State of the Industry report. But elearning lets individuals learn at their own pace at times that work best for them. A Brandon Hall Group study reported that elearning requires from 40 to 60 percent less employee time than when the same material is delivered in a traditional classroom setting. You can calculate the reduction in training time against each employee’s salary to realize the savings. improvement in traininG sUccess Classroom-based instruction is frequently “one-size-fits-all.” But instructor-led training supplemented with elearning has the highest success rate, because it lets in-person training sessions be focused and personalized to audience needs, according to Learning Solutions Magazine. Trainees can consume elearning training outside of the classroom setting and later come to in-person sessions equipped with knowledge for meaningful discussions.
  • 17. 17 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com17 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com improvement in employee onBoarDinG Organizations lost nearly a quarter of all new employees within a year, according to the 2012 Allied Workforce Mobility Survey: Onboarding and Retention. Major contributing factors were underperforming onboarding programs and lack of training. The study indicated that the cost of not training new employees properly is steep. Filling one position costs on average $10,731 not including relocation costs, which alone can reach more than $20,000. But elearning allows an organization to streamline onboarding by getting new hires quickly up to speed on software and skills related to their roles. According to the Aberdeen Group: Onboarding Benchmark Report, organizations reported that effective onboarding improved retention rates by 52 percent and time to productivity by 60 percent. For employees, long term outcomes of successful onboarding included job satisfaction and organizational commitment. Effective onboarding IMPROVED RETENTION RATES BY 52% and time to PRODUCTIVITY BY 60%* *Aberdeen Group: Onboarding Benchmark Report
  • 18. 18 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com improvement in employee retention Employees who are not provided training opportunities are more likely to find new jobs, according to the Harvard Business Review. But elearning allows employees to experience continuous development opportunities, making them feel more connected to their roles. And having a next level of training always available creates an environment of perpetual challenge, encouraging the development of a learning culture. The Society for Human Resource Management (SHRM) describes the cost to replace an employee as 50 to 250 percent of annual salary and benefits. fewer online searches Employees spend hours online looking for answers to simple questions in a vast sea of information. But effective online training provides instruction on a wide range of subjects and software applications, aggregating answers in a single resource with a consistent level of quality.
  • 19. 19 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com increased productivity Elearning provides ongoing training opportunities, which can boost productivity (often measured by units produced, items sold, forms processed, and tasks completed). According to an IBM report, companies that use elearning tools and strategies have the potential to boost productivity by up to 50 percent. For every $1 that company spends on training, it realizes an estimated $30 worth of productivity. learning program roi calculator Plug your data into this equation to evaluate the potential productivity gains and calculate the ROI of your learning program: X –[( ) Cost of Elearning Program Hours Saved Per Year Oganization Wide ] Cost of Elearning Program Hours Worked Per Year Average Salary Per Employee
  • 20. 20 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com20 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com increaseD employee enGaGement Employee engagement is a challenge at many organizations. But workers provided training that relates to their jobs and supports personal growth are more likely to feel completely engaged and connected to the workplace, according to the Harvard Business Review. When employees are not engaged, they don’t put energy or passion into work. Actively disengaged employees are distracted and unhappy. Gallup reports that 30 percent of employees are engaged, 52 percent are disengaged, and 18 percent actively disengaged. A disengaged employee costs an organization approximately $3,400 for every $10,000 of salary (Gallup). But organizations with highly engaged employees can decrease turnover by 87 percent (Human Capital Institute). When compared to competitors, organizations with high employee engagement are 12 percent more profitable and 18 percent more productive (Human Capital Institute). Organizations with highly engaged employees can DECREASE TURNOVER BY 87%* *Gallup A disengaged employee costs an organization approximately $3,400 FOR EVERY $10,000 OF SALARY EMPLOYEE ENGAGEMENT COST
  • 21. 21 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Often, organizations struggle with how to measure employee engagement. Gallup proposes asking employees to respond yes or no to the following statements: yes no I know what is expected of me at work. At work, my opinions seem to count. I have the materials and equipment I need to do my work right. The mission or purpose of my company makes me feel my job is important. At work, I have the opportunity to do what I do best every day. My associates or fellow employees are committed to doing quality work. In the last seven days, I have received recognition or praise for doing good work. I have a best friend at work. My supervisor, or someone at work, seems to care about me as a person. In the last six months, someone at work has talked to me about my progress. There is someone at work who encourages my development. This last year, I have had opportunities at work to learn and grow.
  • 22. 22 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com22 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com A leading indicator of employee engagement is the effectiveness of a manager. Effective managers empower employees, recognize their contributions, and seek their input. It takes a specific skill set to be a great manager. Companies that hire or promote effective managers increase the odds of successful employee engagement. A manager role should be viewed as unique and requiring a specific skill set. Explore these curated lynda.com online tutorial playlists designed to help managers be more effective: 1. Develop: Empower managers to coach and develop employees, build business relationships, and provide effective employee feedback. www.lynda.com/develop 2. Delegate: Explore one of the keys to managerial success—the ability to effectively delegate responsibility. When managers delegate work to employees, they develop employees’ confidence, leadership, and work skills. www.lynda.com/delegate 3. Communicate: Effective communication is a fundamental management skill. Explore how to provide feedback—both good and bad. www.lynda.com/communicate
  • 23. 23 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Measure You’ve identified needs, set goals, established success metrics, analyzed investment costs, and considered likely benefits. Now its time to measure your elearning success.
  • 24. 24 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com TACTIC NO. 6 Measure training success Conduct a survey Distribute pre- and post-learning questionnaires to a variety of employees from numerous departments—including individual contributors, managers, and executives. Make sure respondents represent a cross-section of your organization. Conduct the pre-learning survey one month before elearning begins. Share the post-learning survey two months later.
  • 25. 25 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Pre-learning feedback should cover: • The effectiveness of current training initiatives • Current opportunities for learning and development • Emphasis placed on learning and development • Resources used for career growth or skills development Post-learning feedback should cover: • The effectiveness of elearning and new training initiatives • Current opportunities for development • Emphasis placed on learning and development • Skill increases realized as a result of elearning • Resources used to help in career growth or skill development For more information, view a questionnaire that lynda.com clients use to survey end users and understand the effectiveness of online learning.
  • 26. 26 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Test a focus group Analyze impacts by researching the effects of your elearning program. Invite employees to participate as members of a control group. Test their skills before and after elearning. Use assessments Assessments help learners and their organizations measure improvement. Organizations that use elearning solutions offering assessments can verify that time spent training was worthwhile. Analyze impacts by researching the effects of your elearning program. Invite employees to participate as members of a control Test a focus group Analyze impacts by researching the effects of your elearning group. Test their skills before and after elearning.
  • 27. 27 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Achieving success Using these tactics, you can be better equipped to demonstrate that your elearning program has positive ROI. You will have successfully identified training needs, defined your goals, and established what success looks like. By understanding the costs and benefits of your elearning program, and how to measure learning, you can set the stage for success.
  • 28. 28 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com Savanah Barry Lead Generation Specialist Enterprise Marketing, lynda.com Savanah Barry is a marketing specialist at lynda.com focused on providing enterprise learning solutions to academic institutions, businesses, and government agencies. She is passionate about helping organizations achieve learning goals. Author
  • 29. 29 | Demonstrating Positive Elearning ROI: 6 Tactics for Success | lynda.com For 20 years, lynda.com has helped students, leaders, IT and design pros, project managers—anyone in any role—build software, creative, and business skills. We work with the best instructors. Our production standards are second to none. And with training that is quick to market, we’ve grown our online video-based content library to include thousands of engaging courses. Now a LinkedIn company, lynda.com serves more than 10,000 organizations. With tutorials presented in five languages, lynda.com is a global platform for success. About lynda.com Contact us for lynda.com Enterprise Learning Solutions pricing. US: 1 (888) 335-9632 International: +1 (805) 477-3900 EMEA: +44 (0) 1252 416554 APAC: +61 2 9779 1582 email: enterprisesolutions@lynda.com web: www.lynda.com/industries