How to measure returns on investment on employees' learning & development

economictimes.indiatimes.com:

Organisations now recognise the importance of investing in their most valuable asset: their people. A recent report revealed that India’s soft skills training market size reached $ 581.2 million in 2022. It is forecasted to reach $ 1.2 billion by 2028, compounded by a growth rate (CAGR) of 11.9 per cent during 2023-2028.

This report does not consider tools, technical, systems, or process-based L&D investments. With such huge investments in employee development areas, it becomes imperative for Learning & Development (L&D) program to demonstrate the business impact of these initiatives to stakeholders and showcase their Return on Investment (ROI). Return on Investment on L&D refers to measuring the financial benefits gained from L&D initiatives compared to the investments made.

It helps evaluate how L&D efforts are contributing to organizational success. By assessing ROI, L&D professionals can gauge the efficiency and effectiveness of their programs, make data-driven decisions, and secure support for future initiatives. Measuring L&D ROI is crucial for companies looking to maximize the impact of their learning programs.

Remember, ROI analysis is not a one-time event but has to be an ongoing process woven into the fabric of every L&D program. Organisations can stay ahead in the ever-evolving talent development landscape by continuously evaluating and improving the impact of learning initiatives. ROI data provides concrete evidence of the impact of L&D programs, enabling informed decision-making on program enhancements, resource allocation, and future investments.