Maximizing the ROI of Learning and Development (L&D) initiatives is crucial for organizations, but it goes beyond simple number crunching. L&D is a direct path to aligning capabilities with business goals.

And millions of employees participate in L&D programs annually, covering various areas such as compliance, soft skills, upskilling, and product training.

In the wake of COVID-19, companies have increased their investments in training, with small, midsize, and large companies investing $1,400, $826, and $1,700 per learner, respectively, in 2022.

How You Can Track the ROI of L&D

Tracking ROI has become essential, particularly regarding revenue and profits.

Traditional metrics, such as the number of training attendees or those who completed webinars, hold less significance, and new metrics gain importance.

However, only 8% of L&D teams calculate their ROI, leaving 92% of L&D programs without success metrics.

Calculating the true ROI of L&D in 2023 is a challenge that requires considering several factors.

Measuring the increase in employee ability resulting from L&D initiatives is crucial, although many employees express dissatisfaction with the outcomes.

A significant percentage forget what they learned immediately, find the training irrelevant to their roles, or consider the content outdated.

Moreover, organizations often lack access to the right training content, resulting in a mere 10% of the money spent on traditional L&D delivering tangible results. Ineffective training costs $1,350 per employee.

However, the second route to ROI involves tracking the increase in revenue. Studies show that for every $1 spent on L&D, revenue increases by $4.70.

Arist, a microlearning platform utilized by 15% of Fortune 500 companies, provides a solution.

Arist allows organizations to measure ROI through revenue by attaching value to modern key performance indicators (KPIs) such as confidence lift, frequency of application, qualitative application of knowledge, internal mobility, and employee retention.

In Conclusion

It only takes 2 to 8 hours to create microlearning content, up to 195% less time than traditional methods, and employees can complete the content in just 5 to 7 minutes.

With an estimated annual cost of $96,000 per 1,000 learners, Arist offers an average annual savings of $480,000.

Arist reaches learners globally, including countries like Madagascar, Kenya, and Sudan.

It receives high satisfaction ratings from learners, with an average Net Promoter Score (NPS) of 79, surpassing the average NPS of 41 for software-as-a-service (SaaS) companies and -24 for learning management systems.