Return on Investment (ROI)

Return on Investment (ROI)

Return on Investment (ROI) of the learning and development programme is necessary. This evaluates the efficiency of the expenditure against all the objectives set. If seen the ROI was always been associated with the financial measurements. With a change in the time and business, environment ROI became an important part of the L&D.Return on Investment (ROI)

Measuring ROI in the business case

Measuring the development in the L&D programme, the technology has helped in lowering the cost of learning. It provides a better and more engaging experience for users.

  • First calculate your investment – learning and development programmes requires an investment like the fees for the speaker, meals & travel expense. There is an option for online training for saving the investment expense. Still, it involves a bit of investment in the form of cost of technology and also the cost of teaching.
  • Identify and list the things to measure– there are a number of things to consider when determining whether the L&D programme is effective. Following are the few measures included to evaluate the L&D programme:


The employees’ engagement

Performance appraisal

Satisfaction of customers

An organization can measure and weigh the performance as per their requirements. E.g. if a company wants to focus on the productivity, then it’ll focus on training its employees in improving the productivity.

Measuring the Return on investment helps in finding the overall growth of the organization and also the employees’. Thus, it allows the manager to communicate the business needs of the company to the working executives.


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