POPCORN SKILLS: MEASURING THE ROI OF TRAINING PROGRAMMES
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Learning and Development (L&D) is no longer a “nice-to-have”—it’s a critical business function with tangible financial outcomes. But how do you prove it? Measuring the return on investment (ROI) of training programs is essential to demonstrate their value and secure continued buy-in from stakeholders. It’s not just about tracking completion rates; it’s about connecting training initiatives to business goals, productivity gains, and cost savings.
In this blog, we’ll provide a clear methodology for calculating ROI, explore tools to help you track results, and walk you through real-world examples to make it practical and actionable.
Why Measure ROI in Training Programs?
Measuring ROI in L&D allows you to:
Prove the financial impact of training on business outcomes.
Justify budget allocation and advocate for more resources.
Identify what works and refine future training strategies.
A LinkedIn Workplace Learning Report found that companies tracking training ROI are 46% more likely to gain executive buy-in for their L&D programs. When the financial impact of learning is clear, its strategic importance becomes undeniable.
A Step-by-Step Guide to Measuring Training ROI
Step 1: Define Clear Objectives
Start by linking training to measurable business outcomes. What do you want the program to achieve? Examples include:
For a retailer introducing a new product: Increase in product sales within a defined time frame.
For a manual handling course: Reduction in workplace injuries and associated costs.
Pro Tip: Use the SMART framework—Specific, Measurable, Achievable, Relevant, and Time-bound—for setting your objectives.
Step 2: Gather Baseline Data
To measure the impact, you need to know where you started. This involves collecting pre-training data, such as:
Current sales figures.
Injury rates or claims costs.
Employee engagement or satisfaction scores.
Baseline data provides a benchmark for comparing post-training outcomes.
Step 3: Calculate Training Costs
Include all direct and indirect costs associated with the training program:
Development costs (e.g., eLearning content or course materials).
Delivery costs (e.g., trainers, platform fees, or travel).
Employee time spent on training.
Example:
For a manual handling course for 500 employees:
eLearning development cost: £20,000
Delivery platform fee: £5,000
Employee training time (4 hours @ £20/hour): £40,000
Total cost: £65,000
Step 4: Measure Post-Training Impact
After the training, track the metrics aligned with your objectives:
Retailer example: Monitor product sales over the next three months. Did the sales team’s training result in higher revenue?
Manual handling example: Compare the number of workplace injuries and associated claims before and after training.
Step 5: Quantify the Financial Impact
Convert the results into monetary value. For example:
Retailer example: If sales increased by £200,000 after the training, the financial impact is £200,000.
Manual handling example: If workplace injuries dropped by 50%, reducing claims costs from £100,000 to £50,000, the financial impact is £50,000.
Step 6: Calculate ROI
Use the following formula to calculate ROI:
Net Benefits divided by Training Costs, then multiplied by 100 to give you a percentage.
Where Net Benefits = Financial Impact - Training Costs.
Example 1: Retailer
Financial Impact: £200,000
Training Costs: £50,000
£200,000 - £50,000 = £150,000 Net Benefits. £150,000 divided by £50,000 training costs, multiplied by 100 = 300% ROI
Example 2: Manual Handling Course
Financial Impact: £50,000
Training Costs: £65,000
£50,000 - £65,000 = -£15,000 Net Benefits. -£15,000 divided by £65,000 training costs, multiplied by 100 = -23% ROI
In the second example, the negative ROI indicates a need to reevaluate the program or look at indirect benefits like improved employee morale or fewer disruptions.
Tools to Measure and Track ROI
There are several tools to streamline data collection and analysis:
Kirkpatrick Model Evaluation Tool
A popular framework for evaluating training effectiveness across four levels: Reaction, Learning, Behaviour, and Results.
Learn more: Kirkpatrick Partners
Docebo LMS
Tracks training metrics like completion rates, engagement, and post-training assessments, while integrating with business KPIs.
Learn more: Docebo
SurveyMonkey
Use for employee feedback to measure training satisfaction and perceived impact.
Learn more: SurveyMonkey
Power BI
Visualise and analyse training data to identify trends and measure ROI effectively.
Learn more: Microsoft Power BI
Degreed
Tracks skills development and aligns learning outcomes with business objectives.
Learn more: Degreed
The Benefits of Long-Term Partnerships for Measuring ROI
At Popcorn Learning Agency, we understand that proving ROI isn’t a one-time task. It’s an ongoing process that requires a long-term approach to refine training strategies, measure outcomes, and continuously improve programs. Here’s how partnering with us can help:
Customised Solutions: We tailor training programs to your unique objectives, ensuring they align with measurable business goals.
Continuous Support: Our long-term partnerships provide ongoing evaluation and updates, ensuring your training evolves alongside your business.
Proven Impact: With data-driven insights, we help you track ROI consistently, refine your approach, and secure stakeholder buy-in for future initiatives.
Final Thoughts
Measuring the ROI of training programs isn’t just about justifying budgets—it’s about demonstrating how L&D drives tangible business outcomes. By following a structured methodology and leveraging the right tools, you can connect training initiatives to financial success.
At Popcorn Learning Agency, we specialise in creating impactful training programs that deliver measurable results. Whether you’re launching a single course or developing a long-term learning strategy, we’re here to partner with you every step of the way.
Let’s Get Started! Contact Popcorn Learning Agency today!
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