Consider this scenario:

Reliance Insurance sells life insurance, annuities, money management solutions and retirement services; Frank Thomas is CEO and Marge Thompson is the head of training and development. During a recent conversation about a communications workshop, Frank asks Marge a simple question: “What value is the communications workshop bringing to Reliance Insurance.”  Marge shared the following:

• 600 managers have been trained.
• 100% of the managers downloaded the digital badge indicating they completed the course.
• 90 Program Net Promoter Score (NPS).
• 80% rated facilitator engagement 4.5 out of 5.
• 98% of managers now know their personality type.

Frank pressed on by asking to what extent participants were using the skills and what impact that was having on sales, efficiencies, customer satisfaction and employee engagement. On top of that he wanted to know the worth of the improvements and value compared to program costs.

Meeting Leaders’ Demands for Training Impact

The scenario above plays out in organizations worldwide. A senior executive asks for training results, and in response, the training team reports activity, reaction and learning data. According to LinkedIn’s 2023 Workplace Learning Report, these types of measures are of the top five ways training and development organizations measure results. It’s not surprising, given that reporting on attendance, learner reactions and what they’ve learned is both routine and easily accessible.

However it’s no secret that CEOs and other senior leaders want more than activity-based and vanity measures. Instead they want information that demonstrates training’s pay off in terms of improved business measures and, yes, even return on investment (ROI). Studies shown in “Measuring for Success: What CEOs Really Think about Learning Investments” by Jack J. Phillips and Patti Pulliam Phillips and LinkedIn Learning’s 2024 Workplace Learning Report, demonstrate the need to align learning initiatives with the business to maximize pay off.

Why You Shouldn’t Wait to Prove Training Impact and ROI

Depending on the survey, the questions asked and how they were asked, there are a variety of reasons why training departments fail to demonstrate the impact and ROI of their training programs. Much of the failure is due to widespread misinformation in the industry and on social media, despite decades of evidence showing that credible impact and ROI analysis is achievable.

Some of the most noted reasons are:

• Fear of the outcome.
• Too difficult.
• Too costly.
• Too time consuming.

Yet, the biggest reason is that no one asked for it. Senior leaders want to see the data that proves training was worth it, but it is not until they specifically ask for that data that learning and development (L&D) leaders make it a priority to demonstrate.

Waiting for leadership to request the data to prove training’s impact can complicate your work and require additional resources, add unnecessary costs and/or risk undesirable results. Waiting can put L&D leader in crisis mode, which can lead to bad decision-making and wasted resources.

Planning pays off.

Every program should be evaluated for impact and ROI, and planning for these outcomes is essential. In fact, results from ROI Institute’s 2020 Benchmarking Study found that planning for evaluation, including impact and ROI occurs even when impact and ROI studies are not pursued.

Every program should be evaluated for impact and ROI, and planning for these outcomes is crucial. The ROI Institute’s 2020 Benchmarking Study found that effective planning for evaluation, including impact and ROI, is a common practice even when formal impact and ROI studies are not pursued.

Planning to prove training’s impact and outcomes can ensure that:

• Programs are aligned with the needs of the business, identifying business measures that need improvement and the value of those measures upfront.
• Instructional designers use application, impact and ROI objectives as part of their blueprint for designing programs.
• Data collection is built into the program, thereby avoiding unnecessary costs associated with deciding after the fact. This also can help ensure that participants know their role in providing data.
• Analysis is planned and agreed upon at the outset, reducing the angst that comes with trying to figure out analysis protocol after data are collected and mitigating the number of questions when results are presented.
• Reporting design and strategy are ready regardless of results.
• Time is managed appropriately.

Planning for impact and ROI in advance can make it easier and more cost-effective to execute an evaluation. It can also boost your confidence that results will be favorable.

Wrapping Up

To effectively demonstrate training’s impact, plan for impact and ROI proactively. Change is inevitable — if executives aren’t asking now, they will in the future. Planning ahead can ensure alignment with business goals, improve program, and reduce evaluation costs. Do not wait for stakeholders to request proof of training’s impact, but instead, be prepared by planning and integrating impact and ROI considerations from the outset.