February 28, 2024

Thrive Insider

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Decoding the Corporate Learning Landscape:  An Economic Perspective

In the modern business realm, learning and development (L&D) serve as the linchpin for synchronizing employee capabilities with business objectives.  Millions of employees actively partake in L&D programs annually, with a pronounced emphasis on compliance, soft skills, upskilling, and other such aspects.  The COVID-19 pandemic further heightened this focus, catalyzing enhanced corporate investment in learning and development.

Surprisingly, a mere 8% of L&D teams calculate their return on investment (ROI), leaving a significant majority of programs devoid of success metrics.  This leaves an apparent need for accurate ROI calculation, accounting for time, effort, and financial factors.  Generating a simple 20-minute corporate learning session requires between 55 and 177 work hours, not accounting for potential tertiary costs like transportation, venues, and even digital platforms.

Despite these investments, satisfaction levels often fall short, with only 10% of traditional L&D expenditure delivering tangible results.  Ineffective training can prove costly, siphoning approximately $13.5 million per 1,000 employees.  However, a silver lining persists; each dollar invested in L&D has been shown to increase revenue by $4.70.

Finally, embracing the right tools can enhance the learning experience, reduce costs, and boost ROI.  Arist, a science-backed microlearning platform, promises substantial savings in time, effort, and energy, helping businesses redefine the financial dynamics of corporate learning.

Measuring the ROI of corporate learning
Source: Arist