Evaluating eLearning 

Effective eLearning programs can have a positive effect on productivity, customer satisfaction - even employee retention.

But what does this mean for you? How can you determine whether these benefits will be realized in your organization?

Many companies use traditional business measurements such as ROI (Return on Investment) to assess the viability of eLearning programs. Before you begin a new project, make sure you can identify your total training costs and quantify all benefits. It is not until this exercise is done that you can determine an appropriate budget for your project or whether the benefits out weigh the costs.

Calculating Training ROI

Experts have developed formulas for measuring training ROI.

One such formula, included in Jack Philips's Accountability in Human Resource Management, determines ROI by multiplying the total benefits (TB) of training in dollars by 100 and dividing by the total training program cost (TTC).

When calculating total training costs consider all costs - include everything from office supplies to the cost of your staff missing work when attending traditional classroom courses.

When calculating total benefits, evaluate the tangible results of training such as increased productivity, and assign a dollar value to each. Don't forget to include soft benefits such as improved communication and employee morale.