How to Calculate the ROI of Employee Training Software
Employee training is obviously important, and the numbers back up this reality. For example, one study discovered that companies that invested $1,500 of training per employee saw 24 percent higher gross profit margins on average than ones that invested only $125.
However, results such as these require effective training approaches and methods. Simply giving an employee a printed manual to read will not likely yield the increased productivity you seek. Employee training software can not only reduce your initial outlay, but also lead to more impressive end results. A good return on investment (ROI) will go a long way in demonstrating the importance of training. Here are some things to think about when calculating the ROI of employee training software:
Consider the Savings of Going Paperless
Printed training materials require space—bookshelves and offices to hold all the binders, notebooks, and manuals needed for a company with many processes. These materials also require paper and ink if they are printed locally, or professional printing services and shipping costs if published at corporate or by a third party. These materials aren’t that secure, either, requiring extra measures to protect any IP contained within and shredding services for proper disposal. Employee training software eliminates all these additional, expensive costs. Furthermore, a solution that includes collaboration tools and mobile devices can do away with the need for multiple computers on which workers undertake their training; simply use an iPad to access the employee training software and ditch those old, inefficient, insecure desktops.
Estimate the Cost of Replacing an Employee
Employee turnover is back on the upswing in some industries, and its costs can be steep. Interviewing, onboarding, and training a new worker takes time and money. Tasks may be overlooked or expensive overtime may be necessary in the absence of the departed employee. And productivity takes a hit while the new hire gets up to speed. Employee training software is a proven strategy toward not only getting these hires proficient, but also retaining workers already in place. Once you determine how much one turnover costs, you can get a better idea of the ROI of employee training software.
Predict the Productivity
Properly trained employees are naturally more productive than improperly trained ones. And if an employee is completing a task in half the time of another, that’s obviously a benefit to your company. Training software can provide the skill sets that your workers need to do their jobs efficiently and cost-effectively.
Quicker, More Successful Rollouts
Companies spend much time and resources unveiling a new product or service. Once devised, the quicker and more expertly an item can be rolled out, the sooner it can be successful or adjusted. Training software improves the rollout process by teaching workers about the new product so they are less likely to be bumbling around trying to learn what will be required. Moreover, iPad-based solutions can take the training to the locations that employees will be completing the rollout. If there’s a problem or concern, these workers can shoot video and send the footage back to corporate, which then can collaborate back on the best way to solve the issue.
How has employee training software helped your company’s bottom line?