Stop measuring training ROI

…and start showing it!

How do we really show ROI from training? And more importantly, how do we get management to really understand the impact L&D has?

In my experience, it’s all about the story.

ROI: It’s More Than Just a Number

It’s easy to think that all your management team care about is numbers, revenue and cash, but you’d be surprised – they’re more emotional than they let on.

Oh sure, they’ll tell you they’re data-first and all about logic… but in reality, the best way to get their buy-in, is by telling stories.

Senior management are not robots!

If you’re leading with numbers and nothing else, you might find that your budget gets spent on other things. Your job is to make those numbers mean something!

Here’s the test I always use:

• If your boss skimmed this in 30 seconds, would they care?

• Can you answer the question: So what?

Stats are part of the picture, but they’re not the whole thing!

Yes, You Still Need the Numbers

Of course, you'll still need to include ROI calculations somewhere. Here’s one way to calculate ROI from a training programme:

Training ROI = Net Gains / Cost

Break it down like this:

• Add up all the costs involved

• Estimate the business gains: improved performance, reduced attrition, faster onboarding, higher conversions

• Compare long-term impact: 3, 6 or 12 months out

Example:
If your training cost £10,000 and led to £40,000 in financial gains over six months, your ROI is 4:1.

Translate Outcomes Into Business Language

This is where a lot of L&D reports fall flat. We talk about engagement, confidence and capability - things we understand, but that don’t always resonate with stakeholders.

So translate. Here’s what I mean:

Now something that’s important, but often missed, is how these outcomes support the goals of the organisation. If you can link your L&D initiatives back to wider goals, it’ll show senior management how your activities are pushing the business forwards and contributing to the overall strategy.

Build Your Evidence Bank

Don’t wait until someone asks you for proof, instead collect it as you go. You’ll thank yourself later! Try to set up a process that captures:

• Pre/post capability assessments

• Behavioural shifts over time

• Performance data (wherever possible)

• Line manager feedback

• Participant stories or quotes

• And yes, the numbers: hours saved, churn reduced, NPS lifted

Tell the Story

Once you’ve got all your evidence, you can start to craft the story. Ok, I’m making this sound a little dramatic! All you need are short examples or mini case studies. Simply answer these questions:

• What problem was solved?

• What changed?

• Who benefited?

• How do you know? (This is where the numbers come in!)

• How does this align with long-term goals?

Look online at case studies or testimonials that companies use to sell their services, and copy their format.

The best ones are designed to tell a story, provide evidence and get the right information across in the most effective, efficient way – which is exactly what you’ll need when presenting to your boss!

Make sure you present the information in a way that’s easy to understand and digest. Bullet points, visuals, charts, whatever you can do to answer the first question: if your boss skimmed this in 30 seconds, would they care?

You can anonymise names and simplify the numbers, but give your stakeholders something they can visualise and discuss.

How to show training ROI

In a nutshell, if you're trying to prove the value of training, stop relying on just the numbers, and start telling more stories:

• Translate your data into business terms,

• get evidence and anecdotes,

• and weave it into a story!