Calculating the real value of e‐learning

Abstract

Many companies view their training budget strictly as a cost centre which is susceptible to cuts when the business needs to reign in expenses. In this article, the author explores the benefits of training investments with a particular focus upon measuring the value of delivering training via an enterprise e‐learning initiative. In addition to the many hard/measurable returns, the piece explores the greater “benefit halo” of an e‐learning initiative and offers a number of formulas for calculating the ROI and justifying the cost to senior managers. The article concludes with a case study detailing the experiences of Rockwell Automation when the company implemented an enterprise e‐learning initiative to deliver much of its training to both employees and customers.

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