The training and development of employees on new technologies, tools and processes can contribute to building the new landscape of business. It is now a well-established fact that there is no value in building a business around new systems and technologies if the organization cannot nurture the skills needed to extract benefits from them.
And while upskilling and reskilling initiatives are on the rise, it is necessary to set a benchmark against which employee performances can be measured. Training providers are stepping in to deliver digitized training and are helping organizations realize not just the Return on Investment (RoI), but also the Return on Expectation (RoE).
What is Return on Expectation (RoE)?
By clearly defining objectives and expectations and connecting them with tangible business goals, an organization can align a training program to deliver outcomes that resonate with its key stakeholders. Thus, the results achieved can directly correspond to the results expected by the stakeholders, while realistically achieving the objectives of training.
RoE in the Training Domain
RoE is used as a metric in learning and development (L&D) to measure the success of a training program in meeting its objectives. It gauges the accomplishment of objectives on the basis of changes in motivation and performance of the employees once they complete a course. Hence, RoE is an indicator of the effectiveness of a training program and the value it adds to the overall performance and productivity of an organization.
How do eLearning programs fulfil the learning expectations of employees and organizations?
eLearning course methodology zeroes in on the expectations of the employees and organizations to achieve higher RoE. eLearning training programs take into account that employees have expectations from learning and reset these expectations according to the learning requirements of the organizations. Subsequently, the training facilitates the fulfilment of these expectations through custom designed learning content and activities around these expectations.
What learning model is employed to gauge the Return on Expectation for organizations?
The concept of RoE gained importance when Don Kirkpatrick shared his thoughts on training evaluation in November 1959. He emphasized on four parameters to set expectations and measure outcomes of a learning intervention. eLearning initiatives help organizations determine their RoE through the following levels of the Kirkpatrick’s Model.
Level 1 – Reaction
At this level, the eLearning development methodology checks on how much the employees will react favorably to the learning event. For this, a Base Value (BV) is taken from the organization based upon the existing knowledge and skill level of the employees prior to the training. Subsequently, organizations are also asked to provide a Target Value Achieved (TVA) which defines the level of preparation of the employees to efficiently do the job post training. Before employees undergo the e-learning course, the Expected Difference (ED) between where the employees currently are and where they should reach post training is determined by subtracting BV from TVA.
Level 2 – Learning
Here, the e-learning program checks if the participants are acquiring the intended knowledge, skills and attitudes during their participation in the learning event. The employees undergoing the training are checked at regular intervals to find the Actual Value Achieved (AVA) in terms of the skills and knowledge they are acquiring while attending the learning event.
Level 3 – Behavior
Once the employees have completed the eLearning course, organizations can check the degree to which participants are ready to apply what they have learned during the e-learning course when they are back on the job. They can do this by subtracting AVA from BV. This will be the Actual Difference (AD) in their skills, knowledge, behavior and attitude before and after training.
Level 4 – Results
Finally, organizations can gauge the degree to which the targeted outcomes have been achieved as a result of the learning event and subsequent reinforcement. This will be their RoE and can be calculated as the percentage of ED: (AD / ED) * 100 = RoE
Overall, the concept of RoE entails capturing of significant data that allows you to highlight the effectiveness of a training program. Training professionals ask questions pertinent to a training intervention to form expectations of the stakeholders. This provides clarity to the organization regarding the impact of training by transforming general expectations to observable and measurable results that adds value to overall business processes and productivity.